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Labor to overhaul childcare subsidies if elected in multi-billion-dollar campaign pledge

A federal Labor Government would spend $4 billion over four years to make childcare free for most low-income households, and cheaper for families that earn up to $174,000.

Labor leader Bill Shorten said increasing the current subsidy from 85 per cent of the hourly fee cap to 100 per cent would make childcare free for about 370,000 families, saving them on average $1,400 a year.

But that depends on childcare centres not increasing hourly fees once the subsidy has been boosted, and Labor would ask the consumer watchdog to crack down on excessive increases.

Read the full article at the ABC.

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