Jen Dalitz
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Dog Farm Stays


Abbott’s nanny plan – can we all just calm down and get clear on the facts?

Friday, March 30, 2012

Ever since Tony Abbott, leader of the Opposition, announced his plan last weekend to consider an extension of the childcare rebate to include in-home carers – or nannies – there’s been a flurry of activity, criticism, misinformation and debate from politicians, journos and the general public. Perhaps it’s time we all took a deep breath and considered the reality of his proposition.

Last year on International Women’s Day I launched a petitionMake Care Fair – to get childcare back onto the political agenda. It came after research I conducted into the impact of childcare on women’s careers – 48% of women said the cost of childcare negatively hit their career but not their partner’s career. 

And after almost two years of researching, talking about and reporting on childcare options for Australian families, I know that a lot more.  I also know that what Abbott is proposing is exactly what hundreds and thousands of Australians have told me they want (in my earliest research 86% of women said they would give their vote to the party with a better policy on childcare for working families – it’s clearly a hot public issue).

Yet Kate Ellis, Minister for Childcare, has dismissed Abbott’s suggestions as nothing more than middle class welfare, a thought bubble.  "I think that when we have a look at nannies we see that they're often chauffeurs, they're often chefs . . . some of them do ironing, some of them do the washing and the household chores," said Ellis on Tuesday. “This new policy is undeveloped and uncosted and will hit hard-working, low-income families who rely on childcare the hardest."

This kind of politicking drives me crazy.  Who is it really appealing to? And how does it help families, kids or the productivity of Australia?

I know absolutely - from my research and experience – that there are too many myths and misconceptions about childcare and nannies and the haves and the have-nots.  It’s time we set the record straight.

Myth #1:  Nannies are for the super-rich.  Wrong.  I’ve received 2,000 signatures and comments on the Make Care Fair petition and many of the contributors paint a picture of working class families who are struggling – financially, emotionally and logistically.  One woman told me she sold the family car to pay for childcare (the bond payment just to SECURE a childcare place is in the thousands of dollars at some centres). Many former defence force personnel said they left work because they couldn’t find childcare to suit their working hours. And hundreds of regular, working class families have commented saying they use nannies and in-home care because it’s the only option given their long commute times, the impossibility of navigating pre-school wait lists or of holding down a full time job when work hours and school hours are at a complete mismatch.

Myth #2: The current system is affordable and works.  Wrong.  Ask anyone what the greatest obstacle is to getting back to work after kids, and they’ll tell you it’s the availability of quality, affordable care. The waitlists for daycare places are out of control.  The number of parents who’ve told me they cannot get places in their local daycare centres is stunning.  Unless of course you can actually choose the hours and days that you work – and therefore take an odd random day that might be available – which most of us can’t). Dozens of nurses have told me they couldn’t work – even part time – after having kids because no childcare centres open for shift workers’ hours (and in any case who wants to take their child to an unfamiliar place while they’re doing night shift?) And as to affordability – yes if you’re on the lowest income levels you’ll get government subsidization of your fees.  Anyone above the “average” income will pay full tote odds, which means upward of $140 per child per day in major capital cities.  No wonder parents tell me that it’s not worth it – financially – for the second parent to work once childcare is factored in. Even when that second parent WANTS to continue her career.

Myth #3: Government knows best. Wrong.  Parents know what’s best for their family, always have and always will.  Many policy makers say that daycare centres are better for kids than the “unregulated care” that nannies provide.  For the record, I’m a fan of the daycare system – which is why I currently spend 3 hours daily driving my son to and from pre-school in the nearest country town.  But it doesn’t cover the after business hours requirements of my work – or the times when I’m required to travel – and I know many of you are in the same boat.  And for some parents, in-home care is the only option that brings the peace of mind they need to perform well at work.  Particularly with very young children who are still building their immunity, and in the early days as parents transition back to work and get used to leaving their little ones.  If parents seek more individualized service, in line with their needs, during these times then who’s to say it’s a bad thing?

