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Fitzgibbon claims government’s child care system crippling Hunter families

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Federal MP Joel Fitzgibbon claims recent data reveals Hunter families have been hit with a hefty increase on their child care fees under the Morrison government.

According to the Department of Education, over the past 12 months, those in the Lower Hunter (Cessnock) were hit with a 6.4 per cent price hike, while the Upper Hunter (Singleton and Muswellbrook) experienced a 5 per cent rise to costs.

Those figures are substantially higher than the nationwide average of 4.52 per cent.

But, the news gets worse for local families.

The same data predicts child care fees will continue to escalate by 4.1 per cent every 12 months for the next four years.

These increases markedly outstrip inflation at 2.2 per cent, which is what the Child Care Subsidy is fixed to.

This means families receiving the subsidy will see out-of-pocket costs skyrocket for some time to come, according to Mr Fitzgibbon.

“Those who were looking forward to entering the new year starting fresh will be left feeling let down knowing their rising child care fees will rise even more under Scott Morrison’s watch,” the Hunter member said.

“Looking back since the Liberal/National government was elected in 2013, nationwide child care fees have soared by 35.9 per cent.

“And, given the future predictions, there is no end in sight.

“There can’t be a worse time for families to experience more unnecessary hits to their budgets.

“This evidence is clear the government’s child care system is broken.”

In contrast, Mr Fitzgibbon added, Labor would introduce the Cheaper Child Care for Working Families plan to cut fees and put more money into the pockets of people, straight away.

Under the proposal, the party will:

  • Scrap the $10,560 child care subsidy cap, which often sees women losing money from an extra day’s work;
  • Lift the maximum child care subsidy rate to 90 per cent; and
  • Increase child care subsidy rates and taper them for every family earning less than $530,000.

“Labor’s plan will make child care more affordable for 97 per cent of families using child care, as well as remove financial barriers that discourage second income earners to work full-time,” Mr Fitzgibbon said.

“Families in my electorate are still right in the middle of recovering from the effects of COVID-19.

“This is the last thing they need.

“If Scott Morrison doesn’t have a plan to fix his broken child care system, he should come to the Hunter, meet with local families and explain why he won’t step in to stop their rising childcare fees.”

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