Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Hansard source

It is certainly the first I have received. We had today an announcement from the opposition that when it comes to new policy they will have an inquiry. They will inquire into whether or not they need a new policy. They will go to the next election with a proposition that says they have got the mirror out; they are going to look into it. That is essentially the policy we are looking at today: a policy of looking into the mirror.

When it comes to the question of whether or not it is in fact more expensive for child care under a Labor government, of course that is one of the great myths that the coalition pedals. It is a myth that Labor's reforms have in fact made it more costly. Take, for example, the classic case of a family on an income of $75,000 a year. In 2004 child care would account for some 13 per cent of a weekly budget. By 2011 it was just 7.5 per cent. This is a direct consequence of the Labor government's commitment to quality child care. We raised the childcare rebate from 30 per cent to 50 per cent. We have increased the maximum limit by more than $3,000 per child. We have also allowed parents to receive the payment each fortnight rather than wait all year for the money to arrive. I understand that is part of your suggestions at the moment—that is, we put some sort of tax deduction system in. Of course we know who that advantages; it advantages high-income earners.

It is true that childcare fees are rising and quality does have a price, but the net rise has been no faster than we saw under Prime Minister Howard. Over the last four years— (Time expired)