Weighing up cost of childcare burden
‘The savings we are making we’re putting into our mortgage offset account’ Mum of two Emilia Rossi
MILLIONS of Australians are anxiously waiting to see if the Federal Government will extend free childcare beyond June and help save them hundreds of dollars a week.
Since April parents have been able to lessen the financial pain of paying for childcare, which remains one of the biggest cost burdens on working Australians. The temporary measure was only ever designed to be rolled out for the short-term, with childcare staff wages also supplemented by the government’s $1500 JobKeeper payment.
Mother of two Emilia Rossi, 37, who is on maternity leave from her part-time role as a market strategist, said the high costs of childcare affected her weekly budget.
Her son Hercule, 2, goes to childcare three days a week, usually costing Ms
Rossi $90 in out-of-pocket expenses a day.
“It’s a bonus to have free childcare,” she said. “The savings we are making we’re putting into our mortgage offset account and we’re not spending it.
“I don’t feel like this will be a long-term situation but it will disrupt the childcare system, because we can test to see if this is viable and sustainable for the childcare centres as well.”
The costs of childcare vary depending on whether or not parents are eligible for the Child Care Subsidy, which reduces the costs outlaid.
Super fund HESTA has 860,000 members, of whom 80 per cent are women, and chief executive officer Debby Blakey said now was an important time to reassess childcare costs.
“We shouldn’t miss the opportunity to reform the childcare system; it’s so critically important to boosting women’s participation in the workforce and ultimately their retirement incomes,” Ms Blakey said.
“In Australia women still retire with about 40 per cent less than men.”
Financial comparison website RateCity’s spokeswoman, Sally Tindall, said parents should reassess their financial status to plan for when childcare costs return.
“Find out what assistance you’re eligible for and, if necessary, update your family income with Centrelink so you can get access to as much assistance as possible,” she said.
“It’s also worth talking to your childcare centre about any financial problems you’re facing.
“Some daycares can offer shorter days at a reduced cost.”