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Family Day Care association hits out at new Child Care Subsidy rates

Nurses, paramedics, doctors and other healthcare professionals engaged in shift or part-time work are likely to be hardest hit by the $10.70 cap on the Child Care Subsidy in the Federal Government’s Jobs for Families package. That’s the message from Family Day Care Australia (FDCA), the peak industry body representing day care providers that operate out of a person’s home.

“Essentially the cap will disincentivise Australia’s most flexible form of child care by making it unaffordable for families,” said FDCA chief executive officer Andrew Paterson.

“The proposed cap subsidy system as it currently stands is not acceptable and can be improved upon.

“We need to be completely confident that family day care services, educators and those families who choose family day care are not potentially disadvantaged by the cap price. I look forward to the formal, detailed release of the government’s latest figures.”

According to figures provided by the office of the Minister for Education and Training, Senator Simon Birmingham, around four-fifths of lower income families ($0-65,710 per annum) will be better off or experience no change as a result of the Jobs for Families package. Just under one-tenth of lower-to-middle income household ($65,710-170,710 per annum)are estimated to be worse off under the new system. Upper income families ($170,710-250,000 per annum) are similarly likely to be affect, with just over nine-tenths either better off of unaffected. High income earners ($250,000-plus per annum) are the hardest hit by this new package: just over 84 per cent of these households will receive less money.

“Our objective is to better help parents who want or need to work, or who want to work more, while still supporting early childhood education,” said a spokesperson for Senator Birmingham. “More affordable access to quality child care puts the opportunity of work within reach for more families.”

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