Granting Australian three-year-olds access to preschool is on the Opposition’s agenda, with Bill Shorten unveiling a $1.75 billion subsidy scheme to facilitate two years of preschool for the nation’s youngsters.

The package, which will subsidise 600 hours of preschool for 700,000 children will be a vote incentive for many young families, who have seen out-of-pocket costs for childcare skyrocket by 50% in recent years.  

But for a country still steeped in deficit, some are saying this is fiscally irresponsible and will come to constitute a budget blackhole.

“There are some serious problems with Labor’s policy,” says Eugenie Joseph from the Centre for Independent Studies.

“We’re really underestimating the cost of the new policy. That $1.75 billion, most of it will go to four-year-olds who are already attending preschool. For three-year-olds, they will be funded from 2021.”

“That’s a huge cost that isn’t properly reflected in that $1.75 billion. It will be a huge extra cost to taxpayers with very questionable benefits.”

Ultimately, the announcement of more funding begs the question of how effective subsides are at bolstering affordability, says Joseph.  

“There’s still a very high reliance on informal types of childcare and affordability is the main reason.”

“We’ve seen out-of-pocket costs go up by 50% in just a few year and long day care fees are going up by 6% every year, well above inflation.”

“It really is becoming less affordable despite the fact that we’re due to spend $ 8 billion this year on childcare subsidies.”

 

Click PLAY below to listen to the full interview:   

Granting Australian three-year-olds access to preschool is on the Opposition&rsquo;s agenda, with Bill Shorten unveiling a $1.75 billion subsidy scheme to facilitate two years of preschool for the nation&rsquo;s youngsters.
The package, which will subsidise 600 hours of preschool for 700,000 children will be a vote incentive for many young families, who have seen out-of-pocket costs for childcare skyrocket by 50% in recent years. &nbsp;
But for a country still steeped in deficit, some are saying this is fiscally irresponsible and will come to constitute a budget blackhole.
&ldquo;There are some serious problems with Labor&rsquo;s policy,&rdquo; says Eugenie Joseph from the Centre for Independent Studies.
&ldquo;We&rsquo;re really underestimating the cost of the new policy. That $1.75 billion, most of it will go to four-year-olds who are already attending preschool. For three-year-olds, they will be funded from 2021.&rdquo;
&ldquo;That&rsquo;s a huge cost that isn&rsquo;t properly reflected in that $1.75 billion. It will be a huge extra cost to taxpayers with very questionable benefits.&rdquo;
Ultimately, the announcement of more funding begs the question of how effective subsides are at bolstering affordability, says Joseph.&nbsp;&nbsp;
&ldquo;There&rsquo;s still a very high reliance on informal types of childcare and affordability is the main reason.&rdquo;
&ldquo;We&rsquo;ve seen out-of-pocket costs go up by 50% in just a few year and long day care fees are going up by 6% every year, well above inflation.&rdquo;
&ldquo;It really is becoming less affordable despite the fact that we&rsquo;re due to spend $ 8 billion this year on childcare subsidies.&rdquo;
&nbsp;
Click PLAY below to listen to the full interview:&nbsp;&nbsp;&nbsp;

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