There's a major pitch to overhaul childcare. What does it mean for parents?

The federal government is pitching a major overhaul of Australia’s childcare system.???

On Wednesday, Prime Minister Anthony Albanese will announce significant changes to the childcare activity test, allowing more working parents access to government support.?

That test, which was tightened in 2018, requires parents to work, study or volunteer for a certain number of hours - exceeding those hours means losing access to childcare subsidies.?

Under the government’s new plan, every family earning less than $530,000 per year would be guaranteed up to three days of subsidised childcare a week.

In an interview on ABC Radio National with Patricia Karvelas on Wednesday morning, Prime Minister Albanese said the proposal would help some 66,000 families.?

“This is about children … It’s as simple as that,” Mr Albanese said.?

“We want every child to be able to access three days of quality early education.?

“We are going to as well make some further announcements today about infrastructure and investment to make sure that communities that don’t have access to childcare are able to get that,” he added.?

The move is in line with recent recommendations from the the Productivity Commission, which was critical of the current childcare activity test.????

It noted that access to childcare shouldn’t hinge upon hours worked. Instead, it recommended every family wanting to send their child to early childhood education should get 30 hours, or three days, of access per week.?

Affordable childcare could be a game-changer for women wanting to work more hours and access the financial benefits and career opportunities that come with it.?

Workplace Gender Equality Agency (WGEA) analysis has found women (35+) are twice as likely as men to be employed part-time and casually - citing childcare responsibilities as the reason.?

This not only impacts women’s capacity to earn, it shrinks the national talent pool at a time of critical skills shortage. Plus, getting more women into the workforce can inject an estimated $128 billion into the workforce.?

Gender equality expert and FW deputy managing director, Jamila Rizvi, said affordable, accessible childcare was key to Australia’s prosperity.?

“Any step that moves us further towards universal early education and care is a welcome one,” she said.?

“We can’t afford to keep putting reform of this vital policy area in the too hard basket.”?

FW

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