Labor’s 90 per cent childcare subsidy plan will cost taxpayers billions as rich benefit
Opposition Leader Anthony Albanese first committed to an “aspirational policy” of a 90 per cent childcare subsidy for all families – including those who make more than $500,000 per annum, in his budget reply in 2020.
Without detailing the costing, Mr Albanese said the goal would be examined by the Productivity Commission to test for viability, noting that cheaper childcare was a key economic measure.
But, new government analysis reveals a universal 90 per cent child care subsidy would rack up $213 billion in childcare spending over the next decade, $63b more than current government policies – which cuts off subsidies for families earning more than $354,305 a year.
Labor’s committed policy of extending the subsidy to families with incomes of up to $530K would cost an extra $29b over 10 years, but expanding to a 90 per cent subsidy for all families would add an additional $34b to the taxpayer receipt.
Under Labor’s proposal, all families sending one child to daycare five days a week would pay just $2662.5 in a year, while taxpayers would foot $23,962.50.
Families sending two children to daycare three days a week would pay $3195, while the taxpayer fronts up the other $28,755.