A Cabinet Minister has attempted to justify why Labor needs to spend $11 million of taxpayers' money on the competition watchdog to investigate the increases of childcare costs impacting struggling Australian families.
The 12-month inquiry by the Australian Competition and Consumer Commission will investigate the costs that have jumped 41 per cent in the last eight years. The body will look into what the driving factors are behind the increase in childcare fees and make recommendations to the government to help struggling families.
Stream more on politics with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 Labor will spend $11 million on the Australian Competition and Consumer Commission to investigate soaring childcare prices. Picture: Getty The funds, which will be set aside in the Budget for the inquiry set for the beginning of 2023, was raised to Finance Minister Senator Katy Gallagher. She was questioned why the watchdog needed more money and why an investigation was required to"confirm something we already know". "We're asking a lot of the ACCC at the moment. They've got their eyes on many different parts of the economy," she told ABC on Wednesday. "In terms of our investment in early childhood education and care ... we want a better understanding of some of the drivers of cost increases in child care and making sure some of our investments are actually doing what we want them to do. " to make child care more affordable for families and allowing more women, well, it's predominantly women, to work extra hours if they want to, and not be disincentivised by the childcare system as it operates now." Finance Minister Senator Katy Gallagher defended the government's decision to reserve $11 million in the Budget to"understand" what drives up prices. Picture: NCA NewsWire / Gary Ramage Fees have exploded through the roof in recent years, with some parents forced to spend up to $200 a day for one child in care while they go to work. It has meant some frustrated families, in particular women, have refrained from returning to the workforce and instead look after their children at home.Senator Gallagher was posed whether the government would consider introducing policies ahead of the report being returned to ensure families do not suffer. She stressed she did not"want to get ahead the work" the ACCC was conducting and stressed Labor will continue to evaluate the costs."We want to make sure the money we're investing and the money that parents are investing is working and child care is as affordable as we can make it." The Albanese Government committed during its Federal Election campaign to increase childcare subsidy to ensure households kept more money in their pockets. Labor claims 96 per cent of Australians will be"better off" by lifting assistance to 90 per cent for a single-child families on total incomes up to $530,000. Those with two or more children will also"receive a higher subsidy rate for second and subsequent children". But the government has been pushed by Opposition and the public to bring forward the $5.4 billion commitment, set to come in July 2023, to help families feeling the pinch. Treasurer Dr Jim Chalmers has refused to bring forward the legislation to help families, which Education Minister Jason Clare said the bill would be introduced into Parliament next week. Picture: NCA NewsWire / John Gasson Labor’s massive election commitment on childcare next week. Mr Clare said the policy was important for Australian children, parents and the economy as a whole as it would significantly improve female workforce participation. “In particular for Australian mums it will help them to work more hours and work more days to earn more money and have more money to retire on,” the said on Wednesday. “And for our economy it means businesses will get thousands and thousands of skilled workers back at work.” Treasurer Dr Jim Chalmers joined Mr Clare in Queensland's capital and revealed the childcare policy would be the largest item in the upcoming October budget. However, he refused to bring the July date forward and insisted any recommendations tabled in the ACCC report would be considered, including any tweak to the subsidy that will come into effect before the report is tabled at the end of 2023.
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