finance

Would you go into debt to send your child to preschool?

The issue of childcare affordability is not going away, particularly as families continue to struggle with rising costs of living. The Australian Chamber of Commerce have suggested a controversial solution. What it help your family?

Childcare costs are crippling Australian families. Even with the automatic rebate of 50%, many families struggle to pay preschool fees that often exceed $100 per child per day. There’s also the incredibly frustrating issue of waiting lists at preschools. It can take up to two years to find a place in some areas.

And for mums desperate to head back to work, who don’t have the luxury of family who can lend a hand, that can be an incredible drain.

The problem is huge. Massive. Gigantic. Astronomical.

And government after government have tried to improve the affordability and availability of child care but the problem isn’t going away. But is this incredibly controversial solution the answer?

Help to pay preschool fees

The Australian Chamber of Commerce have suggested a HECS-style scheme that would be paid later, once the children start school. They have also suggested the automatic rebate be means tested - so families with higher incomes would receive less or potentially nothing at all from the government.

Jenny Lambert is the Australian Chamber of Commerce and Industry Director of Employment, Education and Training. She says childcare in Australia is in exactly the same place that tertiary education was when HECS was introduced and says a HECS-style loan scheme for preschools would address affordability concerns.

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Lambert told Wake Up on Ten, "We think for childcare we should really look hard at this proposal now so that when the very intense period of childcare costs happens, usually when the kids are around six months to 3 or 4 years, and if there's more than one child it really is a very imposing cost on families." "I think if we spread some of that cost that would be fantastic and that's where the HECS-style loans come in."

She believes rather than shifting debt, it simply delays the cost until children start school. Public primary school is much more affordable that preschool. Even Catholic and some private schools cost less than preschool which has seen some children start Kindergarten as young as four-and-a-half in an attempt to relieve the financial strain on the family.

What do you think? Would you go into debt to send your child to preschool if it meant you could return to the workforce sooner? Do you think child care is too expensive? Did you struggle to get your child a place?