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Government intervention makes childcare dearer

These are the basics of Labor’s policy:

A Shorten Labor Government will put more money back in working parents’ pockets for 887,000 Australian families. Every single family earning up to $174,000 will get cheaper child care with Labor.

All families earning up to $174,000 will be better off under Labor’s plan.

We will increase the subsidy rate from 85 per cent to 100 per cent up to the hourly fee cap (currently $11.77 per hour for long day care) for families earning up to $69,000 who meet the activity test requirements, making child care free, or almost free, for up to 372,000 families. The current tapered reduction will be updated to reflect this new, higher subsidy rate.

Families earning between $69,000 and $100,000 will receive a subsidy rate between 100 per cent and 85 per cent up to the hourly fee cap, and families earning between $100,000 and $174,000 will receive a subsidy rate between 85 per cent and 60 per cent up to the fee cap – delivering an effective increase of 10 per cent.

Families accessing approved Centre Based Child Care, Family Day Care and Outside School Hours Care, including holiday care, will all benefit from the more generous subsidy.

Combined family income Current Subsidy rate New subsidy rate Number of families better off Average annual saving per family
Up to $69,527 85% 100% 372,000 $1,400
Over $69,528 to $100,000  

Tapered reduction from 85% to 50% to $174,527

Tapered reduction from 100% to 85% 158,000 $1,400
$100,001 to $174,527 Tapered reduction from 85% to 60% 357,000 $1,200

So the saving to families in a best-case scenario is $1400 a year. in other words, $28 a week. Noting that according to Labor, long day care can cost $11.77 an hour.

So under Labor’s policy the additional saving amounts to all of 2 hours.


Meet Sydney mum Yasna Alania

Politics is personal. The art is to put a personal face on policy.

So let’s meet Yasna Alania.

When the Labor policy was released exclusively to the Fairfax papers, Yasna was the featured face.

This is Yasna and her three children.

With three children under four years of age, young mother Yasna Alania wonders “all the time” whether working is worth it after the cost of childcare.

Ms Alania, from Sydney’s Brighton-le-Sands, pays $600 a fortnight for two days of childcare for each of her three children. That’s about half her pay from a part-time job as a disability worker in a group home.

You may have seen Yasna before.

She was also featured in The Daily Telegraph ($$$) when NSW Labor leader Michael Daley 9remembr him?) released his policy in February 2019:

Brighton Le Sands mum Yasna Alania, 25, spends $500-600 a fortnight on childcare for her three children aged four, three and one.

She has had to ask family and friends for help because the fees are “quite difficult” to afford on a part-time wage.

“It’s just too much money for parents — a lot of parents are struggling … many friends of mine are going through the same thing,” Ms Alania said.

NSW Opposition Leader Michael Daley this morning supported the ACA NSW’s call for a parliamentary inquiry saying “families need to be protected from gouging”.

Her facebook page is remarkably family friendly. Almost as though someone has gone through and deleted posts. But she does like … Labor … and Michael Daley. Which is absurd.

No one likes Michael Daley.

Journalists would be respected more if they did the groundwork for themselves, and didn’t rely on everything being handed to them on a platter. Not just the details of the story, but even the ‘human interest’ example.

If you want to find out why childcare costs are high, don’t look to government for the solution. Look solution as the cause.

Read this report from the Centre for Independent Studies and you’ll be ahead of the game.

The Libs are on target with Shorten

Their social media campaign is exemplary.

Culture shock

Yoplait isn’t French for yogurt but merde is French for submarines, apparently.

This is going to be a catastrophe.

After securing the so-called “contract of the century”, the French company chosen to build Australia’s future submarines has conceded it’s having cultural clashes with its $50 billion customer, with lunch and meeting times proving problematic.

For example, Australians expect meetings to start on time. The French give it an extra 15 minutes.

But there are benefits to getting in on the project:

Earlier this month, the ABC revealed Australians working on the future submarine program in France were sending their children to a $53,000-a-year British boarding school at taxpayers’ expense, because local classes are not taught in English.

The first of the new French-designed submarines are not due to be in service until the mid-2030s.

Thanks, Malcolm.

Architects are going to screw up Notre Dame

The Breakdown is a fan of Theodore Dalrymple.

Read his take on what’s happening at Notre Dame.

You really shouldn’t say that, Elon

Accusing someone of being a pedophile is just about the lowest you can go.

British cave diver Vernon Unsworth is seeking damages from Elon Musk after the Tesla chief said he was a pedophile.

Musk has tried to behind the First Amendment.

Musk should bite the bullet and write a very large cheque because a court will likely view this outburst unfavourably.

Just write the cheque and save on lawyer fees.