Families face crippling childcare costs as rebate cap hits

CHANGES to the childcare rebate could see thousands of Aussie families struggling to pay their childcare fees.

Changes to the childcare rebate cap could mean crippling costs for thousands of Australian families.

ONE in 10 families who use childcare, about 100,000, will be crippled by childcare costs by June, with their $7500 ­rebate cap exhausted.

Exclusive Government projections obtained by News Corp Australia shows by next month about 36,000 families are expected to reach their CCR annual cap of $7500 for the financial year, meaning they will be slugged with the full cost of childcare — in some cases up to $200 a day — for four full months.

The figures come as Prime Minister Malcolm Turnbull steps up his attack on Labor over its failure to support the reforms tied to its omnibus Bill, saying Bill Shorten was abandoning working mums.

“Labor has abandoned working mums,” the PM said last night. “We want to make child care more affordable, available, accessible and flexible.”

According to the Government projections, by the end of June 94,000 families would have reached their childcare rebate cap, close to 20,000 more than last financial year.

Already by January 15, 3673 families had reached the CCR annual cap and were facing six full months of childcare costs without any assistance.

By next month that figure is expected to hit 36,600 according to official projections and by May 76,100 will be crippled by childcare costs.

Under current childcare benefits families get $7500 in subsided assistance. When they reach the cap, they are forced to pay for the full cost of the service on their own.

In the Government’s proposed legislation, the cap will be abolished for families with a combined income less than $185,000. Those earning more than that will have the cap increased to $10,000 in benefits.

Education Minister Simon Birmingham said last night the legislation was designed to stop families falling off a “fin­ancial cliff”.

“Thousands of families are starting the new year having already run out of assistance for meeting the cost of early childhood education and care and by the end of June we estimate around 94,000 families will hit the rebate cap,” Mr Birmingham said.

.@Nick_Xenophon says he wants to explore further options for funding for the governments childcare reforms https://t.co/t2s2kKRBm2 pic.twitter.com/V3aErNZqTB

— Sky News Australia (@SkyNewsAust) February 13, 2017

Education Minister Simon Birmingham said last night the legislation was designed to stop families falling off a “fin­ancial cliff”.

“Thousands of families are starting the new year having already run out of assistance for meeting the cost of early childhood education and care and by the end of June we estimate around 94,000 families will hit the rebate cap,” Mr Birmingham said.

This article originally appeared on Kidspot.

Originally published as Families face crippling childcare costs as rebate cap hits