Kean made the plea to the federal government as he prepares to introduce legislation to the NSW parliament on Wednesday to establish a $5 billion childcare and economic opportunity fund.
NSW is urging the federal government to bring forward its childcare subsidy reform.Ryan Stuart
The fund was a key plank of the government’s childcare reforms,a cornerstone of the June state budget,which will provide grants to childcare providers and organisations to build new or expand existing infrastructure.
However,while NSW’s intervention into childcare will boost supply in so-called childcare deserts,the state needs the federal subsidy program to make care significantly more affordable.
Kean wants the federal government to bring forward its subsidy policy from July 1 to January. However,federal Treasurer Jim Chalmers has already indicated that the almost $1 billion cost of starting the childcare policy on January 1 was unaffordable.
Speaking last month ahead of the two-day job summit,Chalmers conceded that the economic dividend its childcare policy will deliver was not an excuse to spend the extra money up front.
However,Kean is insistent that introducing the policies in tandem would address rising costs of living as well as getting more women into the workforce.
“Families across NSW are set to save thousands of dollars on their preschool costs from January 1,2023,under the NSW Government’s preschool fee relief program,” Kean said.
“If the Commonwealth Childcare Subsidy changes kick in at the same time,it would further relieve cost of living pressures on parents and open up career opportunities for women.”
Kean said the changes to the Commonwealth childcare subsidy as well as NSW’s reforms would boost family incomes as well as the budgets of both governments.
“Families in NSW will save thousands of dollars a year on childcare and preschool costs,meaning up to 95,000 women are forecast to be able to take up more career opportunities and strengthen their financial security,” Kean said.
“The expected increase in the NSW workforce due to these reforms will also increase Commonwealth revenue,making up to an additional $2.5 billion available for public services and infrastructure projects in the next decade.
“The Commonwealth can help solve the nation’s labour shortages by fast tracking its childcare reforms,which is a key way to unleash thousands of trained women wanting to re-enter the workforce.”
NSW Minister for Women Bronnie Taylor said access to affordable,quality early childhood education and care is a massive barrier to women re-entering the workforce.
“The fund will invest in proposals that address this while easing cost of living pressures on families,” Taylor said.
“These could be initiatives designed to boost supply in childcare deserts including in western Sydney and regional NSW,and trialling night and weekend operating times to support parents who work outside standard business hours.”
NSW Minister for Education and Early Learning Sarah Mitchell said eligible childcare service providers and organisations would be able to apply for funding in 2023 once the bill passed.
“Ultimately,this boost for families will be a boost for the early childhood education and care sector as well,and we will be consulting with the sector to ensure that we can sustainability support them,the children they support,and NSW families,” Mitchell said.
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