Parents in Sydney and Melbourne have become fearful after out-of-pocket childcare costs could jump if the federal government adopts proposal to set a general benchmark figure. The Productivity Commission has proposed a figure of $7.20 per hour for children aged three to five. There is concern as if a chosen childcare costs most than $7.20 an hour, or $79 per day, parents are expected to cover the extra cost. Parents are worried after childcare out-of-pockets costs are set to skyrocket with a new benchmark figure . The benchmark figure is set to be $7.20 an hour with parents expected to cover the extra costs . Parental advocates 'The Parenthood' believe that this could leave families worse off, depending on where they live and how expensive their local childcare is. The average price of childcare in Sydney CBD is $138 per day and in Melbourne CBD it is $107. The childcare package will sees parents out-of-pocket after covering the excess as most childcare centres in Sydney and Melbourne cost more than the benchmark price. There were previously two basic forms of subsidised payments the Sydney Morning Herald Reported. The childcare benefit saw parents who were working or studying 15 hours a week with an annual income under $43,000, have up to 100 hours of childcare covered. The average childcare price in Sydney CBD is $138 per day and in Melbourne CBD it is $107 . This scheme will take place of both the childcare rebate and the childcare benefit . The childcare rebate covered 50 percent of out-of-pocket expenses up to $7500 a year without means testing. The Productivity Commission wants to rolls both of these benefits into one that is paid straight to the childcare provider. This new scheme is reported to be means tested with most parents needing to work at least 24 hours a fortnight to qualify. The government is expected to release its childcare package in the coming weeks.
Parents in Sydney and Melbourne are worried after out-of-pocket childcare costs may skyrocket if new benchmark figure is adopted . The Productivity Commission proposed $7.20 per hour as the benchmark . Parents will have to cover extra cost if childcare is over $79 a day . Average price for Sydney childcare is $138 per day and $107 in Melbourne .