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Childcare costs jump 35 per cent since Coalition came to power

Parents are paying an average $700 more a year for ­childcare, with hourly fees ­ jumping 35 per cent since the Coalition came to power — with hourly fees in some suburbs increasing by more than 10 per cent in a year. SEE WHICH SUBURBS PAY MORE

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Parents are paying more than $15,000 a year for childcare in NSW, with hourly fees soaring more than 34 per cent since the Coalition came to power.

New Department of Education data reveals parents were hit with a $700-a-year increase in fees in the 12 months to September, with hourly fees in some suburbs increasing by more than 10 per cent in a year.

The latest data shows fees for long-daycare — used by more than 213,000 families in NSW — jumped by an average of 5 per cent across Australia in the past year to $10.30 an hour.

In NSW, parents are paying an average $10.55 an hour for childcare — $15,192 a year for 30 hours a week over 48 weeks.

Taxpayers subsidise up to 85 per cent of childcare costs for low-income families, which tapers to 20 per cent for families earning up to $351,000 a year.

Labor frontbencher Amanda Rishworth and her husband Tim and sons Percy (back) and Oscar. Picture: Brad Fleet
Labor frontbencher Amanda Rishworth and her husband Tim and sons Percy (back) and Oscar. Picture: Brad Fleet

The maximum hourly rate the government will subsidise for centre-based care is now $11.98 an hour, with parents forced to pay any difference.

According to the latest data, more than 1000 of 8056 daycare centres in Australia have an average hourly fee above the government’s cap.

In Mosman, more than 98 per cent of centre-based care facilities charged hourly fees above the government’s subsidy. In Manly and some eastern suburbs, up to 85 per cent of childcare providers charged more than the subsidy.

Labor has accused the government of failing to put downward pressure on fees, despite vowing to drive down childcare prices when the subsidy cap was introduced in 2018.

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New mum and Labor’s childcare spokeswoman Amanda Rishworth said the Government’s subsidy was also failing to keep up with skyrocketing prices.

“The Government has broken its promise to families that the new system would bring fees down, and they have absolutely no plan to control skyrocketing fees,” Ms Rishworth said.

“High quality early education and care must be affordable and accessible for every Australian child.

“The child care subsidy is not keeping up with soaring fees and it’s families who are paying the price.”

Education Minister Dan Tehan said the subsidy was working. Picture: AAP/Mick Tsikas
Education Minister Dan Tehan said the subsidy was working. Picture: AAP/Mick Tsikas

But Education Minister Dan Tehan said the subsidy was still working for the majority of Australians with 72 per cent of families with kids in daycare paying less than $5 an hour for each child in out of pocket costs.

“We are providing nearly $10 billion to Australian families who are working, studying or volunteering and using our Government’s Child Care Subsidy,” he said.

Mr Tehan said childcare costs skyrocketed the last time Labor was in power.

PLACES WHERE FEES ARE ABOVE THE AVERAGE HOURLY RATE

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Original URL: https://www.dailytelegraph.com.au/news/nsw/childcare-costs-jump-35-per-cent-since-coalition-came-to-power/news-story/632fb1d62e749c2c2a39c70b2e1be2cb