Continuing to deliver affordable, accessible and flexible child care

Media Release

03 June 2013 

Minister for Early Childhood and Child Care, the Hon Kate Ellis MP, today confirmed that despite the uncertainty of global economies, Australian families were spending proportionally less of their disposable incomes than they were a decade ago.

"I am proud of the record of the Labor government in improving the affordability of child care," Ms Ellis said.

"We are investing over $22.1 billion in direct child care assistance to parents over the next four years - well more than triple the investment of the former Howard Government during their last four years in office."

"It was our Government that increased the Child Care Rebate from 30 per cent to 50 per cent of out-of-pocket costs which continues to reduce the cost of child care for families.

"It was our Government that increased the cap from $4354, up to $7500 per child per year.

"In 2004, under the Howard Government, a family on $75,000 spent 13% of their disposable income on child care.

"In 2011, following our increased assistance, this expenditure dropped back to 7.5% of disposable income.

"And figures released recently show that expenditure was still 8.4% of disposable income, 8 years later in 2012.

"Balanced against the staggering increases in child care prices that hit families during the years the Coalition was in government, I am proud that Labor is making sure that their out of pocket child care costs remain low."

Ms Ellis said that according to the ABS, net child care prices went up a staggering 43% under the former Coalition Government compared to only 13.9% under the current Labor Government.

"Parents know that only Labor is prepared to continue providing financial support directly to families to make sure they can access child care, because we understand how important it is for workforce participation and early learning opportunities for children.