The "grandparents are competitors to child care businesses" has been rehashed too many times on this forum. Grandparents represent a significant source of child care in most countries, but families in most developed countries still rely on formalized child care centres for reasons that grandparents cannot replicate.
Today's story, covered on most news sites, also highlights sloppy OZ journalism (and not just by the 9news writer):
(1) Contrary to the 9news title, the proposal was announced by an independent senator, not the government (the senator -- and a second senator -- claimed the gov't would consider the idea);
(2) The government had to issue a rebuttal (necessary with sloppy journalism) that it has not initiated any review or consideration of this payment idea beyond current arrangements;
(3) The OZ government already offers financial support to grandparents who provide child care. Grandparents receive larger payments if they are primary carers of their grandchildren and fulfill other criteria. (see gov't websites below).
http://www.humanservices.gov.au/customer/subjects/support-for-non-parent-carers
http://www.mychild.gov.au/childcare-information/grandparent
The Newscorp article today on this topic claimed that "some European countries" pay grandparents to care for their grandchildren, but it neither named the countries nor cited any sources. I can't find any evidence of Euro countries paying grandparents as proposed by the senators. However, Germany provides direct payments to parents which they may use to pay grandparents (or keep for other purposes). The following recent European Union report has details of child care support, including the role of grandparents across European countries. It does not seem to mention grandparent payments in Europe.
http://europa.eu/epic/studies-reports/docs/rr-554-dg-employment-childcare-brief-v-0-16-final.pdf
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