Everything You Need To Know About The Productivity Commission’s Childcare Report

Everything You Need To Know About The Productivity Commission's Childcare Report
Everything You Need To Know About The Productivity Commission's Childcare Report

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A much-anticipated report into Australia's childcare system will be tabled in Parliament today, according to the Sydney Morning Herald.

This report from The Productivity Commission, will be one of the key factors in the formation of the Prime Minister's new 'families package', a tradeoff for dumping his $20 billion paid parental leave scheme. One of the biggest promises from Prime Minister Abbott was a comprehensive restructuring and streamlining of the current childcare subsidy system.

Currently, the Government hands out childcare assistance subsidies in a number of separate and convoluted payments. The report suggests that this be scrapped in favour of a single means-tested lump sum paid in full once a year. Lower income families (those earning below $60,000/year) could receive 85 per cent of their childcare costs covered. High income families, or those earning about $250,000, would receive a payment covering 20 per cent of their childcare costs.

If the Government takes on the Productivity Commission’s suggestions, up to 100 hours of subsidised childcare could potentially be accessed by parents every week, provided that they work or study at least 24 hours over the course of a fortnight. Parents on income support would not have to meet this benchmark.

Other recommendations of interest from the report include a note that au pair visas be extended to one year (instead of the current six months) and that children who are deemed “at risk” receive 100 hours of childcare a week fully funded by the Government.

One of the most controversial takeaways from the report is the idea that nannies should be included in childcare subsidy, provided that they are professionally accredited. It’s something that Social Services Minister Scott Morrison says the Government is “considering”.

"I think the recommendation reflects an observation that there needs to be a greater array of services offering to deal with a much more diverse range of needs," he told Fairfax. “[But] if everyone goes off and becomes a nanny, there will be no-one working in childcare care centres.”

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