New data revealed Australian families faced a fee spike of almost eight per cent in early education and care system. 

Minister for Education and Training Simon Birmingham said the Turbull Government’s initiative to reduce fee increases was not enough to stop the continuing fee spike. 

7.6 per cent increased in child care fees and 6.3 per cent increased in Long Day Care fees. 

“In a climate of slow wage growth to have fees increasing at three times the speed of the economy demonstrates that Australia’s child care system needs to be reformed,” Minister Birmingham said. 

He added that as outlined in the child care reform system, the Turbull Government needs to put downward pressure on fee increases and also provide additional support to families earning the least. 

“The introduction of the hourly rate cap is firstly a necessary measure to arrest incessant child care fee increases and secondly will provide Australian families with a benchmark price so they have a reference point to hold providers accountable and from which they can expect prices shouldn’t dramatically exceed,” Minister Birmingham said. 

Fee increases are requiring families earning less than $185,000 to pay a $7500 limit for child care.   

Low and middle income families will be the greatest beneficiaries from the new reforms as the increased investment will make the system more accessible, affordable and fairer.