Parents Cop Bill For Rise In Cost Of Care

Illawarra Mercury

Tuesday June 24, 2008

By KELLY BURKE and AAP

PARENTS will pay about 11 per cent more for daily child care at ABC Learning Centres after the company said it had to put up fees to cover higher operating costs.

ABC Learning said the $6 rise, to about $62 a day, meant its rates would still be below the Federal Government's long day care estimate of $64.40 a day.

The new fees apply from June 30.

There are ABC centres in Shell Cove, Kanahooka, Corrimal and Mangerton.

The Federal Government warned child-care suppliers last week that it would not tolerate sudden fee hikes ahead of the increase in the child-care tax rebate from 30 to 50 per cent from July 1.

Deputy Prime Minister Julia Gillard said the Government had asked all child-care centres to provide tables showing what their fees were at the beginning of the year and any proposed increases. The data will be published on a website, allowing parents to compare costs.

"We've made it clear to child-care providers that whilst we understand that there are real reasons from time to time for increases in costs ... we do not want to see any unfair pricing practices emerge," she said.

"We're certainly going to be keeping our eye on it."

ABC Learning said it was making the change following a 15 per cent rise in its wages bill in the past two years.

"In reviewing its fee structure, ABC's first priority has been to minimise out-of-pocket expenses for families and continue our commitment to lower than national average fees while balancing our increased operating costs ... We have had significant increases in fuel, rent, food, educational equipment and other costs," it said.

The company will also standardise child-care rates across its centres in Australia, eliminating differences between its existing and acquired centres.

"Given that our core service, being quality of care, education, facilities and programs, does not vary by centre or by region, ABC has sought to adopt a common pricing strategy by geographic region," it said.

"Differences in fees have occurred over the last few years as acquired centres were not immediately brought onto the ABC pricing structure."

It will provide estimates of the impact of the new fees and the 50 per cent child-care tax rebate.

"The positive impact of the ... changes to the child-care tax rebate will mean the majority of families will have a net decrease to their out-of-pocket fees from July," it said.

As the new rebate won't apply until July 7, ABC Learning said it would "subsidise" the first week.

© 2008 Illawarra Mercury

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