The Albanese government’s response to the competition watchdog’s latest report on the childcare sector was disappointingly shallow.
The competition watchdog’s latest report into the childcare sector found policy settings were having a limited effect in keeping prices contained and reducing costs for taxpayers.
Responding to the Australian Competition and Consumer Commission’s second interim report from a review of childcare services, Mr Clare said under Labor’s scheme – which came into effect in July – families were on average paying 14 per cent less per hour, per child for centre-based care.But while this is true, it won’t last long, according to Ben Philips, associate professor at the ANU Centre for Social Research and Methods.
“Out-of-pocket costs have not changed dramatically [to incomes over the long term]. It gets more expensive and there’s a new subsidy, it gets more expensive and there’s a new subsidy again,” he said.Centre-based childcare fees increased by 20 per cent across all services between 2018 and 2022; inflation-adjusted the increase was about 4 per cent, suggesting a strong input cost growth. The main input for centres is wages.The key takeaways from the ACCC’s latest report are clear.
The ACCC report found the current childcare subsidy and hourly rate cap “has had a limited effect in placing downward pressure on prices and limiting the burden on taxpayers.” Possible tweaks to the system include stronger government price and outcomes monitoring, and consultation on changes to the subsidy and hourly rate cap mechanism, including a credible threat of intervention.; it has a nice political ring to it.But average profit margins are at 5.5 per cent this year, substantially less than other sectors such as the banks that have attracted scrutiny during a period of sour economic sentiment.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Albanese just spent $364 million to make Jacinta Price PMThe No campaign leader couples her focus on the terrible disadvantage in Indigenous communities with a message of empowerment and hope.
Read more »
Anthony Albanese's Voice hijacks the meaning of the word 'truth-telling'That famous T-shirt the prime minister was photographed wearing said: 'Voice, Treaty, Truth'. And this same triple word slogan has been seen at many Voice referendum rallies.
Read more »
Albanese just spent $364 million to make Jacinta Price PMThe No campaign leader couples her focus on the terrible disadvantage in Indigenous communities with a message of empowerment and hope.
Read more »
Is the Albanese government's vision of full employment a flop?The government has a new definition of full employment, but will it make any difference, asks Gareth Hutchens.
Read more »
Albanese just spent $364 million to make Jacinta Price PMThe No campaign leader couples her focus on the terrible disadvantage in Indigenous communities with a message of empowerment and hope.
Read more »
Albanese weighs in on 'very unfortunate' mess in Tasmania's minority Liberal govtPrime Minister Anthony Albanese has responded to the 'instability' surrounding Australia's only Liberal government.
Read more »