Calls to speed up childcare changes ahead of federal budget

Many parents are hoping pending changes to childcare subsidies announced in last year's budget will lower their expenses.

Children play with toys at a preschool in Canberra, Wednesday, May 28, 2008. (AAP Image/Alan Porritt) NO ARCHIVING

File image. Source: AAP

As Tuesday's budget looms, once again there is expected to be a strong focus on families.

Last year, the federal government announced it would replace its Child Care Benefit and Rebate with one means-tested Child Care Subsidy.

Under the changes, families with a total combined annual income of less than $65,000 would have 85 per cent of their childcare costs subsidised, with no cap on subsidies.

Average income earners will also have no cap, and - according to the government - will save $1500 a year as a result.

And families earning more than $180,000 would have the cap on rebates increased from $7500 to $10,000.
Budget childcare families
Changes to childcare funding announced in last year's federal budget are slated to begin in July 2017. Source: SBS
Lobby groups initially welcomed the changes, but said they won't come in for another two financial years.

The Australian Childcare Alliance's Paul Mondo said that means families will continue to suffer financially.

"Realistically, parents need support now and the parents are hurting now,” Mr Mondo told SBS News.

“Waiting another 12 months is still going to be really challenging and difficult.

"Recognising the current predicament of the families is vital, and some immediate relief for those families would be greatly appreciated."

One family struggling with the cost of childcare is the Pandyas, based in Sydney’s lower North Shore.

Weekend is a time for fun and games at for young couple Joti and Raj, and their four-year-old son Ishan.

But for the busy parents, who both work full-time, their activities are severely limited on weekdays.

Mr Pandya said during the week Ishan is placed in daycare, which he described as a costly exercise.

"You're looking at spending over $100 a day just to put your kid in childcare, full time daycare," he said.

"It's a bit on the highside. That's at least $500 a week you are spending just on childcare."
Budget childcare families
The Pandya family are preparing for a second son in July, and have called for a swift and simple approach to assist with their childcare fees. Source: SBS
The Pandyas receive an annual childcare rebate of $7500, which usually runs out after just six months.

They are also expecting their weekly childcare bill to double, with the birth of their second son in July.

Mrs Pandya said that extra expense may force her to quit her job.

"If we had to have two children in childcare, it probably wouldn't be feasible for one person to work because my salary would be just paying for childcare,” she said.

“What do you do? You either put them in childcare or you just can't work.

"You can't really get part-time work because it's very difficult, one that works around schooling hours."
The childcare changes were scheduled to begin in July 2017, but that is not set in stone, as Treasurer Scott Morrison could introduce changes to the system in Tuesday's budget.

Mr Pandya said he just wants a simple approach that reduces the financial strain.

"If the government could make it a bit more easier, I mean standardise some of the cost," he said.

"For example if you live within a certain perimeter of the city it should be 'this much', if it's closer it's 'this much', etc.

“There's gotta be something more simpler, a much more simpler way of doing it.

"Because if people find childcare so expensive, like I said, we just don't bother going to work. We'd rather stay at home looking after our kids."

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3 min read
Published 1 May 2016 7:54am
Updated 2 May 2016 6:05am
By Omar Dabbagh


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