THE federal government's Productivity Commission released a draft report last weekon childcare and early learning which paved the way for nannies to attract subsidies for the first time.
This follows promises by Prime Minister Tony Abbott prior to last year's federal election to investigate taxpayer-funded nannies if the Coalition won office.
The commission's Presiding Commissioner Wendy Craik said the recommendations sought to make childcare "more affordable, flexible and accessible".
"Furthermore, they will provide a framework for a more financially sustainable childcare system for taxpayers into the future," Dr Craik said.
She said the commission had found the current system "did not meet the needs of all families", while the costs of supporting the childcare system were "increasing at an unsustainable rate for taxpayers".
The report proposed three key areas of funding: mainstream childcare; children with disabilities and additional needs and preschool.
A key recommendation was replacing existing multiple childcare subsidies with a single subsidy paid directly to the parents' provider. The subsidy would be means- and activity-tested.
It was also recommended eligible families receive a minimum subsidy of 30 per cent of their reasonable childcare fees.
"Means-testing the childcare rebate will mean that more families on very low incomes will pay less for their childcare than they do now," Dr Craik said.
"We expect low-income families would see 90 per cent of reasonable childcare fees paid by the government."
The National Quality Framework would be extended to include other subsidised services.
The commission said the changes could result in up to 47,000 more full-time employees entering the workforce.
Owner of shire-based nanny placement service Koala Nannies, Linda Melgaard, welcomed any moves that made it more affordable for children to be cared for in the home, especially before the age of three.
"I think it is a fantastic thing if the government gets it up," she said.
"It is much better for children to be looked after in their own homes. They get one-on-one care, they are nurtured and they get kept away from germs."
She said nannies also suited those who worked long days or parents who needed before or after-school care.
"[Nannies] can bring them home and get their homework done and get the bath done and start dinner," she said.
The commission will seek feedback on the draft report before it is finalised at the end of October.
Help stepped in when mum treated for cancer
SUSAN Wainwright, of Gymea Bay, (pictured above) welcomed any moves to subsidise nannies.
Mrs Wainwright has employed a nanny for three years to help look after her two children.
She also provides much-needed respite care for Tiia, who has special needs.
A chromosomal problem means Tiia does not speak, still wears nappies and only began walking last year.
‘‘The nanny comes from 8am to 4pm one day a week. She helps with school pick-up and drop-off,’’ she said.
‘‘She takes [Tiia] to the park, changes her nappies and cooks lunches and dinners.’’
When Mrs Wainwright was diagnosed with breast cancer last year, the nanny stepped in to help while she underwent surgery, 13 rounds of chemotherapy and six weeks of radiation treatment.
‘‘She was here for me,’’ Mrs Wainwright said. ‘‘She knew my house, she knew my children.’’
Have you employed a nanny? Click on the comment link below to share your experience.