The Productivity Commission’s Report on Government Services 2021 has shown child care costs are keeping parents out of employment. 

The report reveals almost 300,000 Australians are not in the labour force due to caring for children (an increase of 5.9 per cent to 296,100).  

The number of parents saying they are not working “mainly due to the cost of child care” has skyrocketed by 23 per cent (91,700 parents).

Federal Member for Blair Shayne Neumann said the report confirms that the cost of child care is preventing Australian parents from working the hours they want.

“The report shows that child care costs have increased by about 5.6 per cent from 2019 to 2020,” Mr Neumann said.

“Australians cannot get a break, with the Morrison Government itself is predicting fee increases above CPI for years to come.

“The Coalition’s child care system has failed to keep a lid on child care costs for local families.

“Only Labor has a plan to bring down the cost of child care and keep it down.

“This is an issue families raise with me regularly across Ipswich, the Somerset Region and Karana Downs area.”

An Albanese Labor Government will introduce the Cheaper Child Care for Working Families, which will: 

• Scrap the $10,560 child care subsidy cap which often sees women losing money from an extra day’s work;
• Lift the maximum child care subsidy rate to 90 per cent; and
• Increase child care subsidy rates and taper them for every family earning less than $530,000. 

Importantly, the ACCC will be tasked with designing a price regulation mechanism to shed light on costs and fees and drive them down for good.

The Productivity Commission will also conduct a comprehensive review of the sector with the aim of implementing a universal 90 per cent subsidy for all families.

“Labor’s plan for cheaper child care will reward working families and allow more second income earners, usually women, to work more and contribute to our economic recovery,” he added

“Labor will fix the Coalition’s broken child care system.”