Australia encourages women to work, spending $1.3 billion on childcare

Australia’s conservative government will increase childcare subsidies, officials said on Sunday, in a pre-budget announcement that pledges A$1.7 billion ($1.31 billion) to boost female participation in the workplace.

The promised spending comes ahead of a Federal election expected in the next 12 months and follows polls showing Prime Minister Scott Morrison’s approval ratings have sunk, amid growing anger over allegations of sexual abuse, discrimination against women and misconduct in parliament.

The spending targets families with more than one child in daycare, boosting subsidies for those with two or more children aged up to five years-old to a maximum 95% subsidy for their second and subsequent children.

“Today’s measures… are targeted, and they are an investment in making our economy stronger and boosting female working participation,” Treasurer Josh Frydenberg told reporters in Canberra.

Parents who “want to work an extra couple of days. Right now, they have all of that additional income from their wage eaten up in additional childcare cost. This will remove that disincentive,” he said.