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Childcare costs rise at five times the rate of inflation over single year Childcare costs rise at five times the rate of inflation over single year
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Australia’s childcare costs have risen at five times the rate of inflation over the course of a year, with the average hourly fee increasing by 7.6%.Australia’s childcare costs have risen at five times the rate of inflation over the course of a year, with the average hourly fee increasing by 7.6%.
The education minister, Simon Birmingham, says data released on Sunday shows the Turnbull government’s “temporary stop-gap” measures are not enough to ease childcare costs, with more action urgently needed. The education minister, Simon Birmingham, said data released on Sunday showed the Turnbull government’s “temporary stop-gap” measures are not enough to ease childcare costs, with more action urgently needed.
The Early Childhood and Child Care in Summary report found more than 1.2 million children were in childcare in the June 2016 quarter. This was 2.1% more than a year earlier.The Early Childhood and Child Care in Summary report found more than 1.2 million children were in childcare in the June 2016 quarter. This was 2.1% more than a year earlier.
The average hourly fee for all childcare service types was $8.65, an increase of 7.6% since the June 2015 quarter, the report said.The average hourly fee for all childcare service types was $8.65, an increase of 7.6% since the June 2015 quarter, the report said.
In long day care – by far the most popular service – average hourly fees increased by 6.3% to $8.90.In long day care – by far the most popular service – average hourly fees increased by 6.3% to $8.90.
In a statement responding to the report, Birmingham made the case for the government’s proposed childcare overhaul, which is tied to a swag of welfare cuts.In a statement responding to the report, Birmingham made the case for the government’s proposed childcare overhaul, which is tied to a swag of welfare cuts.
The reform plan includes an hourly rate cap which is a necessary first step to arrest fee increases that would also provide families with a reference point, Birmingham said.The reform plan includes an hourly rate cap which is a necessary first step to arrest fee increases that would also provide families with a reference point, Birmingham said.
Under the plan, the $7500 childcare rebate limit would also be removed for all families earning less than $185,000, he said. Under the plan, the $7,500 childcare rebate limit would also be removed for all families earning less than $185,000, he said.
“Over the next two weeks parliament has the opportunity to step up to the plate and provide the support that Australian families are crying out for,” he said.“Over the next two weeks parliament has the opportunity to step up to the plate and provide the support that Australian families are crying out for,” he said.
Birmingham said families were facing a “double whammy’ of slow wage growth and childcare fees increasing three times the speed of the economy, demonstrating the system needed reforming.
He wouldn’t speculate on how negotiations were progressing with the Senate and whether this included splitting the omnibus bill.
“We want to see our child care reforms pass the parliament during these next two weeks of sittings so that we can give certainty to families and to child care providers that help is on the way,” he told ABC radio on Sunday.
The deputy prime minister, Barnaby Joyce, said if the parliament stymied the package it would be on the shoulders of the Senate and Labor.
He said the government was taking prudent measures while assisting families. “We have to get the budget back into balance,” Joyce told ABC television. “If we don’t get this under control, then in 10, 15, or whatever years’ time, we won’t have support for childcare because we won’t have any money.”
Labor has claimed pensioners, families, new mums and young Australians will be hurt by welfare cuts that would be used to support the reform.Labor has claimed pensioners, families, new mums and young Australians will be hurt by welfare cuts that would be used to support the reform.