Australia's economy is being quietly propped up by an army of unsung heroes: the nation's grandparents. New analysis reveals the staggering economic value of the unpaid childcare they provide, a contribution that runs into the tens of billions of dollars each year yet receives little formal acknowledgment.
The Multi-Billion Dollar Grandparent Economy
According to workplace expert Professor Gary Martin, CEO of the Australian Institute of Management WA, grandparents across the country contribute an eye-watering more than $63 billion annually in free childcare. This figure is not plucked from thin air; it is calculated by applying the commercial cost of formal childcare to the millions of hours grandparents spend minding their grandchildren.
This massive input allows parents, particularly mothers, to re-enter the workforce or increase their working hours. In doing so, grandparents directly boost household incomes, increase consumer spending, and enhance government tax revenues. Their role is a critical, yet often invisible, pillar supporting national productivity and economic growth.
A System Under Strain and Relying on Family
The reliance on grandparent care has intensified due to several key pressures facing modern Australian families. The skyrocketing cost of living makes formal daycare a significant financial burden for many. Simultaneously, there is a well-documented shortage of affordable, accessible childcare places in many communities.
For countless families, turning to grandparents isn't just a preference; it's an economic necessity. This informal care network fills the gaps left by the formal system, enabling parents to work without the entire salary being consumed by childcare fees. Professor Martin argues that this makes grandparents indispensable to the current functioning of the Australian economy.
Calls for Formal Recognition and Support
Despite their colossal contribution, grandparents operate in a policy vacuum. Professor Martin is a leading voice calling for this to change. He advocates for formal recognition of grandparents' economic role through tangible measures. These could include financial allowances, tax concessions, or superannuation top-ups that acknowledge their labour.
Such recognition would not only be a matter of fairness but also a practical investment. Supporting grandparents helps sustain the vital care they provide. Without it, there is a risk that this voluntary workforce may dwindle due to financial pressure or burnout, placing even greater strain on parents and the formal childcare sector.
The conversation highlights a broader issue: the national accounting system fails to capture the immense value of unpaid work. By quantifying the grandparent contribution at over $63 billion, experts like Professor Martin hope to shift the narrative and push for policies that reflect the true engines of our economic wellbeing.
