An excellent editorial in the AFR today (unfortunately paywalled, buy yourself an AFR!) identifies the core problem with childcare subsidy policies in Australia. The $6.7b from the Commonwealth and the $800m by the states that gets channelled into such subsidies should be skewed much more heavily towards low income earners. Parents earning $160,000 plus annually will still have 60% of their childcare costs covered by taxpayers, those earning $200,000 will get 20% subsidies - these are after the reforms suggested by the Productivity Commission are implemented. Indeed I would go much further than the AFR and look for very substantial cuts in the level of assistance provided across the board.
This childcare aspect of our entitlement society is absurd. The prevailing belief is that even if you earn high incomes the fact that you are a parent gives you a net claim over the incomes of those who are not parents.
People don't have a right to have children that they cannot afford to make a substantial contribution to supporting. Those earning high incomes should obviously pay their own childcare costs. Mothers (or fathers) who find that their incomes are too low to cover childcare costs should either stay at home and look after their children or delay having children until they can afford to by-in-large support their own children. People need to understand that their parenting decisions have consequences that they must bear.
Subsidizing children and having an active immigration program creates high child-raising costs in Australia by driving, in particular, high housing prices. We do not need to have an ever-increasing population - there are plenty of people - and, with less demand for housing, the cost of raising children would fall in accord with reduced market pressures. We would also experience lower infrastructure costs and less unpriced congestion in our urban centres.
This childcare aspect of our entitlement society is absurd. The prevailing belief is that even if you earn high incomes the fact that you are a parent gives you a net claim over the incomes of those who are not parents.
People don't have a right to have children that they cannot afford to make a substantial contribution to supporting. Those earning high incomes should obviously pay their own childcare costs. Mothers (or fathers) who find that their incomes are too low to cover childcare costs should either stay at home and look after their children or delay having children until they can afford to by-in-large support their own children. People need to understand that their parenting decisions have consequences that they must bear.
Subsidizing children and having an active immigration program creates high child-raising costs in Australia by driving, in particular, high housing prices. We do not need to have an ever-increasing population - there are plenty of people - and, with less demand for housing, the cost of raising children would fall in accord with reduced market pressures. We would also experience lower infrastructure costs and less unpriced congestion in our urban centres.