Child care funding proposal supported by Labor, dispute with Government on how to spend money

The Federal Opposition says it will match the Government's $3 billion funding for child care, but has not agreed on how the extra money should be spent.

Labor caucus this morning decided to give the childcare sector more certainty about future funding.

The Federal Government wants to overhaul childcare subsidies paid to parents by introducing one means-tested payment.

Low and middle income families would receive the most support.

The package also includes an activity test that parents and carers must satisfy before they can qualify for any subsidised care.

Many childcare providers fear the activity test will force children from vulnerable families to drop out of early education.

The legislation for the childcare package is currently before a Senate inquiry that is due to report next month.

Labor will not make a decision on the package as a whole until the inquiry hands down its findings.

The Opposition is now investigating possible amendments and different models for funding the sector.

The Government wants the new system to come into effect by the middle of next year.

Source: ABC News

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