Childcare was one of the biggest single spending measures in Labor’s campaign,which includeda $5.4 billion pledge to increase subsidies for 96 per cent of families.
Under the plan,Labor would lift the maximum childcare subsidy rate to 90 per cent for families for the first child in care and increase subsidy rates for every family with one child in care earning less than $530,000 in household income.
Kean is working on a policy to be presented to cabinet’s expenditure review committee,which could include delivering government-run services in areas that are lacking in availability.
The state’s intervention into childcare,which is run by the Commonwealth,could improve so-called childcare deserts where demand significantly outstrips supply,affecting women’s workplace participation rate.
NSW Treasury modelling shows that 568,700 NSW children (or 35.2 per cent) aged four and under live in a so-called childcare desert,which researchers define as an area with fewer than 0.333 childcare places per child.
NSW Labor is convinced that Kean will raid a $7 billion productivity and COVID-19 contingency fund,known as Bounce Back Better and announced by Kean in the December half-yearly review,to pay for his childcare reforms.