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Opposition says fee cap ‘wrong and misleading’

Federal Shadow Minister for Education Kate Ellis during House of Representatives Question Time at Parliament House in Canberra on Tuesday, Nov. 10, 2015.
Federal Shadow Minister for Education Kate Ellis during House of Representatives Question Time at Parliament House in Canberra on Tuesday, Nov. 10, 2015. AAP Image - Mick Tsikas

ONE in four families will feel the pain of sky-rocketing childcare fees over the next 18 months.

The National Centre of Social and Economic Modelling's finding that fees could hit $210 a day is backed by Opposition education spokeswoman Kate Ellis.

Ms Ellis said yesterday the Federal Government was "wrong and misleading" in its claim that a fee cap would ease the financial burden on parents.

NATSEM predicted families would pay up to $210 a day for child care in the 18 months before the government's means-tested subsidies roll out in July, 2017.

However, Education Minister Simon Birmingham said parents should "shop around" for the best price as the government moved to limit fees to $11.55 an hour.

"I would encourage parents to scrutinise very carefully what they're being charged and quiz those sorts of service providers," Mr Birmingham said.

Ms Ellis rejected Mr Birmingham's cap claim.

"Independent analysis by NATSEM has shown these new caps on assistance are one of the main reasons the government's proposed changes will make one in four families worse off," she said.

"There is nothing in the legislation before the Parliament - or in any government policy - that will limit childcare fees," she said.

"The only caps and limits are on the assistance the government proposes to provide to families.

"Effectively this caps assistance for families at $9.75 per hour."

- APN NEWSDESK

Topics:  child care labor party


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