The government should increase the childcare subsidy for families on low to medium incomes — either temporarily or permanently. This would involve increasing the highest subsidy rate from 85% to 95%.
The government's emergency relief package for childcare centres has kept many from collapsing financially due to COVID-19. The transition to other arrangements must be slow and carefully managed.
Childcare will be free for many Australian parents to help families and a struggling sector through the COVID-19 crisis. But there is much confusion around how this new system works.