Childcare fees jump as Albanese government races to design universal system
Childcare fees jumped 7.3% in the past 12 months as the government designs a universal system.
Prime Minister Anthony Albanese wants universal childcare to be his legacy alongside Medicare. The childcare sector faces growing pressure as costs rise.
One Sydney mother went full-time to cover costs, and her fees jumped from $175 to $536 per week. The government is still working out what universal childcare will look like.
It has hired Deloitte and KPMG to study the costs and options. The system will likely be means-tested rather than completely free.
Today's childcare subsidy costs the government about $16.2 billion. This is expected to rise to $18.4 billion by 2028-29.
Meanwhile, the not-for-profit sector is growing with help from a $1 billion building fund. The government wants to shift childcare from for-profit providers to not-for-profits.
- 7.3%
- Fee increase in 12 months
- $175 to $536
- Rachel Hill's weekly fees rise
- $16.2 billion
- Current government spending
- $18.4 billion
- Projected spending by 2028-29
Why it mattersRising childcare costs are affecting family planning choices and workforce participation. A strong universal system is key to the government's goals.
AustraliaAustralian families are choosing not to have more children because of childcare costs, and the government believes universal childcare is essential to reverse a trend where deaths could outnumber births by the 2060s.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
Open this story in InSnip →
