How much Qld childcare is eating into your disposable income

Queensland families are paying more out-of-pocket costs for childcare than they were just four years ago, and more than anywhere else in Australia, despite billions of dollars in subsidies. See what percentage of your income you’re paying.

Queensland families are paying more out-of-pocket costs for childcare than they were just four years ago, despite billions of dollars being pumped in subsidies.

SCROLL DOWN TO SEE HOW MUCH OF YOUR DISPOSABLE INCOME GOES ON CHILD CARE

And the Sunshine State’s families are also paying more per hour, after subsidies, for preschool programs than any other state or territory.

A Queensland family earning a combined $175,000 a year are spending 6.4 per cent of their weekly disposable income on childcare, according to analysis of data released by the Productivity Commission on Tuesday.

Queenslanders are paying more out-of-pocket fees for childcare than they were three years ago. Picture: iStock

The same family would have been forking out 5.9 per cent of their weekly disposable income on childcare in 2019.

Childcare costs are eating into 3.9 per cent of the weekly disposable income of a family earning $75,000 a year, 5.5 per cent of one earning $135,000 a year and 5.1 per cent of a couple earning $215,000 a year.

All of these cohorts are paying more in out-of-pocket costs for childcare as a percentage of their disposable income than they were three years ago.

The figures are based on a family with one child attending centre-based or family daycare for 30 hours a week.

Over the same time, the amount of commonwealth taxpayer funds tipped into the subsidy and childcare services has increased by $2bn to $10.2bn by 2021-22.

The average cost an hour of a preschool program for a child aged between four and five in Queensland has also gone up by $1 an hour after subsidy since 2016 to $3.67 an hour.

Childcare costs are eating into 3.9 per cent of the weekly disposable income of a family earning $75,000 a year. Picture: istock

This compares to the national average of $2.88 an hour, while the next most jurisdiction was the ACT, where parents were slugged $3.63 an hour.

Those across the border in NSW are paying $2.91 an hour.

The data found that out-of-pocket costs for both centre based daycare and family daycare were “generally higher for middle and higher income levels”, compared to people on lower wages, as a proportion of their income.

There is some good news for parents, with the Albanese government’s $5.6bn increase in subsidies due to start on July 10.

From July 1, the maximum childcare subsidy will be increased from 85 per cent to 90 per cent, with the top rate applying to parents earning a combined $75,000 a year.

The new subsidy rate will start at 90 per cent, then taper down as parents’ combined income increases, falling to 82 per cent for those on $120,000, 37 per cent for those in $350,000 and to zero for those earning more than $530,000.

An Australian family earning a combined $120,000 annually, with a child in care three days a week, would save $1700 a year under the new scheme.