How to lower childcare costs

THE nation’s largest nonprofit childcare provider has called on all levels of government to reduce the cost of rent for childcare facilities as a way to ease prices for parents.

Goodstart Early Learning, which runs 10 centres throughout Darwin and thousands nationwide, said while wages are the highest cost burden for centres, rent comes in second, and looking at innovative ways to reduce this could ease price gouging for families.

THE nation’s largest nonprofit childcare provider has called on all levels of governments to reduce the cost of rent for childcare facilities as a way to ease prices for parents.

Goodstart Early Learning, which runs 645 child care centres around the nation, said while wages are the highest cost burden for centres, rent comes in second and looking at innovative ways to reduce this could ease the weekly price gouging for families.

In short, parents could get cheaper childcare if rents for centres were subsidised.

“Governments, both state, local and federal need to do more to free up sites – particularly in inner city areas where childcare is so expensive because of rental costs,” Goodstart advocacy manager John Cherry said.

“One of the key things that is driving cost hikes is rent.”

Mr Cherry said while some councils had already begun providing reduced rents, more needed to be done by state and federal governments and other councils to reduce costs.

Lower rents would mean fees for centres, in some metro capitals up to $200 a day, would be cheaper.

His call was echoed by Senator Jacqui Lambie, who said significant reform was needed to reduce costs to parents.

“The government tinkered around the edges of childcare earlier this year but when the changes kick in, July, 2018, it will only offer little relief,” Senator Lambie said.

“Subsidising rent for child care centres ... is worth considering to reduce costs.”

Education Minister Simon Birmingham said the government was working hard to provide a better system for families and $2.5 billion in support was on the way.

He dismissed the idea of subsidised rents and said the system was already being overhauled.

“Our focus is on how to support hardworking Australian families with the cost of child care, not to boost the healthy profits enjoyed by many child care businesses,” Senator Birmingham said.

Labor’s education spokes- woman Tanya Plibersek also said reducing rents should be considered.

“There’s no doubt the cost of property and rents is driving fees up in many areas,” she said. “Of course we should look very seriously at how all levels of government can invest in community and not-for-profit services to make early education affordable again.”

The Sunday Territorian revealed last week close to 40 per cent of families are paying equal to or more than their mortgage on childcare fees with some having to resort to using their credit card to pay to have their children cared for while they go to work.

“One of the key things that is driving cost hikes is rent” JOHN CHERRY GOODSTART