$10/DAY CHILDCARE COULD SAVE FAMILIES NEARLY $35,000 OVER 3 YEARS – ENOUGH FOR A HOME DEPOSIT

Soaring childcare and early learning costs are preventing families with young children from entering the property market.

As the major parties spruik their housing policies, advocacy group The Parenthood has analysed early learning costs and found the amount families would save from fees being capped at $10 a day is as much as a 5 per cent first home deposit on a $700,000 property.

The average out-of-pocket fee for a day of childcare is $ 48.50 [1], which adds up to $43,650 for a family with two children attending three days a week for three years.

If childcare fees were capped at $10 a day, the same families would save almost $35,000 – money that could be directed towards a house deposit.

CEO of The Parenthood, Georgie Dent said that the link between childcare costs and housing affordability is an important factor missing from the housing debate.

"High childcare and early learning costs are a significant barrier for families with young children trying to save for a home deposit, yet this issue is often overlooked in housing affordability discussions," said Ms Dent.

"The average age of first-home buyers has increased from 25 in 2000 to 36 today [2] – a time when many Australians are raising young children and facing steep out-of-pocket childcare expenses."

"Twenty-five years ago, most people saving for their first home didn’t have children or the added financial pressures that come with providing a strong start for their kids."

"Today, families with young children are caught in a difficult situation: they need two incomes to cover the cost of living and save for a home in today's market, but they can't maintain both incomes without access to affordable childcare."

"High childcare fees end up consuming the money that would otherwise go toward a home deposit, trapping families in a cycle they can't escape. Lowering these costs would give them the opportunity to break free."

"By capping childcare fees at $10 a day, families could redirect thousands of dollars into savings for a home deposit."

"Affordable childcare would help thousands of young families save for deposits more quickly, complementing proposed housing policies and creating more pathways to homeownership."

"The Parenthood is calling on all parties and candidates to commit to capping childcare fees at $10 a day for most families and making early learning free for low-income families."

“Doing so will help ensure tens of thousands of more Australian children can access the benefits of high-quality early learning, increase women’s workforce participation, boost GDP and help thousands of families realise the dream of home ownership,” Ms Dent said. 

[1] Childcare inquiry – Australian Competition and Consumer Commission

[2] The changing face of first home buyers – Investments Accelerated