Working families could get hip-pocket relief if more PPL money went back into childcare. Picture: Supplied Source: ThinkStock

CASH-strapped working families would save hundreds of dollars a month if the federal government diverted $1.5 billion from its paid parental leave scheme and put the money into childcare subsidies.

New modelling obtained by News Corp Australia shows working mums and dads could save between 18 and 32 per cent on their soaring childcare bills, if Tony Abbott accepted the draft recommendation of the Productivity Commission and invests in childcare rather than a generous paid parental leave scheme.

The Coalition’s PPL scheme will be changed this year. Picture: Supplied Source: ThinkStock

The modelling, by lobby group The Parenthood, will put further pressure on the government to reprioritise spending on childcare as it develops its families’ package and a new PPL scheme in the lead up to this year’s federal budget.

It shows a family, with a combined annual income of $60,000 and two children in care three days a week, would save $78 each week if there was an additional $1.5 billion spent on childcare subsidies.

Parents could save hundreds a month if there was more federal government money for childcare subsidies. Picture: Supplied. Source: Supplied

A family with a household income of $100,000 would save $66 a week on out-of-pocket childcare fees, while a family with a combined income of $150,000 would save $89 each week.

The savings are based on the assumption that parents are paying $90 a day for childcare, which is significantly less than many families pay for expensive inner-city childcare centres, and the government accepts the Productivity Commission’s suggestion of a single means-tested childcare subsidy.

Childcare costs could decrease by between 18 and 32 per cent under the plan. Picture: Supplied Source: ThinkStock

The Parenthood’s executive director Jo Briskey said she wanted to see the government spend more money on improving the quality and affordability of long day care and family day care before it considers extending cash subsidies to nannies.

“We believe targeting increased investment this way would reach more families and is also where government will get the best bang for buck in terms of productivity,” Ms Briskey said.

“Mothers are saying to me right now they are being forced to rethink how much they can work because childcare is just too expensive and their subsidies run out,” she said.

Mums are rethinking whether to go back to work because childcare costs are so high. Picture: Supplied Source: ThinkStock

After a sustained campaign from the Coalition backbench, the Prime Minister last year said he would redesign his divisive gold-plated PPL scheme so there is more money to invest in childcare.

The federal government is expected to develop a holistic families’ package this year, which would include funding for PPL, for childcare and for in-home nannies.

ENDS

FAMILY INCOME

$60,000

CURRENT OUT OF POCKET CHILDCARE COSTS

$132.29

OUT OF POCKET CHILDCARE COSTS IF THERE WAS $1.5bn MORE FOR CHILDCARE SUBSIDIES

$54

OUT OF POCKET COST DECREASE

19%

FAMILY INCOME

$100,000

CURRENT OUT OF POCKET CHILDCARE COSTS

$174.18

OUT OF POCKET CHILDCARE COSTS IF THERE WAS $1.5bn MORE FOR CHILDCARE SUBSIDIES

$108

OUT OF POCKET COST DECREASE

18%

FAMILY INCOME

$150,000

CURRENT OUT OF POCKET CHILDCARE COSTS

$264.04

OUT OF POCKET CHILDCARE COSTS IF THERE WAS $1.5bn MORE FOR CHILDCARE SUBSIDIES

$175.50

OUT OF POCKET COST DECREASE

32%

•Source: The Parenthood