The Australian government has warned childcare providers across the country to refrain from taking advantage of the upcoming lift in childcare subsidies to raise prices.
This comes as the federal Labor government’s “cheaper childcare” policy will take effect from July 1, allowing Australian families with young children to claim more rebates for childcare costs.
Federal Education Minister Jason Clare touted the new law’s benefits, saying the average out-of-pocket cost borne by over a million families would drop from $40 (US$26.5) to $27 a day.
While the government currently holds a positive view toward the changes, there have been concerns that childcare fee hikes will eat up any savings provided by the new subsidy rates….