Key Points
- From 1 July, the federal government's childcare subsidy will be increased.
- However, many parents have reportedly received notice of upcoming price hikes from childcare centres.
- Some of these reported price hikes would entirely erode the benefit of the increased government subsidy.
Melbourne mum Laura's childcare fees for her three-year-old son have already been hiked this year.
So she was shocked to hear yet another increase was on its way.
She says the day care centre staff told her a few weeks ago to expect another price rise of around $7-10 a day soon.
“You sort of can't win,” Laura told SBS News.
“And I'm not getting a pay increase. It's just like, when does it stop?”
Laura, who works in education, says she's now paying $30 a day more than she was two years ago.
And the timing couldn't be worse.
'Opportunistic': Daycare fees eating into government fee help
The Albanese government’s childcare changes are due to come into effect on 1 July 2023.
Over a million families are expected to benefit from the increase to childcare subsidies, with the maximum subsidy increasing from 85 to 90 per cent.
Most families have been promised cheaper childcare under the changes, while some higher-earning families previously unable to claim fee help, will now be able to.
Parents have taken to social media in droves to report announced fee increases at their children's day care centres.
Some parents have been told the fee hikes reflect higher wages, as well as rent and food costs.
SBS News spoke to several parents who've received fresh fee notices from day care centres. Some say the sudden increase in daily fees will erode the benefits of the government's changes.
Brendon, a father from Melbourne who also did not wish to give his surname, said his children's day care fees have increased by $1.60 an hour. He was expecting to receive $1 an hour extra in subsidies from the government from 1 July.
"The difference there is just the day care basically taking it back," he said.
"We would be better off and now we're less better off. And I feel, for sure, some of it's opportunistic."
Advocacy group The Parenthood says it has heard from many parents in the last few weeks who've received fee increase notification letters from early learning providers.
"We know that families who are receiving these letters of fee increases are feeling incredibly deflated because they have been holding out for affordability relief," executive director Georgie Dent said.
"To get to this moment where they have been holding out for relief and to have that taken away is incredibly deflating."
Ms Dent said the cost of living crisis was also impacting childcare providers.
"There is a legitimate case in lots of instances for services to be putting up their fees because we know the cost of everything is going up," she told SBS News.
Melbourne mum Katie Roberts-Hull is now considering moving one of her two children from their day care centre after receiving notice of an 11 per cent increase in daily fees.
“It was a bit shocking even though, you know, we would have expected some increase (in government subsidies), but I guess just the total amount is a huge percentage increase,” she told SBS News.
“I was just surprised really, and a little bit worried.”
Ms Roberts-Hull says she understands day care centres were also experiencing cost increases but she worries about the timing.
“I assume they probably did wait for the fee increase, like, it's definitely linked,” she said.
“I don't know if the childcare subsidy hadn't been increased so dramatically if they would have the same fee increase – probably not.”
What's being done about high childcare fees?
The latest government data shows childcare fees have increased in the past year.
The average hourly fee was $11.20 in September 2022, up 6.2 per cent from the September quarter 2021, according to the federal Education Department.
The government implements hourly rate caps and most centres - around 80 per cent - currently charge at or below that cap.
Childcare fees are being monitored by the Australian Competition and Consumer Commission as part of an ongoing inquiry. An interim report from the consumer watchdog is due to be handed to Treasurer Jim Chalmers on 30 June, a day before the government's subsidy changes come into effect.
Prime Minister Anthony Albanese says his government is monitoring prices.
"What we will continue to do is to monitor those issues, but we're very confident that this will make an enormous difference," he said on Saturday, referring to the fee help changes.
"Of course, over a period of time, childcare fees have increased. We're conscious of that."
Parents say they're not being heard
Laura says her family had been looking forward to getting some relief from the government scheme and is now unsure how she will benefit given the fee hikes.
“We were actually really excited because I thought, ‘This is great, we'll save so much money and it won't be so hard,'” she said.
"But there's no-one to complain to."
