Families stuck paying for childcare on public holidays when centres are not open

Childcare providers have been accused of making massive profits while charging parents for days when their centres aren’t open.

Australian parents are forced to pay for childcare they cannot use on public holidays, boosting the billion-dollar profits of childcare centres.

Although government rebates apply, families are still paying up to $200 per day for more than a dozen public holidays a year for two children.

While some services offer a limited discount, or allow parents to swap days, most families are paying for care on days the centres aren’t open.

Federal data shows parents are collectively charged $45 million a day for each public holiday across the nation, according to figures from the June 2021 quarter.

Families are forced to pay for childcare on public holidays, even though the services are shut. Picture: iStock

A spokesperson for the federal Department of Education, Skills and Employment said childcare providers are not legally obliged to charge fees on public holidays.

“Fee charging practices are commercial decisions made by child care providers. If a family is charged a fee for public holidays, they can use an absence day and the Child Care Subsidy can be paid,” they said.

Families get 42 absence days per child a year, but most families use them for family holidays or sickness.

National childcare chain Goodstart stopped charging for public holidays in January 2020, slightly increasing the daily fee as a result. Spokesman John Cherry said families “very much welcomed the initiative”.

Lalor mother-of-two Joane is paying $63 a day after rebates for the private northern suburbs childcare centre caring for her son Ezra, 4.

“We are still charged fees for public holidays, even though they have just waived 25 per cent of our out-of-pocket costs,” she said.

“These centres are making healthy profits and there is a high number of sessional staff which they do not have to pay during public holidays,” Joane said.

Adam Glezer, consumer advocate from Consumer Champion, said the charging of fees for public holidays affects thousands of Australian families.

“I question why parents are paying for a service they are not able to access,” he said. “There are also people who have to work on public holidays who not only have to pay for childcare but also have to hire someone to look after their kids,” he said.

It comes as childcare costs have risen by more than 15 per cent since the last federal election, including an increase of $1292 in the past 12 months for the average family, according to analysis from The Parenthood.

Helen Gibbons from the United Workers Union said many private for-profit providers are making steep profits while charging parents for public holidays when centres

aren’t open.

Analysis from the union shows Australia’s top five offshore childcare companies collected $1.7 billion a year in fees and government subsidies, but don’t pay tax in Australia.