The Productivity Commission is by now used to governments ignoring its well-crafted, realistic economic policy advice, but usually the advice is ignored because it’s politically toxic – e.g. it would upset the entire population of Tasmania. Currently, however, governments across Australia are ignoring Commission advice that would push them in the direction of their clear political interests. I’m referring to the Commission’s advice from last year on the impact of new COAG childcare reforms on the cost of childcare and female workforce participation (see Childcare reforms to push up fees by 15pc, says Productivity Commission).

The Gold Coast Bulletin reports this morning (Coast childcare costs to rise $15 a day):

THE cost of childcare centres on the Gold Coast will rise by up to $15 a day, forcing some parents to quit work because it is too expensive to have their children looked after.

From this week fees at centres across the Coast are set to rise by between $2 and $15 a day per child to fund the introduction of new Australian legislation.

The new legislation, which replaces Queensland’s Child Care Act 2002 and Child Care Regulation 2003, will force all childcare staff to be trained to higher standards meaning costs will be passed on.

The sweeping changes have panicked some mothers who fear they will have to give up working.

I expect governments will find ways to relax the requirements to minimise the political impact, which will become more apparent as working couples return to work after the Summer break.