Federal budget 2022-23: Childcare spend ‘incredible’ despite staff shortfall

The government will pump almost $5bn into childcare but a leading childcare provider says more is needed to fix a glaring issue for a ‘sector in crisis’.

Kaitlin Louth and daughter Amelia with Labor MPs Stephen Jones and Alison Byrnes at Big Fat Smile Dapto on Wednesday. Picture: Dylan Arvela

A $5bn boost to childcare has been labelled “incredible” but a leading childcare provider says more is needed to fix a glaring issue for what a “sector in crisis”.

Illawarra Labor MPs stopped in for a play date at a Dapto Big Fat Smile childcare centre on Wednesday to spruik the government’s $4.7 billion investment into the sector.

Treasurer Jim Chalmers announced the four-year cash splash in last month’s federal budget which will result in the government’s childcare subsidy increase from 85 to 90 per cent for eligible families earning less than $530,000.

The government claims the reforms will increase the hours women work with young children by up to 1.4 million hours per week in the next financial year which is equivalent to an extra 37,000 full-time workers.

Assistant Treasurer and Whitlam MP Stephen Jones labelled the package “great social policy and great economic policy” with Cunningham MP Alison Byrnes indicating it would benefit 12,000 families across the Illawarra.

General manager of Big Fat Smile Amanda Archer said the budget announcement was “incredible news”, but more needed to be done. Picture: Dylan Arvela

Big Fat Smile Community Preschools general manager Amanda Archer deemed the announcement as “incredible news for families”, however, she voiced concerns about an industry wide staff shortfall.

“We are a sector in crisis at the moment,” Ms Archer said.

“We have educators leaving the sector in droves because of pay and conduction so we really need to focus on how we can retain quality educators and get back educators who have left.

“At the moment we are looking at a 10 per cent staff shortage across our service.”

Kaitlin Louth and her daughter Amelia. Picture: Dylan Arvela

Kaitlin Louth, whose two-year-old daughter Amelia attends Big Fat Smile Dapto three days a week, said the subsidy boost would be “really great for her household situation”.

Ms Louth said she joined a waiting list when she was pregnant to secure a spot for her daughter once she turned 10-months-old.

.

The mother is hopeful the subsidy will give her the opportunity to set Amelia up for primary school.

“It‘s been a real struggle at the moment with the rising cost of living,” Ms Louth said

“This means we might be able to go out for dinner, or use the extra money to buy something for our daughter or something for Christmas.

“We might be able to afford to send her here for an extra day … Since she‘s been here her speech has been amazing, she’s learning a lot so coming an extra day would be even better for her education and get her ready to go to big school.”

Mitchell Institute data released earlier this year highlighted the booming demand for childcare places across NSW with areas like Broken Hill and Far West and Hawkesbury having more than seven children for every available childcare place.

In Kiama and Shellharbour, there are 3.48 children for every spot while in Wollongong the situation is slightly improved at 3.07 children per spot.

Ms Archer indicated the demand depended on the location and the age group, but pointed to a “significant waiting list” for children under two due to “higher ratio” demands and a “higher cost of care”.

Originally published as Federal budget 2022-23: Childcare spend ‘incredible’ despite staff shortfall