Moving back to the Child Care Subsidy.

Australians will see a return to unaffordable childcare and disincentives to work with the reinstating of the Child Care Subsidy (CCS).

CEW’s concern runs deep over the end of the childhood education and care relief package that will see families move back to the CCS. Reverting to the CCS will reduce the ability of parents across Australia, particularly women, to fully participate in the workforce and contribute to the economic recovery.

CEW President, Sue Morphet believes that as Australia seeks to rebuild its economy, we need to capitalise on the productivity of our entire workforce by minimising barriers to workforce participation.

‘An unintended consequence of the Child Care Subsidy (CCS) is that while primary carers are supported in taking up part-time work, they face high barriers to taking up full-time work.’

‘Working mothers wanting to do an extra shift or an extra day’s work are confronted by massive disincentives to do so – from paying income tax, the loss of family payments, the loss of the Child Care Subsidy and extra out-of-pocket childcare expenses. Those women can lose between three-quarters and 120% of their additional earnings. These additional costs make days 4 and 5 of work just not worth it financially for far too many parents of young children.’

‘This is a time when every worker who is offered a job should be able to take up that job. Every worker who is offered a shift should be able to take up that shift. And every worker who is offered a few extra hours of work should have an incentive to work those extra hours.’

‘As Australia seeks to rebuild economic capacity, we simply cannot afford to return to the old CCS structure where workforce participation (particularly for women) is inhibited by powerful financial disincentives to increase working hours or days.’

‘We know we are in a ‘pink recession’ with women hardest hit by job and hours losses and reduced pay. We must invest now in the infrastructure needed for women to return to work or continue to work.’

‘With Victoria facing a worsening health crisis we must continue emergency measures to support families, workers and businesses.’ Sue Morphet

CEW continues to work with the Government and our partners in business, academia and the early childhood sector to push for a new deal to deliver accessible, flexible, quality early childhood education and care as a key enabler of workforce participation.