Households with young children will be under increasing financial pressure from the combined impacts of the 0.5 per cent increase in interest rates announced by the Reserve Bank of Australia today and the rising costs of early learning.
Out-of-pocket costs for early learning in Australia are up about 14.7 per cent since May 2019.
The Parenthood Executive Director Georgie Dent said, “Australian families pay some of the most expensive early learning fees in the world and, with a further interest rate rise announced today, the future doesn’t look any easier.
“For most working families, after housing, early learning is the biggest source of financial pain, and it is simply unaffordable and unsustainable.
“Today’s interest rate hike will increase the burden on family budgets and leave some parents with little option but to reduce childcare hours or cut it out altogether.
“Reducing the cost of high-quality childcare will help more children get a good start in life. It will free up family budgets, help address inflation and support more parents to re-enter or stay in the labour market.
“A better deal for families was key to the 2022 Federal Election.
“The Parenthood urges Federal Government action on early learning reform in the upcoming October Federal Budget. In particular the staffing crisis in early learning needs to be recognised and addressed as a matter of urgency. Staff vacancies in the sector are at record levels and it’s absolutely impacting the ability of families to access the early learning and care they need.
“We’d also like the NSW Government to use its upcoming budget for greater investment in making childcare more accessible and affordable,” Dent said.
