Labor says its childcare policy will ease costs for families after inflation figures this week showed a 4.2 per cent annual price rise in the sector.
The Opposition said in a media statement on Thursday that Australian Bureau of Statistics data showed out-of-pocket childcare expenses were "out of control" and higher subsidies were needed to encourage parents to work.
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The ABS noted in its consumer price index report on Wednesday that childcare costs were unchanged in the March quarter as increased fees had been offset by the recent introduction of additional childcare subsidies for families with two or more children.
"This policy came into effect part way through the quarter and therefore will also impact the June 2022 quarter," the ABS said.
Labor said average childcare costs remained at a record high and released a series of scenarios it said showed families would save thousands of dollars under its policy.
The party says its plan to lift the maximum subsidy rate to 90 per cent for the first child would benefit the 96 per cent of families using childcare who earned less than $530,000.
Under one scenario, a family with one parent working full-time and the other working three days a week, two children aged one and three in long daycare and a combined income of $120,000 would be $2332 better off.
A sole parent earning $80,000 a year with two children in care full-time would see their expenses drop from $6877 to $4485, or $46 a week.
Michael Parris
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
Michael Parris reports on politics for the Newcastle Herald. He started at the Herald in 1994 after working in the ABC Newcastle newsroom. Michael spent much of his career as a sub-editor before moving into political reporting in 2017. He was a finalist in the Sports Australia national media awards for his stories about a male-only tennis club in Newcastle. He has covered NSW and federal elections, state and federal budgets and local politics. He has also written extensively about the COVID-19 pandemic with a special focus on data analysis and the effects of lockdowns on the Hunter community.
