EXCERPTS
More than 1000 licensed clubs can fill the childcare shortfall by opening childcare centres on their premises in exchange for tax breaks on poker machine profits, Clubs Australia has told the Productivity Commission.
Clubs Australia executive director Anthony Ball has written to the commission's childcare inquiry, urging it to consider the clubs offer as a "credible solution".
"Not-for-profit clubs are well positioned to deliver affordable access to childcare," Mr Ball wrote. "The industry's extensive community networks, sizeable facilities, geographic footprint and capital expenditure programs ensures that clubs can help fill service gaps where demand is most acute."
But Greens MP John Kaye, a member of Parliament's inquiry into problem gambling, dismissed the idea as "outrageous".
"What an appalling message to send to children, have them holed up during the day in what are essentially gambling dens," said Mr Kaye.
"I have grave difficulties with their sponsorship of children's sport, but this is even more dangerous. This is the brave new world of gambling, indoctrinating children from a young age."
A report commissioned by Clubs NSW estimated a third of 4000 clubs in Australia that pay income tax would diversify into childcare as their "primary purpose" if they could get a tax exemption for providing social services.
The McKell Institute report said clubs should create "a cradle-to-the-grave" engagement with local communities. It gave the example of the Go Bananas play centre built by St Marys Leagues Club that offered before and after-school care for $10 a day.
The clubs wanted the government to loosen rules for getting access to $100 million in ClubGrants, which was funded by poker machine taxes, so they could apply to build childcare centres within existing club buildings.
A NSW Education Department spokesman said childcare premises must meet child health, safety and wellbeing standards, but applications were considered from all providers, "irrespective of their ownership or organisation type".
Meanwhile, the NSW Council of Social Services warned the Baird government a large number of childcare centres in NSW could be forced out of business by a draft Productivity Commission recommendation to remove tax benefits from not-for-profit providers.
NCOSS chief executive Tracy Howe said 700 out of 883 preschools in NSW and a third of long daycare centres were run by not-for-profits.
Removing payroll tax exemptions and a fringe benefit tax exemption would "severely hamper" the ability of these centres to pay staff and continue services.
Ms Howe wrote to the Education Minister Adrian Piccoli, warning the Productivity Commission's draft report had a "more negative impact on children and families in NSW than in other states".
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