Budget 2020: Childcare subsidy ‘a win in my book’

Anthony Albanese’s $6.2bn childcare funding package will save families up to $2900 a year as Labor puts female workforce ­participation at the heart of its agenda.

‘Women aren’t working when they could,’ says Alison van den Dungen, with Arjen, 4, and Johannes, 6. Picture: Aaron Francis

Anthony Albanese’s $6.2bn childcare funding package will save families up to $2900 a year as Labor puts female workforce ­participation at the heart of its agenda.

Under the Opposition Leader’s plan, unveiled in his first budget reply speech on Thursday night, the $10,500 childcare subsidy cap for families earning more than $189,000 will be scrapped.

The maximum subsidy rate, which applies for families earning less than $69,000, will be lifted from 85 per cent to 90 per cent, with Labor stating a long-term aim of applying the maximum subsidy rate for all families.

All subsidy rates will be immediately increased under a Labor government for families earning less than $530,000, with 97 per cent of families saving between $600 and $2900 a year.

Mr Albanese said working mothers should be able to afford childcare for their children.

“Women are the key to kickstarting our economy again. In the worst recession in 100 years, we have to make sure women aren’t forced between their families and their jobs.

“We can’t just let fees and out-of-pocket costs keep skyrocketing,” he said.

Opposition early education spokeswoman Amanda Rishworth said there were economic benefits form increasing female workforce participation.

“Women aren’t working when they could, and families keep struggling to pay bills,” she said.

Melbourne mother of two Alison van den Dungen welcomed subsidies to make childcare more accessible for families and parents to return to work.

She has a four-year-old in childcare, and said it was dif­ficult for parents to balance work with the cost of childcare. “That’s a real trade-off that a lot of families have to make and sometimes that’s a sacrifice.”

Ms van den Dungen said some workplaces were also less flexible in work arrangements.

“[You think about] what it’s going to mean for your career and being out of work for an ­additional three years.

“Anything governments can do to encourage more women back into the workforce is a win in my book,” Ms van den Dungen said.

Her four-year-old, Arjen, is in childcare five days a week while her elder son, Johannes, six, also went to childcare before starting prep.

“In the end, it came down to work opportunities and I had to knock too many work opportunities back by not being able to work full-time,” she said.

“[But] not every family has the ability to set aside the budget.”