It means about $30 a week saved by families when the Federal Government’s reforms first came from mid-2018 has already been eroded. Analysis of the latest CPI figures from the Australian Bureau of Statistics shows prices are 3.2 per cent higher in Brisbane now than they were just prior to the new subsidy coming into play.
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Every other state and territory capital either remains lower or on par compared to July 2018.One child care industry source suggested Brisbane had copped the higher increases due to its prices having previously been lower than prices like Sydney and Melbourne, but rises in rental costs for centres has seen the gap in fees close. Labor has seized on the figures, arguing the show the reforms have failed to make child care more affordable.Opposition early childhood eduction spokeswoman Amanda Rishworth said the new child care subsidy had been sold as a “once in a generation reform”.“In just two and a half years, Brisbane families are paying more out of pocket than they were before the system was introduced,” she said.“Since the system was introduced in mid-2018, Brisbane families have been hit with the highest out of pocket cost increases in the country.“The Morrison Government cannot continue to bury their heads in the sand and say nothing is wrong here. Families are struggling and it is only going to get worse.”But Education Minister Alan Tudge said nationally out-of-pocket expenses were still 1.8 per cent lower compared to when the child care package was introduced.

“Fees in Brisbane are coming off a low rate and so parents are still on average paying less for child care than in some other capital cities,” he said. “Nearly 24 per cent of parents are paying out-of-pocket expenses of less than $2 per hour, and 71 per cent less than $5 per hour.”He said the government spends about $10.3 billion on child care subsidies. The subsidy introduced in 2018 covers up to 85 per cent of the childcare fee depending on a family’s household income.Labor in October last year announced a $6.2 billion policy, which would lift the maximum subsidy to 90 per cent and remove the $10,560 cap.
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