Child-care
By Kath Gelber
The federal government's decision to shelve the proposal to means test the child-care rebate was made much more on the basis of economics than on social justice. Economists warned the move would not bring a significant enough saving to the government to wear the potential political backlash.
Nevertheless, the mooting of restrictions to child-care support happens regularly at budget time, and has again raised some important issues.
In September 1994 the federal government introduced the Home Child-Care Allowance, paid to the spouse who cares for the children. It was set at a maximum of $30 a week, and means tested on the current income of the dependent partner. This means the partner who cares for the children, and therefore cannot earn a full-time income, receives the payment, regardless of the income of their working partner.
Other forms of financial relief for the costs of child-care that are currently available include a child-care fee subsidy which is also means tested, and indirect support through government subsidies for the operating and capital costs of some child-care centres.
The various subsidies available are complemented by the Basic Family Payment and the Additional Family Payment, also both means tested, available to low- and middle-income families with children under 16.
All in all, support for child-care is already significantly restricted. Parents often complain of the difficulty of even finding a place in an appropriately located centre and at an affordable price, and often on short notice if a job offer has been made. The means tests already in place only to these difficulties.
The Liberals have proposed a system of tax deductions for the costs of providing child-care to parents who work. Tax deductions are inversely means tested because they are linked to what you earn. They provide the biggest financial savings to high-income earners. They also institutionalise child-care costs as a specifically work-related expense.
This approach undermines one of the cornerstones of the movement for the provision of child-care support to parents: that it is a right for all parents to be able to work, or study, or have a break, and to be able to find affordable and appropriate child-care in order to make that possible.
It is not too late to revive these demands. “Free child-care for all” remains as relevant a demand today as it ever was. And we are still a long way from winning it.
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