A new report into Australia’s childcare system has suggested that a means-tested rebate covering the use of nannies be made available to families.
The Productivity Commission's draft report into childcare and early childhood learning will be handed to the government this month.
The report suggests that secondary tax earners – mainly women – face extremely high tax rates, and calls for the end of non-means-tested government assistance for childcare.
The report also calls for a nanny scheme to give families who don't work regular hours access to in-home childcare around the clock.
The report comes after the government requested a public inquiry into childcare options and early childhood learning with the aim of supporting workforce participation.
Tony Abbott has previously said that the rebate should be a "universal family benefit" and the coalition had no plans to means-test it.
He told Macquarie Radio on Wednesday that the government had not received the commission's report but was expecting it.
Asked whether means-testing should be extended, Mr Abbott said: "I'm certainly not saying that everything's got to be means-tested by any means - I just think we need an affordable and accessible system.
"A stronger childcare sector, along with a fair dinkum paid parental leave scheme is a very important part not just of good family policy but of good economic policy."
Means-tested childcare rebate
The current rebate is not means tested and provides parents with 50 per cent of their childcare costs. Under the proposed scheme, families with very high incomes will receive less than those on low incomes.
Who opposes it?
- Business groups, with the exception of the Australian Chamber of Commerce and Industry
Who supports it?
- ACTU
- Unions NSW
Labor childcare spokeswoman Kate Ellis said means-testing the rebate would make it harder for families to make ends meet.
"Tony Abbott has already announced more than $1 billion in cuts to childcare support," she said.
"By making such massive cuts before the Productivity Commission has even delivered its draft report, the government has seriously undermined the whole review, which was set up to make recommendations on access to affordable childcare."
Do you support a means-tested childcare rebate? Have your say in the comments section below or tweet @SBSNews
Share
