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Assessing Childcare Affordability in Australia
Childcare is currently unaffordable for 386,000 Australian families or 39% of families who use childcare, a new report from Victoria University’s Mitchell Institute shows.
The Federal Government’s $1.7 billion changes to the childcare subsidy, which are due to take effect in July next year, will still leave childcare unaffordable for 336,000 (34%) of Australian families who use the childcare system.
It found that one in three families are spending more on childcare than groceries to feed their family and 85% of families are spending more on childcare than on their utility bills.
The report uses an international benchmark of no more than 7% of disposable income spent on childcare to determine childcare affordability for families.
More than 40 per cent of NSW firms say skill shortages are taking a toll on their business as economic disruptions caused by the pandemic-induced slump in overseas migration become increasingly apparent.
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