Productivity Commission confirms large rise in childcare fees

01/12/11

A final Productivity Commission report today confirmed the worst possible pre Christmas news for Australian families already labouring under increasing cost-of-living pressures.

The report expects that, due to new Gillard Government reforms on childcare, in 2012…

- Childcare fees will rise by up to 15%

- Some parents will be forced to quit the workforce as a result.

- Not enough qualified staff will be available to meet new Government benchmarks.

Shadow Minister for Childcare, Sussan Ley, says “this report tells us childcare centres face three options.

Push up fees at a time when parents cannot afford them, cut places at a time when demand has never been higher – or close down, because they won’t have the staff to cope”.

“Thousands of mums and dads will also now be wondering whether they can actually afford to go and earn a second household income next year”.

“Electricity is up, grocery prices are through the roof, petrol, education, the rent and now childcare. When is this madness under Labor going to end.”

“We have been warning the Government these rises would occur for well over a year.

They must delay next month’s reforms to ensure parents and childcare operators can absorb the changes without this financial pain”, Ms Ley concluded.