Child care and its crippling effects on the family budget has emerged as one of the big issues of the July 2 federal election. Babyology is taking a closer look at what both major parties are promising families in the grab for votes.
Labor revealed its $3 billion childcare package on the weekend. For families crippled by child care fees, the Labor policy promises a childcare rebate cap increase within six months of being elected – two years before Liberal reforms take shape.
Labor leader Bill Shorten promises a cap increase to $10,000 for those earning less than $150,000 a year if Labor wins the election, while the Liberal government will get rid of the cap for families on incomes of $185, 710 or less.
Another key feature of the Labor policy includes a 15 per cent rise in the means tested Child Care Benefit (CCB), which Shadow Finance Minister Tony Burke says will leave low to middle income families up to $30-a-week better off.
Let’s break it down even more.
What Labor promises
- A $3 billion childcare package funded by the existing budget and ready to go by January 1
- $160 million to tackle childcare and after-school care waiting lists in high demand areas
- A 15 per cent rise in the means tested Child Care Benefit (CCB), leaving low to middle income families up to $30-a-week better off
- A Childcare Rebate cap increase to $10,000 for those earning less than $150,000 a year
- Funds to crack down on unjustified childcare price increases and to support flexible Family day care, improve services to Indigenous and remote children, and to invest in the education of childcare teachers
What Liberal promises
- A $40 billion Jobs for Families childcare package aimed at simplifying access to financial help
- A Child Care Subsidy to encourage stay-at-home mums back to work will replace the current Child Care Benefit and Child Care Rebate with a single means-tested payment by July 2018
- The Childcare Rebate Cap will no longer apply for families on incomes of $185,710 or less per year, and the cap will increase to $10,000 for families earning more than that
- Nanny pilot program extended until June 30, 2018 for families who struggle to access mainstream childcare, such as shift workers
- Cuts to prevent “double dipping” by getting employer paid parental leave as well as government funds remain in the plan
For more on what the Turnbull government is offering families, check out Babyology’s breakdown of the Federal Budget 2016 for families.
(via The Guardian)