Labor offers free childcare for lowest-income earners
More than 880,000 families will be $1200 a year better off per child, with Labor promising to boost taxpayer-funded childcare subsidies if elected on May 18.
NSW
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Childcare will be free for hundreds of thousands of low-income families under a Labor plan to boost taxpayer-funded subsidies, if elected on May 18.
More than 880,000 families will be an average of $1200 a year better off per child with Labor planning to spend $4 billion to further reduce the out-of-pocket costs parents pay for child care.
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The latest election sweetener will see almost 372,000 families earning up to $69,000 a year receive 50 hours a week of free child care by increasing the government subsidy from 85 per cent to 100 per cent of childcare costs.
More than 150,000 families with a combined income of between $69,000 and $100,000 will receive a rebate covering 85 per cent of fees, delivering an extra $27 a week.
The subsidy will gradually taper down to 60 per cent for families earning a combined income of $174,000, up from a current 50 per cent subsidy.
While families on low and middle incomes will secure more assistance, Labor will keep the current subsidies — introduced in July last year — of between 20 and 50 per cent for families earning between $174,527 and $351,248 a year.
Under both Labor and the Coalition’s package, families on more than $351,248 will receive no government assistance.
Labor says its higher subsidies will deliver cheaper childcare for every family earning less than $174,000.
Despite raising concerns about the impact of the Coalition’s activity test for parents, Labor will keep the eligibility criteria which requires both parents to work, study or volunteer for at least eight hours a fortnight to access rebates.
Labor will also keep the Coalition’s annual cap which means families earning more than $185,710 are limited to a $10,000-a-year cap on subsidies.
If elected, Labor will boost handouts from July 2020 to eligible families using centre-based care, family day care, after school and holiday care.
Labor will also ask the consumer watchdog to probe excessive fee increases and investigate ways to cap fees as it has promised to do with private health premiums.
Bill Shorten, who will unveil the package in Melbourne on Sunday, said “Labor is choosing cost-of-living relief and early education investment”.
“With 90 per cent of a child’s brain development occurring before the age of five, investing in quality early education is one of the smartest investments our nation can make,” he said.
annika.smethurst@news.com.au
Originally published as Labor offers free childcare for lowest-income earners
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