Today ABC Learning indicated that it has undertaken a substantial review of its pricing structure and will increase fees from Monday 30 June 2008.
ABC Learning claims this increase is necessary for a variety of reasons including meeting higher wages and operational costs.
ABC Learning will have to justify the size of this increase to parents using its services.
The Rudd Government wants to ensure parents have access to the best information available on fee comparisons and that is why we have asked child care service providers to supply information about fees.
This is a starting point for increased competition and improved transparency in the child care sector.
We cannot turn around more than a decade of neglect of child care, but unlike the previous government we are taking action to improve competition, and deliver high quality, affordable and accessible child care.
We will establish up to 260 additional early learning and child care centres over the next six years. This will increase the supply of child care places in areas where the market is failing to meet demand, putting downward pressure on fees. We will be looking for providers with a track record of affordability to operate these new services.
The Rudd Government recognises that child care is an additional cost for families. That is why we are increasing the Child Care Tax Rebate from 30% to 50% of out of pocket child care costs, starting from 1 July 2008. This payment is not income tested, and can be made quarterly or taken as an annual lump sum payment. Parents and guardians who are working, studying or training can receive up to $7500 per child in approved care for out of pocket costs.