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THE PARENTHOOD LAUNCHES ONLINE TOOL TO HELP PARENTS CALCULATE CHILD CARE SAVINGS

The Parenthood has built an online tool to let parents and carers easily calculate how much they could save on early learning and child care under Labor’s proposed new package. 

For example, a family earning $150,000 per year with a child in a long day care three days a week with a daily fee of $120 per day would save $3,120 a year - or $60 a week - under Labor’s plan. 

www.theparenthood.org.au/childcare_estimator

Executive Director of The Parenthood, Georgie Dent, said the exclusive online calculator shows parents how much extra money they would save if Labor’s proposed working families child care changes were introduced. “Labor says up to 97 per cent of families would be better off under its working families child care package so we’re inviting people to use this new online calculator and find out exactly how it would impact their family budget,” she said. “The cost of child care in Australia is very expensive and every dollar counts in the family budget when you have young children. 

“Putting money back in the pockets of working families is a significant part of getting our economy moving again and boosting women’s workforce participation.

There are so many women who don't work more than three days a week because that is the point where the cost of care becomes so expensive. This commitment from Labor to reform early learning and child care is exactly the kind of bold policy Australia needs to pursue to emerge from the Coronavirus pandemic as an equitable, sustainable economy and community.   

“The most effective way to credibly address the ‘pink recession’ and increase the capacity of women to engage in paid work is to provide universal access to high-quality early learning and care.

There is a massive opportunity for the Federal Government to match this child care commitment and work towards implementing universal, quality early learning. Investing more in early learning education and child care would pay dividends in supporting more women into paid work, growing employment in a female-dominated industry and giving children the best start to life possible.

“Grattan Institute modelling has shown spending $5 billion on universal, high-quality early learning delivers  $11 billion in increased economic activity by helping women back into the workforce. Few other opportunities for government can deliver such strong economic returns, let alone the priceless benefits for children, families, business and our society,” she said. “Between 0 and 5 are the most richly formative years in any child’s life which is why giving young children access to high quality early learning is so important.” 

 

BACKGROUND
How do families fare under Labor’s proposed Working Families Child Care Boost
(Assumptions: From July 1 2022, centre open for 11 hours, one child, family meets the activity test)
Child in care 3 days a week - $p/week better off (rounded to nearest $5)

Income $ p.a/ Daily Fee $ per day

$100

$120

$140

$160

60,000

15

15

20

20

80,000

20

25

30

30

100,000

30

35

40

40

150,000

50

60

70

70

200,000

45

55

65

65

250,000

15

20

25

25

300,000

30

35

40

40

How to read this table: A family earning $150,000 pa in July 2022 with a  child in a long day care centre for three days a week with a daily fee of $120 per day would be $60 a week better off. The annual cap on Child Care Subsidy on incomes above $190,000 would be removed. But the cap on subsidy for fees above $12.70 per hour would remain.

Child in care 5 days a week - $p/week better off (rounded to nearest $5)

Income $ p.a/ Daily Fee $ per day

$100

$120

$140

$160

60,000

20

25

30

30

80,000

30

40

45

45

100,000

45

55

60

60

150,000

75

90

105

105

200,000

90

150

210

210

250,000

45

120

145

145

300,000

45

55

80

80

www.theparenthood.org.au/childcare_estimator