Microsimulation Policy Modelling (Care Costs)

The Taskforce on Care Costs (TOCC) released a report in 2005 entitled Creating Choice: Employment and the Cost of Care. Its focus was on demonstrating the connection between workforce participation and the cost of care.This was followed by another review in 2006. A key focus of the 2006 TOCC Review was on developing a solution (or financial treatment) to alleviate the cost of care and therefore to increase workforce participation rates of carers. The TOCC developed a working model, proposing a 50%/full rebate of care costs as the appropriate solution.

This project evaluates the proposed working model, limiting itself to the costs of childcare. It investigates whether the proposed changes are expected to have a positive impact on current workforce participation levels for workers with caring responsibilities. It determines the expected quantum of such an impact and investigates how this is likely to be distributed across various segments of Australian families with caring responsibilities. Finally it conducts a cost/benefit analysis to assess the upfront costs of the working model for Government, and the comparative benefits of the expected increase in workforce participation for workers with caring responsibilities (and therefore contributions to the economy in terms of income tax and decreased income support receipt).

Researchers : A/Prof Guyonne Kalb and Dr Wang Sheng Lee

This project started in August 2006 and was finalised by the October 2006.

The findings of this project were reported in a Report for the TOCC and in a Working paper (pdf 206KB)