Labor's win is a huge triumph for the Childcare Industry
Updated: May 27
96% of Australian families will be better off under Labor's childcare reforms, that's over 1.26 million families
Under the new Labor Government, it has been promised that the cost of childcare will be reduced and subsidised, making it easier for working families to access childcare services.
Labor has guaranteed:
The maximum childcare subsidy rate will be lifted to 90% for families for the first child in care.
Increased childcare subsidy rates for every family with one child in care, earning less than $530,000 in household income.
Maintaining higher childcare subsidy rates for the second and additional children in care.
Extending the increased subsidy to outside school hours care.
Labor will invest approximately $5.4 billion to make childcare cheaper, starting from July 2023. The ACCC will be appointed to design a price regulation mechanism to drive out of pocket costs down for good. Additionally, the Productivity Commission will conduct a comprehensive review of the sector with the aim of implementing a universal 90% subsidy for all families. Finally, the Albanese Government will develop and implement an Early Years Strategy to create a new integrated approach and develop a program of action.
Over the past 12 months, childcare costs soared by 6.5%. This is almost double the rate of inflation. The fees of childcare have increased 41% since the Liberals came to Government. At present, the cost of early learning has been an issue for working families. With almost 73,000 families locked out of the childcare system because it is unaffordable.
With more families able to attend childcare, there will be a greater demand for high quality childcare services across Australia. Now could be a great time for operators and investors to consider the benefits of developing a childcare centre with the specialists in childcare centre design, development, acquisitions and leasing.