Childcare funding could create more jobs than tax cuts
Posted on: Fri 13 Nov 2020
Almost 450,000 Australians with children under the age of 5 would like to work more hours, but accessibility to childcare services is a massive barrier.
In October, The Morrison government’s federal budget announced tax cuts which they say would help parents pay for childcare, but new macroeconomic modelling released by The Australia Institute this week suggests otherwise.
The report by Dr Janine Dixon from Victoria University compares the cost, employment creation and impact on GDP of increased spending on child care and income tax cuts, and ultimately found increased public funding for childcare is nearly 20 times more effective at creating jobs than a tax cut of the same size.
Dr Richard Denniss, Chief Economist for The Australia Institute, speaks with Breakfast’s Tom Mann and Zoe Kounadis about the findings.
Produced by Soph Landau