Childcare changes more likely to hit low to middle-income families

Canberra Times
February 11 2018

The major losers under the Turnbull government's revamp of childcare payments will be low to middle-income families, departmental figures show.   

Figures obtained under Freedom of Information legislation show 161,003 low to middle-income families will be worse off under the new system, and a further 15,692 families will receive no assistance at all.

The government's changes to childcare payments begin on July 1 this year and roll two payments - the Childcare Rebate and the Childcare Benefit - into one payment.

Of the 1.147 million families currently receiving some form of assistance, 810,944 families across all income groups will see their payments increase, and a further 57,800 families will see no change to their payments.

Another 249,275 families across all income groups will receive less money and 29,585 will no longer receive any assistance.

Of those families who will receive less assistance, 88,362 have a combined yearly income of up to $65,710 and a further 88,334 earn between $65,710 a year and $170,710 a year, the departmental figures show.

Around 2,300 families earning up to $65,710 a year will no longer receive taxpayer funded assistance and 13,391 families earning between $65,710 a year and $170,710 a year will have their payments stopped.

Around 88,270 families earning more than $170,710 a year will see their payments decrease and a further 13,894 families earning above that level will no longer receive payments.

Labor's childcare spokeswoman, Amanda Rishworth, says the changes will lead to children from low socio-economic backgrounds spending less time in early education.   

"There are some families who won't be able to afford early education and care and their kids will miss out. The government is ignoring the benefits of early education and they are making this about workforce participation," Ms Rishworth said.   

Families who receive less assistance are likely to do so because they do not meet the new activity test which requires people to work or study for a certain number of hours a week in order to qualify for assistance.

The government believes the new test will lead to more people working or studying for a greater period of time each week.

Some families will receive less assistance because the new system is also linked to how much childcare centres charge for their services.

Childcare and Education Minister Simon Birmingham says the new system will encourage more than 230,000 families to work or study more.

“Our plan supports families that need it the most by better targeting subsidies to people earning the least and to families working the most. Is Labor saying they want to allow families to access taxpayer subsidies for child care when they aren’t working, studying, volunteering or even bothering to look for a job?" Senator Birmingham said.

“We make no apologies for increasing childcare subsidies to those Australians working the hardest but doing it the toughest, to allow them to work more hours or take more of their wage home each week.”

Ms Rishworth is redrafting the Labor Party's childcare policy ahead of the next election and would not say whether or not the new activity test would be maintained.

aquascoot

Clearly whitenut is looking to a BS piece of fairfax left wing rubbish.

Even for a middle income earner childcare costs make working marginal, if you don't earn much then childcare is obviously not for you .... go do the numbers.

Its very simple if you earn more money you have more life choices.

aquascoot wrote on Feb 12^th, 2018 at 7:39am:


Yes most left wing nutters think the job of government is to compensate their incompetent lazy behinds for achieving nothing.

With childcare it has to cost something ....... say some one on a 1000 / week which in Sydney is well below average  take home is about 42K or 800 / week.

Rent in Sydney for a 1 Bdr flat around Sydney is 400 / week minimum .... out west say in the Penrith area its 200 / week
Utilities would be minimum 50-100/week ....... groceries about $150 / week ....... where is all the money someone in this income bracket could pay to childcare ?
I assume working single mothers are using relo's for child care even out at Penrith it looks like at least $100 / day.

Its a nonsense argument there is no way in the world a low income person could afford even half of what it costs with or without a subsidy !

Low income earners can not also afford a Lexus or Volvo let alone a real premium car ..... more money = more life choices !

stunspore wrote on Feb 12^th, 2018 at 12:10pm:


Depends what you call rich BS Shorten calls middle income earners rich.

My measure is if you have liquid assets of $1million your rich !

Tax cuts are a combination of electioneering and economic stimulus something the ALP often fail to deliver we are still waiting on Keatings iron clad promised tax cuts !
Middle to high income earners pay the vast mojority of income tax and will benefit more from tax cuts !

Perhaps a lowering of the income level at which you receive government largesse for childcare etc would start the ball rolling on a reduction of the costs of living.... it's no good whining about 'high' and 'non-competitive' wages when the costs of living are sky-rocketing....

Start with reducing the costs of living by reducing subsidies that sustain higher costs, then begin the discussion about income levels.... ACROSS THE BOARD (and the boards)...

aquascoot wrote on Feb 12^th, 2018 at 1:02pm:



Lol how do you measure that

RightSaidFred wrote on Feb 12^th, 2018 at 3:33pm:


As they say in the social science and science business - I stand by my opinion.....

You got a problem with Money Divides?  Speak up... you couldn't hit a messenger with a shotgun at ten paces.....

aquascoot wrote on Feb 12^th, 2018 at 1:02pm:


aussie farmers are still subsidised.  just not as much as some compared to other countries.  But it isn't a big problem since we are selling the farms to overseas.