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9343
Wed, 06/04/2008 - 12:23
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https://oananews.org//node/9343
The shortlink copeid
Govt to scrutinise childcare sector
The federal government says it will do everything in its power to prevent profiteering among childcare providers when higher tax rebates come into effect next month.
The childcare tax rebate rises from 30 to 50 per cent, or from $4,354 to $7,500 a year, from July 1, but there are fears the benefit to parents could be eaten up by fee rises.
While many childcare centres have hinted at fee hikes of between 2.5 per cent and three per cent, there are concerns some may use the opportunity to introduce more hefty increases.
The nation's biggest childcare provider - ABC Learning - says it is reviewing fees but is yet to make any decisions.
The government concedes there is little it can do to prevent unfair pricing practices but has vowed to monitor the sector.
"I don't think that there are a large number of means that are automatically available to us, but the government will certainly be scrutinising what operators are doing," Treasurer Wayne Swan said.
"We won't be watching all the dough go out the door and ... into the profits of childcare companies. "We will take what actions we can to ensure that increases in prices are reasonable but there are limits to commonwealth power in this area."Deputy Prime Minister Julia Gillard said the government would be speaking with the childcare industry about any increases in fees charged to parents.
"We will be watching prices and we are putting operators on notice that if any evidence emerges of unfair pricing practices, then the government will be ready to use the powers at its disposal to deal with the matter," she told parliament.
The government accepted there are cost increases involved in childcare costs but would make sure they were not unreasonable, Ms Gillard said.
"We are talking at this stage about working with industry to ensure that any price increases are legitimate reflections of increased cost."Opposition frontbencher Tony Abbott said the government had effectively given the childcare centre industry the green light to raise prices.
"This government promised that it would keep prices down, this government promised it would make it much easier for people to send their children to childcare centres," Mr Abbott told reporters.
"Yet it's pretty clear from the policy they've put in place that they're actually going to drive, they're going to encourage price rises well ahead of the rate of inflation."Mr Abbott said the government would be largely powerless to prevent profiteering among childcare centres, adding that its response to fears of exorbitant fee hikes was policy on the run.
"I think that the ALP should have anticipated some of this, and I think what they're now doing is talking about some kind of childcare watch, some kind of price monitoring system, because effectively they're making it up as they go along."
The childcare tax rebate rises from 30 to 50 per cent, or from $4,354 to $7,500 a year, from July 1, but there are fears the benefit to parents could be eaten up by fee rises.
While many childcare centres have hinted at fee hikes of between 2.5 per cent and three per cent, there are concerns some may use the opportunity to introduce more hefty increases.
The nation's biggest childcare provider - ABC Learning - says it is reviewing fees but is yet to make any decisions.
The government concedes there is little it can do to prevent unfair pricing practices but has vowed to monitor the sector.
"I don't think that there are a large number of means that are automatically available to us, but the government will certainly be scrutinising what operators are doing," Treasurer Wayne Swan said.
"We won't be watching all the dough go out the door and ... into the profits of childcare companies. "We will take what actions we can to ensure that increases in prices are reasonable but there are limits to commonwealth power in this area."Deputy Prime Minister Julia Gillard said the government would be speaking with the childcare industry about any increases in fees charged to parents.
"We will be watching prices and we are putting operators on notice that if any evidence emerges of unfair pricing practices, then the government will be ready to use the powers at its disposal to deal with the matter," she told parliament.
The government accepted there are cost increases involved in childcare costs but would make sure they were not unreasonable, Ms Gillard said.
"We are talking at this stage about working with industry to ensure that any price increases are legitimate reflections of increased cost."Opposition frontbencher Tony Abbott said the government had effectively given the childcare centre industry the green light to raise prices.
"This government promised that it would keep prices down, this government promised it would make it much easier for people to send their children to childcare centres," Mr Abbott told reporters.
"Yet it's pretty clear from the policy they've put in place that they're actually going to drive, they're going to encourage price rises well ahead of the rate of inflation."Mr Abbott said the government would be largely powerless to prevent profiteering among childcare centres, adding that its response to fears of exorbitant fee hikes was policy on the run.
"I think that the ALP should have anticipated some of this, and I think what they're now doing is talking about some kind of childcare watch, some kind of price monitoring system, because effectively they're making it up as they go along."
