Productivity Commission findings – what do these mean for you?

Productivity Commission findings – what do these mean for you?

Productivity Commission findings – what do these mean for you?

In February 2015 the final report outlining the findings and recommendations from the Productivity Commissions were released. The aim of these findings is to assist Government as it embarks on revamping the current assistance programs operating such the Child Care Benefit, Child Care rebate and Jobs, Educations and Training schemes.

The Commission found the following:-
• For the majority of families 50% of current fees charged by services are covered by Government subsidies,
• The current system is very complex and a declining percentage of the subsidies are going to low income families,
• That these assistance programs are not being targeted correctly

Source: education.gov.au/productivity-commission-inquiry-child-care-and-early-childhood-learning

Recommendations include rolling all 3 current payments into just 1 payment know as the Early Care and Learning Subsidy (ECLS). This would be paid to the service chosen by the parent and would be subject to the parent/s meeting certain requirements such as being employed or studying. It would be income dependent and be calculated on an amount the government deemed as the cost of care and it would be capped at 100 hours per fortnight.

Parents would still pay a gap amount, which would be the difference between what the Government paid to the service and what the service charged.

Irrespective of what and when any changes are introduced we can all agree that childcare is a necessity to many families who are dependent on all the adults in that family being able to access work to earn incomes to meet the ever-increasing costs of living.

Kool Kidz has been carefully following the Productivity Commission process and after reading the report we urge the Government to ensure that Childcare above all else remains accessible, Quality focussed with highly Qualified educators who are recognised and paid as professionals and is affordable based upon each families situation.

For more information and to find out how to have your say click here http://www.pc.gov.au/inquiries/completed/childcare