Labor Pledges Subsidised Childcare to All Mid-Lower Income Families

A think tank says the move is aimed at shoring up Labor’s inner-city electorates.

A young boy plays with toys at a pre-school in this file photo. Matt Cardy/Getty Images

A new plan to indiscriminately give families a guaranteed three days of subsidised childcare each week appears to be little more than an attempt by Labor Prime Minister Anthony Albanese to win the next election, says a think tank.

Under the new plan announced on Dec. 11, the current “Activity Test” would be eliminated, meaning families would not have to prove they are working, studying, or in training to access financial support.

This revised policy would apply for households earning under $530,000 annually—catching a broad array of families. For families that earn more, the Activity Test will still apply.

The expanded subsidy will cost taxpayers $427 million (US$272.3 million).

This plan would be sealed under a re-elected Labor government, according to a joint statement by the prime minister, Education Minister Jason Clare, and Early Childhood Minister Anne Aly.

Further, Labor has pledged a $1 billion (US$638 million) Building Early Education Fund that will be rolled out from July 2025 if the government is re-elected.

The Fund will support the building of 160 childcare centres or expansions across suburban, outer suburban, and regional Australia,

As part of this package, the government will also develop an Early Education Service Delivery Price to better understand the cost of delivering services around the country and underpin future reform.

Think Tank Says Subsidy Aimed at Shoring Up Inner City

Graham Young, executive director of the Australian Institute for Progress, said the policy did not make sense “economically or educationally.”

“The only way it makes sense is if you are trying to win back affluent middle-class seats that have swung Green, like Griffith in Brisbane, where the policy is being launched,” he told The Epoch Times.

“Paying households who are earning more than six times the median household income, to send their kids to childcare, irrespective of whether the parents are working or not, is obscene, and a misuse of funds sorely needed in other parts of the economy.

“Welfare should be distributed on a needs basis,” he said.

“At the same time, research shows that childcare serves no educational purpose, and the best carer for a young child is one of its parents.

“Substituting the state for a parent is neither in the interest of the child, nor the parents.”

Aiming for ‘Universal’ Childcare

The government says the move would ensure that no child went to school unprepared.

Education Minister Clare said the move would coincide with a 15 percent payrise for childcare workers and cheaper childcare for more than one million Australian families.

“This is a key part of our plans to build a universal early education system,” he said.

Albanese said the move could be potentially life-changing for children.

“Every child should have the right to quality, affordable early education,” he said.

“That’s why we want to build a universal childcare system that is simple, affordable and accessible, for every family.

“We think children should have guaranteed access to at least three days of high-quality early education and care—because early education is about changing lives.”

Nationals Senator Matt Canavan has voiced opposition.

“This seems to be just a subsidy for rich families because you can already obviously get childcare funding if you work,” he told the Today show.

“This will be for those who don’t have to work.”