Productivity Commission Benchmark Too Low

Scott Morrison has admitted that the recent recommendations of a $74 benchmark for childcare fees will do little to benefit parents.

The national average childcare fee is $89.18. Comparing the current system and the recommended benchmark, using the national average fee would see parents, who receive maximum benefit, disadvantaged by $5.29 per day. A benchmark of $90 would, see that same parent, reduce their fees by $8.31 per day.

Early childhood organisations are calling for a benchmark of $100 per day. That creates two issues:

1. What happens to the centres who are charging less than the benchmark? Doubtful that the government will
allow any parent to access totally taxpayer funded childcare. Could we see a minimum charge introduced for
the families who fall into this category?

2. Will we see centres who already charge under, or close to, the national average of $89.18 increase their fees?
Scott Morrison has stated "the government wants to introduce some price signal or cap on soaring childcare
fees so taxpayers are not left subsidising gold plated services which charge as much as $164 a day and offer baby
Zumba classes".

When the dust settles, will this see more women actively participate in the workforce and increased occupancy levels in childcare centres?