There is no doubt that families placed in the lower income bracket will be among those who will benefit most from the proposed changes. However, they will have to qualify and meet the newly introduced activity test. The activity test will ensure that parents who are working, studying or those placed in challenging circumstances have access to additional days in care.
Under the present subsidy structure from the government, the more days you attend the more you pay. At present the government grant a 110% loading on fee benefit for families who attend for 2 days (24 hours) if you decide to attend for an extra day and attend for 3 days, that extra day will cost you almost as much as the previous 2, as you will have that loading on your subsidy reduced. That is why many parents chose to work either part time or job share, nothing to do with not being able to find full time work.
Scott Morrison has stated that he will not allow any extra assistance given to parents, to be a green light for child care centre operators "to jack up their prices". There is no doubt that SM is going to keep a tight rein on price hikes by centre operators.
Don't think that just because your children or grandchildren attend childcare that it makes it a good investment. Good childcare should be about organic growth, growth that confirms families are positive about the choice they have made regarding the early education of their children. Most importantly, it should be about the best possible environment for young children to grow and develop. It should not be about growth coming solely from accumulation. The occupancy levels are fairly stagnant, considering there were some 'premium buys' by the two largest corporates in the last eighteen months, that is concerning.
We are all waiting to see what Scott Morrison delivers. For those with a long term plan remember the ratio changes in 2016 and the fallout should there be another corporate childcare listing in 2015.
All of the above IMO & DYOR.
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