Budget expected to deliver Childcare payment changes

SBS World News Radio: As Tuesday's Budget looms - once again there is expected to be a strong focus on families.

Budget expected to deliver Childcare payment changes

Budget expected to deliver Childcare payment changes

Many parents are hoping changes to childcare subsidies will lower their expenses.

Weekend is a time for fun and games at the Pandya household, for couple Joti and Raj and four-year-old son Ishan.

But for the busy parents, who both work full-time, their activities are severely limited on weekdays.

Raj says during the week Ishan is placed in daycare, which he describes as a costly exercise.

"You're looking at spending over $100 a day just to put your kid in childcare, full time daycare. So it's a bit on the highside. So you know that's at least $500 a week you are spending just on childcare."



The Pandyas receive an annual childcare rebate of $7,500, which usually runs out after just six months.

They're also expecting their weekly childcare bill to double, with the birth of their second son in July.

Joti Pandya says the extra expense may force her to quit her job.

"If we had to have two children in childcare, it probably wouldn't be feasible for one person to work because my salary would be just paying for childcare. What do you do? You know, you either put them in childcare or you just can't work. I mean, you can't really get part-time work because it's very difficult, one that works around schooling hours."

Last year, the Federal Government announced it would replace its Child Care Benefit and Rebate with one means-tested Child Care subsidy .

Under the changes, families with a total combined annual income of less than $65,000 would have 85 per cent of their childcare costs subsidised, with no cap on subsidies.

Average income earners will also have no cap, and - according to the Government - will save $1500 a year as a result

And families earning more than $180,000 would have the cap on rebates increased from $7,500 to $10,000.

Lobby groups initially welcomed the changes, but say they won't come in for another two financial years.

The Australian Childcare Alliance's Paul Mondo says that means families will continue to suffer financially.

"Realistically, parents need support now and the parents are hurting now. And waiting another 12 months is still going to be really challenging and difficult. Recognising the current predicament of the families is vital, and some immediate relief for those families would be greatly appreciated."

The changes were schedule to begin in July 2017, but that is not set in stone.

Treasurer Scott Morrison could introduce changes to the system in Tuesday's Budget.

Raj Pandya just wants a simple approach that reduces the strain.

"If the Government could make it a bit more easier, I mean standardise some of the cost. For example if you live within a certain perimeter of the city it should be 'this much', if it's closer it's 'this much', etc. There's gotta be something more simpler, a much more simpler way of doing it. Because if people find childcare so expensive, like I said, we just don't bother going to work. We'd rather stay at home looking after our kids."

 

 


Share
3 min read
Published 29 April 2016 6:00pm
Updated 1 May 2016 7:52pm
By Omar Dabbagh


Share this with family and friends