Qld childcare fees outstrip federal subsidy in these 13 suburbs

Queensland parents are bracing for childcare cost increases of up to 10 per cent, with centres in at least 13 suburbs charging more than the hourly subsidy rate cap.

Queensland parents are bracing for childcare cost increases of up to 10 per cent, in a spike that could swallow up savings made from an upcoming federal government subsidy.

Parents of young children will save an average of $1700 a year on childcare through a federal government scheme which starts next month.

While the changes to childcare subsidy are a win for parents, it has coincided with individual centres announcing they’re hiking rates some by more than $100 a week per child.

The Courier-Mail has seen letters to parents whose children go to Brisbane centres informing them their fees are set to spike, including several that upped fees by 9-10 per cent.

“We are hopeful that the increase in rebates provided by the federal government will soften or fully negate the effect of the rates rises for the families that utilise our services,” a centre’s email to parents read.

The centre reported its most significant cost spike was wages, plus interest rates and expenses like food, petrol, cleaning and supplies.

Another centre management wrote to parents confirming its new fees would kick in from July 10 with a new daily fee of $135.

“For the majority of our families, these increases will be offset by the changes to the subsidy.”

Some daycare centres in at least 13 Queensland suburbs are charging more than the hourly subsidy rate cap of $13.73 set by the federal government.

New data revealed some of the suburbs included Auchenflower, Bracken Ridge, Brisbane City, Harristown, Highfields, Longreach, Morayfield, Nundah, Paddington, Peregian Springs, Red Hill, Richlands and Westbrook.

Federal Education Minister Jason Clare, in a visit to Brisbane to spruik the subsidy, said the majority of centres were cap compliant and that it would benefit 284,000 families.

He said the funding injection would reduce the cost for parents across the country, making it “cheaper than it otherwise would have been”.

For a family earning $120,000 with one child in care – their childcare costs will be about $1700 a year less than they otherwise would be.

It comes amid an Australian Competition and Consumer Commission review looking into childcare labour costs and availability, price changes and compliance costs.

“In addition to this change we have the ACCC review which is looking at the caps, the way they work, the cost that childcare centres bare and the reforms we can make for the sector,” Mr Clare said.

The ACCC’s interim report is due by June 30 with the final report to be delivered on December 31.

Originally published as Qld childcare fees outstrip federal subsidy in these 13 suburbs