Labor’s childcare policy would blow out to $1 billion according to Turnbull government modelling
TURNBULL government modelling estimates that Labor’s childcare policy would blow out in cost by $1 billion, with no incentive to get mums back into the workforce linked to rebates.
NSW
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TURNBULL government modelling estimates that Labor’s childcare policy would blow out in cost by $1 billion, with no incentive to get mums back into the workforce linked to rebates.
Labor voted against the federal government’s “activity test” for childcare subsidies, which links rebates to at least four hours of job search, study or volunteering per week, while Labor’s Early Childhood Education spokeswoman Amanda Rishworth has complained about the plight of wealthy families earning more than $350,000-a-year who would miss out on subsidies.
Federal Education Minister Simon Birmingham said Labor’s policy would cost an extra $1 billion on top of the current $35 billion cost over the forward estimates, and called for their position to be clarified before the July 28 by-elections.
Mr Birmingham has removed the $7613 annual cap on government rebates for families who earn less than $187,000 a year.
The Turnbull government’s policy stipulates that rebates are means-tested, with low-income earners receiving 85 per cent subsidy on the cost of child care, while families earning more than $350,000 miss out entirely.
Mr Birmingham admits around 279,000 will be worse off under the policy but says these are either high-income earners or families who are not working, looking for work, studying or volunteering and, as such, do not meet the “activity test” requirements.
Ms Rishworth said one in four families will be worse off from the government’s changes.