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Free child care ends as focus switches to fate of income support schemes

One of the measures brought in to help the economy through the COVID-19 pandemic is ending, as the Morrison Government comes under pressure to reveal what will happen to two other schemes – JobSeeker and JobKeeper.

Jul 13, 2020, updated Jul 13, 2020
Free childcare entitlements will end this week, the government has announced. (Photo: ABC)

Free childcare entitlements will end this week, the government has announced. (Photo: ABC)

From Monday, parents will have to pay for child care again. Payments were suspended in April when the Government introduced a $1.6 billion plan to help the sector and its workers survive through the crisis.

Education Minister Dan Tehan said free child care had left providers unable to keep up with demand for placements.

“Obviously as the economy continues to open up, we’ve seen demand for places increase and that’s why we’ve moved back to our old system, but with transition arrangements in place,” Tehan told ABC TV on Monday.

He said struggling parents should look to access financial support. Different arrangements have been made for Melbourne which is in lockdown.

The package was introduced after enrolment numbers plummeted as parents pulled children out of care, because they couldn’t afford fees or were worried about health impacts.

The opposition says it’s too early for it to end.

“Many parents are doing it tough and will need to decide if they pay the childcare fees or pull their kids out of care altogether,” Labor’s early childhood education spokeswoman Amanda Rishworth told reporters on Sunday.

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Federal Opposition Leader Anthony Albanese wants the Government to outline now what will happen to JobSeeker and JobKeeper, instead of waiting till late next week.

Treasury conducted a review of the JobKeeper wage subsidy and the enhanced JobSeeker dole payment which was handed to the government in late June.

However, the findings won’t be revealed by Treasurer Josh Frydenberg until July 23 when he hands down an economic statement.

“The Prime Minister has had the report since June, what’s he waiting for,” Albanese said on Sunday.

-AAP

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