I like some of the points, activity testing for all payments is important and hopefully might free up spaces for people who are working.
The deemed cost is ridiculous, but reminiscent of I think what they were trying to do with capping the rebate on IVF? (i.e. stop places from price gouging?)
I've started reading the full report and this stands out so far:
Current Australian Government assistance to families creates a strong
disincentive for some parents to enter the workforce or to increase their hours of
work. For some second income earners (usually mothers) who return to work
and use ECEC, the combination of a drop-off in family tax benefits once family
income rises, increasing income tax rates, and reduced ECEC assistance at
higher income levels, can result in an effective marginal tax rate of close to 100
per cent, particularly once work exceeds 3 days per week (figure 3). However,
despite high effective marginal tax rates in the immediate future, parents (often
those more qualified or with a career path) may continue working as they
anticipate longer term private benefits from maintaining attachment to the
This is a major issue. The current arrangements are a disincentive for middle and lower income workers to return to work after having children. This is what needs to change.
Last edited by NoteToSelf; 22-07-2014 at 12:59.
Childcare should be free for all
Even in very wealthy family, why would a women go back to work if her wage goes straight into paying for childcare?
The proposed system makes things worse for them.
Of course they are wealthy so who cares if they are dependent on their husband income.
What I would love to see is a change in how we regard early education.
That children under 5yo receive a proper eduction is paramount. As a society it should be a priority to ensure that each child gets a professional education when earlier than 5-6yo.
This report does nothing about that. And I don't think anyone should have to pay $25k per child per year for that.
Even if they made child care fbt free ... Many workplaces would then provide child care
918 pages??? I can't read that! Where's the cheats table that says what CCR someone will get based on their income?
I've started reading the report and it even says in there that the evidence is not there to show benefits for children 3 and under, which is why they are only funding universal access for the year before schooling starts. Except for children with special needs or those who are at risk of harm at home.
I use child care so I can go to work, there is nothing they do there that I cannot do with my kids, I don't think we need universal early education prior to age 3 or even prior to the preschool year.
Last edited by NoteToSelf; 22-07-2014 at 15:22.
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