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| Changes to the Nanny Pilot Programme
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The Nanny Pilot Programme was designed to support families who struggle to access regular childcare services - for example shift workers, or those in regional or remote areas.
However, with reports slamming the service as unaffordable and news that some parents were paying up to $35 per hour for care, the Government has amended the subsidy rate to address these concerns.
But does that now make the Nanny Pilot Programme viable, and is it something that could be applicable to your household?
The basics
With a budget to subsidise the cost of childcare for more than 10,000 children by approximately 4,000 nannies, on paper the Nanny Pilot Programme looks like a great step in the right direction for those working parents who don't meet standard child care hours.
Care is subsidised for up to 50 hours per child per week, with families receiving a percentage of a $10 hourly subsidy rate—this cap being raised from $7 to $10 on 1st June. This should result in a subsidy of between $5.00 and $8.50 per child being paid direct to the services, which is then passed onto families as a fee reduction.
The subsidy is means tested, with families earning up to $60,000 receiving 85 per cent of the cap, which tapers to a 50 per cent subsidy for those earning up to and above $165,000. Those families earning over $250,000 are not eligible for any subsidies.
The programme is planned to run until 30 June 2018 and the programme department selects all service providers. A nanny can care for a maximum of four children under school age and seven children in total. Nannies can be shared with other families, a method that could be the most cost-effective way of approaching the programme, but all families need to be registered with the programme to be eligible for the rebate.
The numbers
Our recent Annual Child Care and Workforce Participation Survey, where 4,380 people shared their views on Australia's child care system, showed that although 7 per cent of respondents use a nanny or au pair service, only 0.92 per cent (or 20 out of 4,380) are currently part of the Nanny Pilot Programme. And a recent article reported that out of 2,800 families registered for the trial, so far only 60 families have engaged nannies.
One of the key complaints is that the service isn't eligible for either the Child Care Rebate or Child Care Benefit, making it completely unaffordable. Another factor contributing to its unaffordability is the rates that services are charging—from $35 per hour for weekday care to up to $90 per hour for weekends.
Being more than many working hourly rates, the costs currently put the service out of reach for most. One respondent from our survey said, "It is ridiculously expensive. The rates are higher than my hourly income!"
Want to be involved?
Being in its early stages, the Government states it is committed to delivering flexibility to Australian families via the Nanny Pilot Programme, and with the increase in subsidy, the government seems open to change. In the recent budget the Government has also dedicated $800,000 towards an evaluation of the programme. Hopefully this might bring about further positive change and make the Nanny Pilot Programme more viable for working families in the future.
Click here for more information on the program.
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