Childcare Subsidies Could Be ‘Eroded by Fee Increases’

Childcare subsidies from the government may be “eroded by fee increases,” over time, an Australian Competition and Consumer Commission (ACCC) inquiry reveals. The inquiry found child care fees have increased at a quicker rate than inflation and wages in Australia despite the government changing child care subsidy rates in July. “Childcare fees across all services have grown faster than inflation and wages since the introduction of the child care subsidy,” the report (pdf) says. However, the report also found government subsidies from July 2023 have cut the “out of pocket expenses” families are paying for childcare services. The changes included higher childcare subsidies starting from 90 percent for families earning below $80,000 (US$53,000)....