Parents fume over childcare costs on Easter public holidays: 'Money down the drain'
While some 'understand' why childcare centres still charge on days they're closed, others don't agree parents should pay.
Australians looking forward to enjoying successive public holidays this Easter long weekend are shocked to learn that those with kids in childcare will likely be paying the usual fees even if the centres are closed on Friday and Monday.
Ben Parnham's young daughter usually goes to her Queensland daycare on Mondays and Fridays except when it is closed due to public holidays, which means this weekend she will be missing her next two days.
"Do you want to hear something ridiculous?" Ben asked online rhetorically. "They’re charging us anyway. A casual $300 down the drain."
Ben is not the only one distressed at the concept. Sydney mum Georgia told Yahoo News Australia she finds the public holiday childcare payments "ridiculous" considering how many parents are already struggling.
"I know the industry is struggling itself but so are many parents who are battling high interest rates on their mortgage," she said.
Similarly, those who had seen Ben's video online shared their frustrations. "Daycare fees are such a joke considering the educators are paid basically minimum wage," one said.
"My son's daycare asked me to keep him home the week between Christmas and New Year's Eve because staff wanted a holiday, and they charged me for the whole week," another added.
Some parents defend childcare public holiday fees
Ben and other parents made it clear they "understand why" it is the case, with staff still needing to be paid for the public holidays, but they are still stressed by the expense nonetheless. While others disagreed completely, asking why childcare centres should be "different" to any other school or workplace.
"Any other workplace won't be making revenue and they still have to pay their staff... so why is it different in childcare?" one asked. "That’s because they have to pay staff like any other business," another pointed out.
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Providers 'choose' to charge for public holidays
The Department of Education told Yahoo "fee charging practices are a commercial decision" made by the providers and while some "choose to apply discounted fees, or not charge when children do not attend care", it is flexible.
"This kind of flexibility for families is strongly encouraged by the government," a spokesperson said. "There are no provisions within the Family Assistance Law that oblige providers to charge fees on public holidays."
A slight reprieve for eligible parents in Australia is the Child Care Subsidy from the government which some are entitled to and pays for part of the daily childcare fee. For those charged a fee for public holidays, they are entitled to use one of the 42 absence days given per child, per year — which means the fee for this day will be subsidised in part also.
Childcare profits examined by ACCC inquiry
The Australian Competition and Consumer Commission (ACCC) released its final report on childcare in January after an inquiry, trying to gain "insight into the factors driving fee increases" in the Early Childhood Education industry.
The report states childcare fees across all services have grown "faster than inflation and wages" since the introduction of the Child Care Subsidy and "revenue in childcare services is forecast to grow 4% year on year between 2023 and 2028".
Despite this and public perception, the report also stated on average, "profits do not appear excessive" across the sector and around 25% of childcare providers "structured as companies" are "making almost no profit or suffering a loss".
This does not necessarily mean some larger providers are not making a big profit though. G8 Education, for example — an ASX-listed provider with more than 430 centres across the country — reported $56.1 million in profit after tax in 2023 according to their annual report, a 53.1% increase.
"Large for-profit providers of centre based day care minimise childcare labour costs by paying closer to the award, and hiring less experienced teachers," the ACCC said in their findings.
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