Childcare Sector Changes, page-12

Activities Test

Currently to qualify for CCR (Child Care Rebate) families must be, working, studying or looking for work. The 'looking for work' category has been the loophole used, by many, to claim the 50% CCR. There are very few families who do not claim this rebate, whether they are actually looking for work or not. Scott Morrison is now going to tighten up this loophole.

How will this affect childcare providers? We know from the occupancy levels detailed in the annual reports provided by the corporates and the information available on the government website that most corporate centres have vacancies. Will the tightening of the activities test create more vacancies? Probably yes, but those vacancies may be picked up by people who either increase the number of hours that they work, by people who manage to secure employment or by those who return to study. The new rebate subsidy will have to be viewed as a worthwhile proposition for those families.

The other point touched on by SM was the number of hours that children attend childcare, compared to the number of hours that a childcare centre operates for. Currently, if a centre opens 12 hours per day, the subsidy claimed from the government will be for those 12 hours, even though the child may only attend for 8 of those hours. I expect to see some changes to these claims.

Australia requires more investment into early childhood education. There are many countries where all children, in the year prior to attending formal schooling are entitled to 2 days, of childcare totally subsidised by the government. Should children be denied government subsidised attendance at an early learning facility because mum decides to stay at home? There will be plenty of opposition to that one.