Labor's pledge to boost childcare wages 'a handout to big business'

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Labor's election promise to boost childcare workers' wages using taxpayer funds comes under fire from a respected economist, as small childcare operators complain the policy will push them into paying payroll tax for the first time.

But Emma Lewis, childcare centre director at not-for-profit Good Start Early Learning in Wynnum West in Brisbane, said anything which boosts the wages of early childhood educators would be welcome."How are they supposed to get a mortgage, live a life, have holidays, good holidays, which they need, on that much an hour?Childcare has very high worker attrition rates, with 38 per cent of qualified educators leaving the industry within three years of joining.

Professor Breunig told 7.30 that childcare workers deserve to be paid more, but"whenever governments try to set prices there are lots of unintended consequences". Get key political stories and analysis straight to your inbox, including special election coverage from Annabel Crabb.But 7.30 spoke to several small-scale childcare providers that confirmed the policy could have payroll tax implications, and workers' compensation insurance costs.

Ms Rishworth did not respond to a written question about whether Labor would cover any payroll tax implications.

 

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Just wondering if this is going to be offered to ever single worker that earns 38k or less. Are they going to practice discrimination. Certainly the people working in childcare deserve to earn more but why should all taxpayers pay for it and not the end users and the companies

You mean Labours pledge to boost childcare wages if you join a union?

This is effectively a public service now, it's time to cap how much they charge and what the business earns - not just keep giving them more of my money!!!

PeterDutton_MP must be conflicted then. If Libs win, he’s sorted. If Labor win, he thinks the family business is going to go gang busters! Maybe that’s why he sold his Canberra apartment.

much will depend on the design detail and role of FWC

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