Australia’s top money expert claims it’s ‘not worth it’ for parents to go back to work if they earn $80,000
- Podcaster claimed $80,000 salary isn’t enough
- Victoria Devine said families would struggle
A finance expert has sparked debate after claiming that an $80,000 salary is not high enough to justify returning to work after having children due to the cost of childcare.
Victoria Devine admitted the salary was a “good income” but explained why it wasn’t enough for those with children on her podcast, “She’s On the Money.”
‘It’s not worth going back to work if you have $80,000.
Ms Devine revealed that a person making $80,000 a year would be taxed around $21,600.
“He has a net annual salary of $68,685 after taxes because he would be paying about $21,600 in taxes.” she said.
He then said that a parent would have to send their child to day care so they could work full time.
Ms Devine claimed that most of her salary would be spent on childcare fees if they had two children.
She calculated that the father would keep a fraction of her earnings as a result.
“If your two kids are in full-time child care and you go to work every week, you’re only making $15,885 a year,” she said.
Finance guru Victoria Devine admitted the salary was a ‘good income’ but explained why it wasn’t enough for a family on her podcast, ‘She’s On the Money’
Social media users were divided over the comments made by Ms Devine.
‘Completely agree. Yes, you lose super, but you also have to weigh whether that kind of money is worth having someone else raise your kids full time.
‘This is a very important factor for me in quitting smoking and setting up a nursery in my home. I can earn money at home with my son and three other paying children.’
‘This is exactly my problem. A gap fee of $458 a week is ridiculous and you still have to pay if they are sick or sent home.
Some argued that it was better to have some money than no money.
‘That’s $15,885 for invoices. What is the problem?’ one wrote.
A second added: ‘You have to take the super into account. The difference in super with interest earned is several hundred thousand at retirement.
‘It’s ridiculous, but a gap in my resume and not having that extra $15,000 is also important. In addition, a good nursery can also have many benefits.’
Others said the fees shouldn’t cost as much because parents should be eligible for a Child Care Subsidy (CCS).
“You are not considering CCS,” wrote one. ‘With CCS, second child care should be virtually free.’
But others said they weren’t getting much support through CCS.
‘We get very little CCS and my husband isn’t even making a large amount. Working parents should get more.
Another said: ‘The more you earn, the less subsidy you get too.’
Childcare rates range from $70 to $190 per day with the average Australian parent paying around $118.36.
Rates are substantially less for parents eligible for the Child Care Subsidy.
The amount a parent can claim depends on their income, and some people can save up to 85 percent on their cost.
Ms Devine claimed that most of her salary would be spent on childcare fees if they had two children (file image)