PM’s comment on capped-price childcare gives families hope on mortgage relief, cost-of-living

Paying the mortgage off faster, having more to spend on groceries and finally taking a family holiday are some of the things families are looking forward to if early learning and childcare fees are capped at $10-a-day.

Last week the Prime Minister said a capped-price for early learning childcare is something his government would enact if elected for a second term. 

Members of The Parenthood’s and Thrive by Five’s online communities have celebrated the news, revealing how much it would save them. 

“$10-a-day early learning would be a game changer for families trapped by both the cost-of-working and the cost-of-living crisis,” said CEO of The Parenthood, Georgie Dent.  “We have received so many comments from parents who would save tens-of-thousands of dollars.

“They are telling us it would allow them to pay their mortgage off faster or finally accumulate enough for a deposit to buy a home.

“They wouldn’t worry so much about every dollar they spend at the supermarket, they would be able to give their children the opportunity to do extracurricular activities and finally take an overdue family holiday.” 

An Australian couple on average wages with two children spend 16 per cent of their after-tax household income on childcare fees. The OECD average is 9 per cent. 

Last year, the cost of early learning and childcare grew faster than the cost of any other good or service in the consumer price index, behind only tobacco and insurance. 

Ms Dent said capping out-of-pocket fees at $10-a-day would rein in fee increases.

“The government has made some really important and impactful reforms to make early learning and childcare more affordable and accessible, including increasing subsidies and who is eligible for them.

“But with the majority of early learning and childcare centres run as for-profit businesses, the savings parents get from increased subsidies ultimately get eaten up by these providers putting their fees up. 

“The funding model needs wholesale reform, and it is fantastic to hear the Prime Minister say this is part of his vision if elected for a second term. We are calling on all parties and candidates contesting the Federal Election to make the same commitment. 

“A $10-a-day cap on out-of-pocket fees for all parents, and fee-free early learning for low-income households would deliver young families in Australia tangible cost-of-living relief.”