Review of childcare system

PARENTS will be asked to deliver their verdict on childcare assistance, tax breaks for nannies, on-site child care at work and after school care in the biggest review in two decades.

Declaring the nine-to-five model for child care out of touch with the modern workplace, Prime Minister Tony Abbott will today announce a Productivity Commission inquiry into child care.

But the inquiry will ask for the fresh ideas to remain within the ‘‘current funding parameters’’ of the $5 billiona-year childcare rebate and childcare benefit, raising fears the commission may consider means testing of the 50 per cent rebate.

Long day care, family day care, after school care, nannies, au pairs, child care at work and mobile child care will be canvassed by the review which will report by October next year.

Mr Abbott said the Government was determined to have flexible, affordable and accessible child care, including for shift workers and families in the bush.

‘‘ Our childcare system should be responsive to the needs of today’s families and today’s economy, not the five-day 9am-5pm working week of last century, more flexible, affordable and accessible,’’ Mr Abbott said.

‘‘We want to ensure that Australia has a system that provides a safe, nurturing environment for children, but which also meets the working needs of families.’’

Childcare Minister Sussan Ley said the Government had no plans to consider means testing for the childcare rebate but wanted the commission to conduct a root and branch review of the system.

‘‘I am not attracted to the idea of means testing at all but this is about the commission looking at everything,’’ Ms Ley said.

‘‘The childcare rebate is in the terms of reference,’’ she said.