Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I think one of the things about child care to understand is what happened with the increase in childcare costs over the period during which those opposite were in power. The average fee for a child in full-time long day care increased by almost 80 per cent. The government has a plan for investing in child care some $2.4 billion over the next four years. It includes the establishment of up to 260 additional childcare centres across the country; the childcare tax rebate going from 30 per cent to 50 per cent; universal access to 15 hours of affordable early learning for all children in the year before formal schooling, access that meets the needs of working parents; and also our commitment to act on this in the long term. No-one likes to see the cost of child care going up—this government does not like to see it going up either—but there are ways in which you can handle it. The government has responded in terms of its family support package, which is some $55 billion in the most recent budget; income tax cuts, which flow through from 1 July; as well as the increase in the childcare tax rebate.

I refer to the typical young family of a mother and father with one child at preschool and one at primary school. If you look at the overall flow-through effect for that family, it is some $52 a week. This does not solve all cost of living challenges at all but we believe on this side of the House that it is a responsible course of action to assist families and individuals under financial pressure at this time, including the pressure that occurs as a consequence of childcare cost increases.

I will add one further comment on the affordability of child care, and that is the matter of the input costs which childcare providers are now confronted with, as well as the cost of labour. We have had a gross shortage of qualified workers in this sector for a long period of time, which is why the government has been so keen to additionally invest in this part of the equation as well.

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