Myth #4: Childcare support – and nanny rebates – devalue the role of stay at home parents.  Rubbish.  According to some, Tony Abbott’s suggested review of the childcare system denies parents the choice of staying at home and raising their children themselves. “Why would anyone want to raise their own children if they could hire a nanny to do it for them?”  This is just nonsensical.  Parents who choose to stay out of the workforce while raising their kids do so for a variety of reasons, mostly personal, and no one is saying they can’t do that.  And if others choose to work – and get a fraction of their costs back through the rebate system – well why should it (or would it) influence another parent’s choices.  But here’s the thing: working and raising kids are not mutually exclusive.  It’s 2012 – not 1950 – and we need to stop judging, take perspective and have faith in the choices we make.  Irrespective of what others think, say or do.

Myth #5: Childcare support is just middle class welfare.  Read any of the articles on this issue and you’ll always find comments posted along the lines of “parents choose to have kids; why should society pay for it?”  Well that depends on what you’re asking society to pay for.  A Joint Senate Committee into Childcare in 2006 found that for every $1 the Government spent in this area, they get back $1.86 in revenue from improved participation rates. So it does make financial sense.  Limiting childcare support to those on low or no incomes removes an important incentive to get higher earners back into the workforce and contributing to the tax-funded system in the first place.  But remember, it’s just an incentive, a token gesture: at present the childcare rebate is 50% of fees paid, to a MAXIMUM amount of $7500 per year.  The full amount of childcare fees is not covered – which in the case of a full time place in a childcare centre will be over $30,000 per child per year (from after tax earnings) in our major cities.  A nanny costs a lot more and NO ONE is considering for a moment that the full amounts be covered by the tax payer.

I could continue for days on this issue – and I haven’t even touched on the reasons why women would CHOOSE to work after kids (there are many and it’s a separate issue to why we should support that desire on their part).

Really, let’s open our eyes and ears on this issue and consider why so many have said they support Abbott’s suggestion of a complete rethink on childcare.  Without doubt, it’s time.

Alison commented on 30-Mar-2012 12:33 PM
Thank you thank you Jen! I'm so sick of politicians and the media telling me I'm a rich snob because a nanny would help me stay at work once my daughter is at kinder (which, unlike daycare, finishes at 3pm). Our family is squished into a tiny house and
it's touch-and-go whether it's worth it for me to go back to work at all. We're not rich, we're just trying to get by. I don't expect a hand-out from the government, but I do expect to make a financial contribution to society through taxes and use of my discretionary
income. I can't do this if childcare costs are prohibitive. And it might be my "choice" to have children, but I'm raising the next generation of taxpayers who will be supporting the ageing population (including retired pollies)!
Sharon commented on 02-Apr-2012 07:34 PM
Hi Jen Thanks for another great article. From personal experience I know the value of 'Nannies / Au pairs /In- house help'. As a single mum of three children aged 4, 7 and 9 I had to return to full time work to support my three children on my own. Each
morning I would drop my little ones to both a day care centre and a before school centre before commencing a full days work. At the end of the day I would be rushing to pick them up from the two centres by 6pm each night. Sometimes we would have to buy groceries
on the way home followed by the usual cooking, dinner, homework, baths and bed routine. It was exhausting and I was worried for my little ones suffering through long days for the rest of their school years. After 6 months I thought this can't continue and
decided to employ a live in au pair. Of course there was no government assistance for this and it just meant I had to work harder to make sure I could pay for the help that allowed my children to be at home. We were definitely NOT wealthy and it was out of
necessity that I worked long hours. I was paying taxes and contributing to society. If I used the before and after school care I would have received government assistance. I applaud any support that allows children to be cared for in their home.
Anonymous commented on 19-May-2012 07:38 PM
I wish the government and everyone else would stop seeing it as a class issue. And what is defined as rich in one location will be different to another in Australia. A whole other issue. However, women need to be able to take on leadership roles. We all
know that gender diverse teams are linked with better performance. And we know that more people working means more taxes collected and more productivity, and so the cycle continues. So to get women in those positions, those women need to be supported. The
result is a better one for our economy, with more people producing, better performance for companies (and therefore our superannuation since that is where our money is invested) and also for the families involved and the nanny who is being employed (some of
which are sure to be immigrants). I don't get why people (and some government ministers) are so short sighted and cannot look to the bigger picture. Is it part of the tall poppy syndrome? Not sure. Baffles me.
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