Families short-changed over childcare subsidies

Victorian families have been forced to withdraw their kids from childcare after a bungle with support subsidies left them unable to afford fees.

Victorian families have been cut off from taxpayer-funded childcare support because their subsidies were used up during last year’s lockdown — when their kids had to stay home.

The federal government is now investigating its bungle, after it was exposed by the Herald Sun, as parents and the opposition demand urgent action.

Some families have already withdrawn their kids from care, unable to afford full fees.

When COVID-19 restrictions forced childcare centres to close last year, the government increased the number of absence days provided to families so they could maintain their childcare places while caring for their kids at home.

The government then continued to pay their subsidies to centre operators to ensure they stayed afloat.

But the Herald Sun can reveal these subsidies were still counted towards the annual $10,560 cap on support for families earning between $189,390 and $353,680.

With the cap covering the financial year, parents including Dingley’s Radmila Kalimnakis have run out of support in recent weeks because their subsidies were used up when their children were at home.

Ms Kalimnakis has had to take her two-year-old Lola out of care because she could not afford to pay full fees, with her 4-year-old Luca also in childcare.

Radmila Kalimnakis with husband Peter and her kids Luca, 4, and Lola, 2. Picture: Nicki Connolly

“If I knew this was the case, I would have planned for it,” she said.

“We’re now 100 per cent back to work, we’re not working from home. But we had no choice in lockdown … My subsidy should not be used for that.”

“If the government wanted to support the industry, why didn’t they just pay them and not short-change us?”

Education Minister Alan Tudge said the “technical anomaly” in the government’s plan to keep providers afloat was estimated to impact about 1500 families.

“I have an investigation underway and am seeking advice, but I am concerned it is not straightforward due to legislative constraints,” he said.

Victorian Labor MP Julian Hill accused the government of “ripping off thousands of Victorian families, effectively stealing their childcare subsidy to prop up centres during the Victorian lockdown”.

“There was no warning of this bill shock and the government must immediately promise to fix it or kids will miss out on kinder and care,” he said.

In last week’s budget, the government said it would remove the cap completely, but that change does not kick in until the middle of next year.