Push for cheaper childcare to help get women into jobs

The sting of childcare costs has been blamed for keeping women out of paid work. Now experts say taxpayers should help fund the costs.

Taxpayers should fund 95 per cent of the cost of childcare for low-income parents to boost the number of women in the workforce, early childhood groups say.

The Minderoo Foundation, established by mining magnate Andrew Forrest and his wife Nicola, is calling for more help for parents to meet childcare costs. Experts say the high cost of childcare — which reaches $120 a day in many Victorian centres before rebates — is the biggest issue stopping women doing more paid work.

Minderoo is one of many groups lobbying the federal government ahead of the May budget to push for cheaper childcare for families.

The foundation’s Thrive by Five campaign, led by former SA premier Jay Weatherill, wants the current 85 per cent subsidy for struggling families to be 95 per cent, the ­annual cap on hours removed and a simpler tapering of payments.

Andrew Forrest and his wife, Nicola. Picture: Keryn Stevens

Research from the Grattan Institute shows the move would cost $5bn but lead to a return of $11bn, and $150,000 in higher lifetime earnings for the average working mother.

Australia has the fourth-highest rate of part-time work rates across the OECD, with more mothers than fathers dropping work hours due to childcare costs.

Under current childcare funding, families earning $68,163 or less receive a subsidy of 85 per cent of fees.

For families earning $68,163 to $173,163, the subsidy gradually falls to 50 per cent. Families earning over $188,000 have their childcare capped at $10,000 per child per year.

The Thrive by Five campaign also wants two years of high-quality preschool to be universally accessible.

“Every woman deserves the right to make choices about her career and family life, without the cost and availability of early learning and childcare limiting her options,” Mr Weatherill said.

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