PROMISE OF FREE CHILDCARE FOR 880,000 FAMILIES

Promise for 880,000 families to save $1200 per child

CHILDCARE will be free for hundreds of thousands of lowincome families under a Labor plan to boost taxpayer-funded subsidies, if elected on May 18.

More than 880,000 families will be an average $1200 a year better off per child with Labor planning to spend $4 billion to further reduce the out-ofpocket costs for childcare.

The latest election sweetener will see almost 372,000 families earning up to $69,000 a year receive 50 hours a week of free childcare by increasing the government subsidy from 85 per cent to 100 per cent of childcare costs.

More than 150,000 families with a combined income of between $69,000 and $100,000 will receive a rebate covering 85 per cent of fees, delivering an additional $27 a week.

The subsidy will gradually taper down to 60 per cent for families earning a combined income of $174,000, up from a current 50 per cent subsidy.

While families on low and middle incomes will secure more assistance, Labor will keep the current subsidies – introduced in July last year – of between 20 and 50 per cent for families earning between $174,527 and $351,248 a year.

Under both Labor and the Coalition’s package, families on more than $351,248 will get no government assistance.

Labor says its higher subsidies will deliver cheaper childcare for every family earning less than $174,000.

Despite raising concerns about the impact of the Coalition’s activity test for parents, Labor will keep the eligibility criteria which requires both parents to work, study or volunteer for at least eight hours a fortnight to access rebates.

Labor will also keep the Coalition’s annual cap, which means families earning more than $185,710 are limited to a $10,000-a-year cap on subsidies.

If elected, Labor will boost handouts from July 2020 to eligible families using centrebased care, family daycare, after school and holiday care.

Labor will also ask the consumer watchdog to probe excessive fee increases and investigate ways to cap fees as it has promised to do with private health premiums.

Bill Shorten, who will unveil the package in Melbourne today, said “Labor is choosing cost of living relief and early education investment”.