Excerpts
Angus Taylor’s Liberal party is considering vouchers for nannies and grandparents as part of an overhaul of childcare in Australia – a policy experts warn could threaten equity and care standards – as the Coalition sets up a clear contest with Labor before the next election.
Matt O’Sullivan, the shadow minister for “choice in childcare and early learning”, has opened the door to government-funded vouchers for nannies, au pairs or grandparents, while the party also considers a broader family tax policy that could look at income splitting, tax and superannuation incentives for families.
The measures, yet to be fully developed or costed, would bring a significant policy fight against Labor’s plans to introduce a new universal childcare model, a policy Anthony Albanese wants to be his legacy.
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Experts and advocates have already raised concerns over the equity of a voucher system and the likelihood of rorting.
Georgie Dent, the chief executive at lobby group The Parenthood, said vouchers would raise prices, while expanding less regulated care for nannies and grandparents could risk lowering care standards.
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Where is this policy coming from?
The policy ideas are similar to tax incentives by Hungary’s rightwing government, which legislated income apportionment and lifetime tax benefits for mothers, to incentivise families having children. Women under 40 with at least two dependent children and all other women who have had three children are exempt from personal income tax.
One Liberal said considering the policies would not be part of a “rightwing” agenda, pointing to income splitting in France that benefits families with more children.
The ideas also follow One Nation’s policy for income splitting, announced in January 2025, allowing couples with children to file joint tax returns, lowering their overall tax. The policy states it would “encourage parents to look after their own children” and “encourage home schooling”.
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