Net childcare costs are the net reduction in family budgets resulting from the use of full-time centre-based care.
Costs are net of any benefits designed to reduce the gross childcare fees. Childcare benefits can be received in the form of childcare allowances, tax concessions, fee rebates and increases in other benefit entitlements.
It is calculated by comparing net income of a family that uses childcare and an otherwise identical family where no childcare services are used (for example, if the family can use unpaid informal care).
Net childcare costs are calculated for both couples and lone parents assuming two children aged 2 and 3, both attending a childcare centre full-time. For this indicator, couples include one parent earning 67% of the average wage and the other earning minimum wage. Single parents earn 67% of the average wage.
This indicator is measured as percentage of household disponsable income and average wage.
