Childcare costs to soar past $200 a day unless government steps in, analysis warns

EXCLUSIVE: FAMILIES will be paying up to $223 a day for childcare costs unless there is a drastic shake up of government rebates, new figures show.

Victoria Rozkowicz and 3-year-old twins Charlotte (l) and Annabelle (r). Picture: NIGEL HALLETT

FAMILIES will be paying up to $223 a day for childcare costs unless there is a drastic shake up of government rebates, new figures show.

An analysis shows that childcare fees will rise by up to 22 per cent over the next four years, pushing the cost of childcare to the point where some mothers would be working for free after paying tax and the fees.

A Department of Education document, seen by the Sunday Herald Sun, shows that child care costs will increase by more than five per cent each year for the next four years.

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In Sydney, rates will hit $223 a day, Melbourne $175, Brisbane $157, Canberra $152 and Adelaide $138 by 2020.

The figures come as a political fight over childcare continues to rage, with government plans to increase rebates stalled, as Labor warns that more childcare centres need to opened to ease pressure on fees.

But Education Minister Simon Birmingham said the current average across the country for 10 hours of long day care was $88, according to figures from a government report to be released today.

Kate Ellis, opposition childhood education spokeswoman, said that the Coalition was failing to keep a lid on childcare fees.

Shadow Minister for Early Childhood Education Kate Ellis. Picture:AAP

“The Liberals promised more affordable child care, but their own figures show fees will keep going up just as fast,” she said.

“A shortage of places is pushing fees up in inner city areas where many parents work and the Government’s proposed changes will do nothing to open up more services and change this.

“If parents can’t afford to go back to work it’s bad for family budgets and bad for our economy.”

The Federal Government has been desperately trying to pass a new $3 billion childcare reform package, which would be a complete redesign of the system.

Parents can currently claim up to $7500 of childcare costs, but under the new system there would be no cap on payments for families with incomes of less than $185,710.

Families above earning $185,710 would be given rebates up to a $10,000 limit.

The Early Childhood and Child Care in Summary report also found that childcare prices were climbing at up to 14 per cent per annum in 2009, while it had been climbing at around six per cent per year since.

Mr Birmingham said the government’s reform package would keep costs lower.

“While we have reduced the increases in child care costs for Australian families as much as possible within the current system, we need to go further we need to fix this broken system,” he said.

Education Minister Simon Birmingham. Picture: AAP

“We currently have before the Parliament the most significant reform of the child care system in 40 years and I encourage Labor to stop the political games and get on board by passing the savings needed to fund our child care reforms.”

Senator David Leyonhjelm, who will be key to any vote on the package, said he did not support the bill because the money was not targeted at poorer families.

“The whole industry is based on the idea that every kid is a potential genius if you teach them algebra, French and German before the age of four,” he said.

He said that staff required too many qualifications, which increased their wages and the costs to families and the government.

Goodstart, one of Australia’s largest not-for-profit child care centre operators, backed the government’s plan.

“This year more than 110,000 families are expected to exceed the annual rebate cap which has been frozen at 2008 levels ($7500) leaving many struggling to pay the full-cost of care for weeks and sometimes months,” the company said in a statement.

“The growing gap acts as a huge disincentive for many working parents to work more than two or three days a week.”

Originally published as Childcare costs to soar past $200 a day unless government steps in, analysis warns