More money for parents in childcare subsidy increase

Kristen, whose twin 18-month-old daughters Hazel and Willow attend Ballarat Childcare Cooperative, is one of around 4200 Ballarat families who will benefit from an increase to the child care subsidy which takes effect from July 1.

It will mean an extra $70 a fortnight in her family's pocket.

"With the tight cost of living it means our household doesn't feel so stretched. It means I might be able to return to work four days a week," Kristen said.

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"It takes away the extra pressure of feeling that pull between going out and working to provide for your family, and the mental sanity from maternity leave, and being able to provide great care for the children."

Kristen hopes the change in child care subsidy will mean they can consider an extra day of childcare because they currently have family members looking after the girls two days a week.

Families earning $120,000 with one child in care will save about $1700 a year.

For families on a combined income of $80,000 or less, the Child Care Subsidy rate will increase to 90 per cent, and for families with two or more children the higher subsidy of up to 95 per cent for second and subsequent children will remain.

Families at some other centres are cynical that their childcare services have increased fees to swallow up the subsidy increases which are meant to reduce the out-of-pocket fees for parents.

Unlike many other centres, Ballarat Childcare Cooperative is not moving its fees.

"Childcare fees are a big cost for the 91 families at our centre," said acting centre director Maddie Groux.

"The cost means that for some parents, particularly mums, the decision of whether to go back to work or not can be really tricky. We hope that the changes to the CCS will make families' decisions that little bit easier."

Childcare centres that hike their fees have been warned they will be in the sights of the consumer watchdog.

Education Minister Jason Clare said the Australian Competition and Consumer Commission was monitoring for unreasonable price rises.

"They're watching what's happening right now to see whether centres are playing by the rules or not, whether they're lifting prices in accordance with inflation or not," he said in Melbourne.

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"If they don't, then they stand ready to act and give us the recommendations we need to make sure parents get value for money."

For Ballarat MP and Federal Minister for Infrastructure, Transport and Regional Development Catherine King, her visit to Ballarat Childcare Cooperative was a step back in to familiar territory - her now-teenage son attended the centre, cared for by many of the present staff, before he started school.

"Childcare, other than mortgage or tent, when families are in this phase of life is the biggest expense," she said.

"There's a a lot of pressure on families which means the choice they are having to make whether to return to work or not really are quite constrained. Hopefully more families will be able to access childcare and able to increase their hours of work if that's what they want to do."

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