Telling it like it is:
New report on work and care costs shows Government the real picture
11 August, 2006
The
Taskforce on Care Costs (TOCC) has met with Government, Business and
Non-government agencies this week to discuss the findings of their
latest review of work and the cost of care. The research shows that
Australia is in the grip of a work/cost of care crisis and without
strong leadership this situation will not improve.
This research, to be released today, also clearly demonstrates that:
1.
In 2006 nearly 79% of workers with caring responsibilities say that
affordability of care influenced their current working arrangements, up
12% from 67% in 2004. “Whether you have children, are looking after an
elderly parent or someone with a disability, in 2006 the cost of care
is having a bigger impact on working arrangements than in 2004. This
is because between 2004 and 2006 care costs rose by 10%, double the CPI
rise,” says Juliet Bourke, Chair of the Taskforce on Care Costs.
2. There’s a clear work/cost of care dynamic:
The high cost of care continues to put workforce participation rates of
carers at risk. One in four workers with caring responsibilities is at
risk of leaving the workforce – the same percentage as in 2004 - and
the affordability of care influenced the departure of two-thirds (64%)
of carers from the labour force. “Essentially, when workers with caring
responsibilities do the maths, 25% say they can’t really afford to
work,” says Bourke.
3. The situation is getting worse, not better:
Over the last two years the cost of care crisis has worsened: care
costs are spiralling upwards and over a third of workers with caring
responsibilities (37%) now feel that the cost of care is too high
relative to their income (up from 31% in 2004). “Without intervention,
it’s just a matter of time before we see the increasing level of pain
workers feel about their care costs in 2006 putting at risk even more
departures from the labour force,” says Bourke. “It’s a risk we can’t afford to ignore”.
4. We can increase levels of skilled labour:
In 2006 more than half of part-time workers with caring
responsibilities would increase their hours of work if care was more
affordable. “We keep hearing that Australia is facing labour shortages
– well here is part of the answer. 50% of part-time workers want to
increase their hours of work. If we can help workers with caring
responsibilities to get the work/cost of care mix right it’s a win/win
for employees and business,” says Bourke.
5. We need to introduce innovative reforms to stay ahead of our global competitors and stem the brain drain: Australia’s
global competitors are introducing innovative reforms to assist workers
with a broad range of caring responsibilities. Australia has taken
some steps to address care costs since 2005, principally via the
Childcare Tax Rebate, but we need to be broader in scope if we are to
stay up with, and move ahead of, the pack.
The
research clearly shows that this situation is getting worse not better
and can no longer be ignored. According to Jones Lang LaSalle’s
Australian CEO, Christine Bartlett, the war for talent in Australia has
intensified due to slowing population growth, thirty year record lows
in unemployment and a brain drain of talent to overseas markets. “As a
result, Australian business cannot afford to overlook any potential
pool of resources, including employees juggling both career and caring
roles. It is vital that we find ways to support those with caring
responsibilities who want to work so that they can afford to be
effective contributors within the workforce,” says Ms Bartlett.
“It’s
great that finally an organisation such as TOCC is looking at this
problem. Carers Australia stands behind them and urges business, the
community and especially Government to do the same,” says Joan Hughes,
CEO of Carers Australia.
“We hope we can work
with Government over the next three months to find sustainable
solutions to the work/cost of care dilemma. We will release our final
report in October which will look at a range of solutions to the
work/cost of care crisis,” adds Juliet Bourke.
About the Taskforce:
The
Taskforce on Care Costs is supported by a high profile group of
businesses that includes ANZ, the ASX, Freehills, Jones Lang La Salle,
McDonald’s Australia, Qantas, Telstra, Toyota, and non-government
organisations. The aim of TOCC is to investigate the financial cost of
care and how it impacts workforce participation, and to promote reforms
within a policy framework of financial sustainability, equity and
choice.
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