
Most read
Pros and cons: Working in the gig economy...
Pros and cons: Working in the gig economy...

Latest Podcast
Is the market overheating; should ETFs take your fancy, and what’s happening t...
Is the market overheating; should ETFs take your fancy, and what’s happening t...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Save
9 in 10 families struggle to keep kids in childcare
As the government’s childcare subsidy ends and payments revert to pre-COVID status, nine in 10 Australians have said that it will be a financial burden to send their children to childcare, new research has found.

9 in 10 families struggle to keep kids in childcare
As the government’s childcare subsidy ends and payments revert to pre-COVID status, nine in 10 Australians have said that it will be a financial burden to send their children to childcare, new research has found.

New nationally representative research from comparison site Mozo has noted that due to high financial strain, 73 per cent of families have considered reducing hours or taking their child out of daycare.
“In Australia, daycare is a major expense for working families, so the government’s free childcare program was welcomed with open arms. The average weekly cost of a child attending daycare for 24.8 hours is $246,” Kirsty Lamont, Mozo director, said.
The childcare subsidy, which was introduced to help families during the COVID-19 pandemic, was a windfall for many families, allowing them to increase savings or pay the bills, Mozo noted.
Mozo’s research also showed that unlike other schemes, only 1 per cent of parents were using the money for non-essential items such as a new television or laptop.
“This government initiative has put thousands back into the pockets of parents across the country, and for some, it has been a financial lifeline,” Ms Lamont said.
“With COVID-19 bringing a wave of job cuts and reduced hours to many Aussie workers, it’s little wonder that the reintroduction of childcare payments will have a sting in its tail for many families. Unfortunately, this may also have an unfortunate effect on childcare centres across the country as enrolments take a dive.”
Mozo estimates that with many parents looking to either reduce hours or pull their children from daycare, $150 million will be wiped out of the childcare industry each week.
With more than half of parents with children under six having their children in daycare, the change to childcare payments will have a widespread impact on Australian families, with approximately 1.4 million children attending childcare centres across the country.
Victorians were most likely to reduce childcare hours, with 44 per cent of parents considering reducing hours, while parents from NSW were most likely to completely pull their children out of daycare, with 59 per cent saying they were considering it.
“If childcare costs resuming is causing financial strain, the first step is establishing a clear idea of your incomings and outgoings. Mozo research found that 29 per cent of Australians had either no budget or only a rough idea of their finances in their head.
“If you’re flying blind with your spending, there’s every chance you could be struggling to meet your outgoings. Whether it’s crunching the numbers on a spreadsheet or using a budgeting app, there are many ways to balance the books,” Ms Lamont concluded.
About the author

About the author


Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more

Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

Expenses
Half-price flight scheme launches today
Aussies are being offered half-price flights as the government looks to spur domestic travel to regions it has defined as key to economic recovery. ...Read more

Expenses
Insurance prices rise despite payout falls
The COVID-19 pandemic has seen insurer payouts fall by $500 million, but Australian consumers are continuing to pay more, the consumer watchdog has revealed. ...Read more

Expenses
CBA cops civil proceedings for overcharged interest
ASIC has commenced civil penalty proceedings in the Federal Court against the Commonwealth Bank over the bank charging an interest rate on business overdraft accounts that was substantially higher tha...Read more

Expenses
What are the top 10 most expensive cities in the world?
Logistical issues and currency fluctuations caused by the COVID-19 pandemic has seen the most expensive cities in the world drastically change, new research has revealed. ...Read more

Expenses
Sydney adviser pleads guilty to misappropriating $2.9m
A Sydney financial adviser has pleaded guilty to misappropriating $2.9 million in his clients’ funds. ...Read more

Expenses
Telstra set to refund 10,000 customers
Ten thousand past and present Telstra customers are entitled to a refund due to being overcharged a total of $2.5 million. ...Read more

Expenses
iSelect in hot water for energy plan comparisons
Comparison tool iSelect has been ordered to pay $8.5 million in penalties for making false and misleading representations about its electricity comparison service. ...Read more

Expenses
Pandemic puts stopper in big spending
Two-thirds of Australians have seen their finances impacted by COVID-19, according to new research – and it’s affecting everything from holidays to houses and careers. ...Read more