From April 1 2023, the Labour Government in Aotearoa New Zealand increased the income thresholds for the Childcare Subsidy making the subsidy available to more families across the country. This was a welcome change, with childcare in Aotearoa ranking among the highest in the OECD and families struggling with the cost of living crisis. Families across the country have been holding out for some financial relief that this change will bring. 

However, from April 1 as parents began the application process it became apparent that accessing the subsidy is over-complicated, confusing, poorly thought out, and simply inaccessible for many wanting to apply. Although the government announced these changes five months ago, there appears to have been no preparation for the influx of applications, meaning that people needing help with their applications are unable to reach MSD or WINZ and ask for help. 

We are calling for changes to be made to make the application process less complex for parents. The main areas parents want to see changes are: 

1. Make the application process an online process. Currently, applicants are having to print out physical copies of the 28-page form, fill it out, get certified copies of multiple documents, and then take them into a WINZ office in person. This is inaccessible to many people (those who don't have a printer, live rurally, work hours, or have children in their car during office opening hours, etc.) Making the application process one that can be done online will mean more families are able to apply for the subsidy. It will also mean parents are able to update their income details as they change more easily. 
2. Ask for yearly income estimates based on the tax year, rather than asking for weekly/fortnightly pay breakdowns. This is confusing and complicated for parents who are not paid a consistent salary. Many parents' pay fluctuates week-to-week for a number of reasons (casual employment, self-employed, shift work, etc). All other parental benefits (like WFF) are paid using yearly income estimates. Making this consistent will take the confusion out of the application process for parents. 
3. Streamline the application process and make it more straightforward. Parents have expressed confusion and frustration at a number of the 28-page application and documents required. Communication between IRD and MSD will mean that agencies already have information about children and incomes, without parents having to jump through hoops. 

Making these basic changes to the Childcare Subsidy will mean that more parents are able to access the financial relief they desperately need and have been counting on. At the moment, the subsidy application is inequitable and leaves many parents unable to access it for a range of reasons. During the Covid-19 pandemic, the government was able to make subsidies available to businesses almost overnight, through an online process, with few questions asked. If they wanted to make it easier for parents to access the Childcare Subsidy they could.