Coalition to slash child care to fund PPL?

Wednesday 3 December 2014

The Australian has reported today that the Abbott Government is considering overhauling childcare subsidies in a bid to pay for its paid parental leave (PPL) scheme:

A troubling economic slowdown is forcing a reassessment of the PPL scheme, including the offer of 26 weeks of paid leave at a new mother’s full pay up to an annual salary cap of $100,000.

The new childcare policy will alter $7 billion in annual spending in response to a Productivity Commission inquiry that recommends simpler payments to families but tighter controls to scale back benefits to the wealthy. The policy will also incorporate an adjusted PPL scheme aimed at improving conditions for women and lifting their participation in the workforce.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.