Australian families stand to take a double hit from Labor’s proposed Child Care Subsidy changes: they will pay more in tax and their child care fees will inevitably go up.

Labor will promise the world but their track record proves they can’t be trusted to deliver.

Labor can’t be trusted to manage the economy and they can’t be trusted to keep child care fees in check.

When they were last in office, child care fees increased by more than 50%. They are following the exact same recipe. They have not learnt their lesson.

When Labor increased the child care rebate from 30% to 50% in 2008, fees “accelerated”, according to the Productivity Commission*.

As the fees blew out, the costs to the taxpayer blew out and Labor couldn’t afford to pay for their promise. In 2011 Labor had to reduce the Child Care Rebate cap from nearly $8,000 ($7,941) to $7,500 and pause indexation. They didn’t deliver.

Labor say they will crack down on child care fee increases but when last in office compliance checks fell and rorting increased.

In the two years to June 2013 there were no cancellations, no suspensions, and only two fines issued. Compliance checks actually fell from 763 to 523 – a paltry effort when compared to the Coalition Government’s 3,900 compliance checks in 2017-18.

The Coalition Government’s new child care package is benefiting nearly one million Australian families who are balancing work and parenting responsibilities.

ABS data shows that out of pocket costs for families fell by 8.9 per cent in the first nine months of our new child care package.

The 2019-20 Budget provides a record $8.6 billion for child care, including $8.3 billion for the Child Care Subsidy, which increases to nearly $10 billion in coming years – and we can afford to provide record funding without increasing taxes by hundreds of millions of dollars.