Childcare Savings On the Way in NSW
Childcare savings on the way in NSW...
BY BONNIE LAXTON-BLINKHORN, KINDICARE
Eligible NSW families may be in line for savings on the cost of childcare thanks to a sizeable chunk of coin being invested by the state government.
Some $5 billion will be spent over the next decade to expand access to high quality affordable early education and care.
In a media release NSW Premier Dominic Perrottet said it can be hard for families to access affordable childcare, especially in Sydney, and this funding would transform the lives of families across the state.
“We know that childcare places are scarce in some postcodes, making it difficult for parents to return to paid work when they want. Improving accessibility to childcare by investing in supply will provide practical assistance to families with young ones.”
The government says that under the reforms an eligible middle-income Sydney family with one child in full-time childcare is expected to save up to $3,900 a year, while the equivalent family living in regional NSW with two children in childcare is expected to save up to $7,800.
The NSW government is hoping the investment will boost women’s economic opportunities, increase the female workforce and close the gender pay gap.
Treasurer Matt Keane said the high cost of childcare means some working women only keep 30 cents in every dollar they earn when they return to work.
“Childcare shouldn’t be a postcode lottery…This investment, delivered alongside the Commonwealth’s childcare reforms, is expected to see up to 95,000 women enter the workforce or take on more hours, driving down the gender workforce participation gap by up to 14 per cent within a decade,” he said.
The cash injection is also intended to boost the supply of more affordable childcare across the state through grants to enable providers to expand infrastructure and establish new centres, especially in areas with limited services or where a shortage of services is a barrier for parents wanting to return to work.
Childcare providers will be able to bid for funding through a competitive process starting July 1 2023 and while some of the detail will be worked out in consultation with the early education sector, the government hopes the money will be used to address challenges such as staff shortages, affordability and lack of supply.
Detail from the NSW Treasury suggests that the investment, in combination with Commonwealth reforms, could see as many as 47,000 new childcare places being made available over coming years.
The government also says the funding model has been designed to evolve in line with Commonwealth arrangements to address any gaps that arise as the Labor government’s Plan for Cheaper Childcare plan is rolled out.
