With the end of the “free childcare” program being offered to small-business owner mums, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell is calling for affordable options for daycare to be made available by government and daycare providers.
In a statement, Carnell emphasised that with the end of the free childcare program, small-business owner mums are faced with difficult decisions.
“For small business owners – many of whom are mothers – who have been working tirelessly to get back on their feet, childcare has just become unaffordable,” Carnell said. “Many of these young families working in small businesses are relying on JobKeeper, which will not cover childcare fees reinstated from today.
“This could force parents – mothers more often than not – out of their jobs, which is detrimental to their business, their families and even worse for the economy.”
The ASBFEO noted that women make up more than a third of Australia’s small-business owners (38 per cent) and more than five million women work in these businesses. She also noted the recent ABS labour force data which shows women have been among the hardest hit by COVID-19, with female participation rate falling dramatically.
“The government should be monitoring this situation very closely and be considering innovative ways to increase the participation rates for women to ensure productivity gains and to help those in their efforts to get their businesses back on track,” Carnell said. “Our COVID-19 Recovery Plan makes the point that childcare is an essential service for parents in small businesses and needs to be affordable.”
The Ombudsman highlighted a number of ways the government can provide affordable daycare, including making childcare tax-effective or by phasing in an expanded subsidy scheme, which has been estimated to provide a $11 billion economic boost.
“Economists have long referred to the ‘double dividend’ of childcare increasing workforce participation rates and providing early education,” Carnell said. “Equally the government should be monitoring the impact that the reinstatement of fees is having on childcare centres, many of which are small businesses, which have warned of dire consequences of the so-called snap-back to the previous system.”
