Relief doesn’t go far enough
Mum says childcare subsidy puts hold on career
A FAR Northern couple is being forced to reconsider having a third child and grow their careers due to cost of living pressures and a childcare subsidy that doesn’t go far enough despite the new federal government’s efforts.
East Trinity mum Jessika Ayres receives a 50 per cent childcare subsidy for each of her two children but has still paid more than $24,000 in childcare fees this year. The financial pressure is pushing her kids back home from care, and keeping her from advancing her career as quickly as she’d like.
“I love my job, but it’s barely worth me going back to work now,” Ms Ayres said.
“I didn’t want to stunt my career too much, but I’ve still had to reduce my hours to pull them back from time in care. It just wasn’t affordable.
“Our kids love it – they’re very social. But, childcare has been a big eye-opener for us, money-wise.”
The childcare subsidy will change in 2023 so that all families will have their rate increased as long as their total income is under $530,000. Families earning up to $80,000 will be refunded 90 per cent of their first child’s fees, but that proportion will decrease one per cent for every extra $5000 earned.
Ms Ayres wants to see the subsidy flipped to favour families who are most willing to re-engage with the economy once their children are ready to enter full-time care, in order to further incentivise greater return to work.
“It seems backwards to me. I don’t think it’s fair that because I want to return to work and continue my career that I should be penalised,” she said.
“Parents trying to return to work should be rewarded for contributing to society.
“We’re thinking about a third child, but we’re reconsidering because of the cost of living. To have another one but also aim to return to work does not seem viable because of the cost of childcare.”
The federal Labor government’s October budget attempted to encourage parents back into the workforce by also allowing families earning a combined income of between $356,756 and $530,000 to have more than one child’s care subsidised.
Mount Sheridan Early Education Centre manager Emma Smith said the changes, due to come into effect in July, will make it viable for more working families to access childcare.
“It is better now for those earning higher incomes,” Ms Smith said.
“Allowing those children to have access to education facilities, getting the education they need and developing their social skills before they go to prep is paramount.”
The changes to the subsidy will also benefit Indigenous families, who will be entitled to a minimum of 36 hours of subsidised childcare per fortnight regardless of the hours parents work.
“It will allow them more opportunity to have their children in care so they can start studying or help them if they’re looking for work,” Ms Smith said.
“We offer nine, 10 or 12hour sessions, so they could now come two days a week instead of one day a week, which would double their child’s exposure to childcare.”