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[Astrid]

Kate Ellis reveals 150,000 families face childcare pain in Budget
by: SAMANTHA MAIDEN NATIONAL POLITICAL EDITOR
From: The Sunday Telegraph May 19, 2013 12:00AM


Minister for Early Childhood and Child Care Kate Ellis with Katelyn at Jacky's Family Daycare, Kilburn.

CHILDCARE Minister Kate Ellis has revealed up to 150,000 families will be stung by the Budget's decision to freeze a $7500 cap on childcare relief for half a decade.
For the first time, the Gillard government has admitted the number of families who face being cut off from the childcare rebate will double from 75,000 over four years.

Despite rejecting means testing for childcare relief, the changes will operate as a defacto means test because high income families with two incomes living in Sydney and Melbourne who can pay up to $500 per week or $26,000 per annum in childcare costs are most likely to be hit by the childcare rebate cap currently.

The decision to freeze the amount parents can claim for six years will leave thousands of parents facing higher childcare costs.

While the government has argued the cap currently hits few families, new departmental figures confirm 150,000 families will be stung by the claims cap by 2017.

After parents spend more than $15,000-a-year per child on childcare they secure no fee relief under the 50 per cent rebate.

By 2017, the cap would hit 15 per cent of families with children in childcare who would be left to pay the full cost of childcare without relief.

Treasurer Wayne Swan announced the plan in Tuesday's Budget and families are likely to face the childcare freeze even if Tony Abbott is elected. He has said he will accept most of Labor's $43 billion in savings and tax increases.

"The rebate will continue to be not means tested," Ms Ellis said. "When they were last in government, the Coalition offered families only a 30 per cent rebate with a cap of just $4354.

"The overwhelming majority of Australian families - nearly 90 per cent - receiving the child care rebate will not reach the cap in 2014-15."

Most families do not have their children in childcare five days a week and as a result the average rebate amount claimed by families even by 2017 will be just $3,648 per family.

"What families should be most worried about is Tony Abbott's publicly stated plans to have child care fee assistance designed by the Productivity Commission which has previously recommended that the rebate be means tested."



Read more: Kate Ellis reveals 150,000 families face childcare pain in Budget | News.com.au

[wysiwyg]

Thanks for posting that Astrid.

All these figures assume that everyone is doing what they want to in regards to childcare and working - the problem is it is all so short term the impact is being looked at in terms of what families are currently doing, which isn't necessarily what they want to do - or in terms of really what the government should want them to be doing in the long-term.

And this

"What families should be most worried about is Tony Abbott's publicly stated plans to have child care fee assistance designed by the Productivity Commission which has previously recommended that the rebate be means tested."

Really annoys me - (I am not a Tony Abbott fan and highly unlikely to vote liberal) but trying to suggest that we should all just suck it up and stick with what we have because any changes implemented might be worse is just scare mongering - any changes will be worse for some and better for others no doubt - but I would like to see them consistent with some sort of long term plan. (If other plans are worse for me so be it but I do like to see a bit of logic behind these things)

I am actually surprised that the numbers they are suggesting are so low (although I suppose if you look at the figures from the Grattan report about numbers of women working maybe is less surprising) - round here even with 40% CCB you would hit the cap at just three days a week in childcare.