THE childcare affordability issue is now a national economic priority.
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The federal government has moved to address this issue by using economic instruments to influence the market and make these services more affordable.
Economic instruments, such as implementing a benchmark price, effectively cap the rate that a centre can charge.
As recommended by the productivity commission, going forward, federal government rebates will be based on a daily rate no higher than the benchmark price of $110 per day.
The City of Greater Bendigo proposed daily rate increase to $118 per day is above the federal government’s benchmark price.
As a result, this means the CoGB is proposing to operate outside the federal government's economic framework.
Local market research of daily rates shows that the median daily rate for non-CoGB services is $91.50 per day and only one other provider in the municipality is charging a daily rate of $109 per day that is in line with CoGB services.
This, coupled with the proposed CoGB daily rate increase, demonstrates that the city is not in line with and is, in fact, outside the scope of both market and federal government expectations.
As a government entity, it is imperative the City of Greater Bendigo operates within this economic framework and not effectively against it by charging above the federal government benchmark price.
The CoGB is called upon to reconsider the proposed daily rate increase and the full economic implications of operating outside the federal government's framework.
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