Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

I thank Senator Bushby for his question. I know Senator Bushby and, indeed, all members opposite and over here are well aware that many Australian families face real pressures in their childcare costs. On this side of the chamber we also have answers to how we are going to address those childcare costs, unlike those opposite. On this side of the chamber we recognise that already this year thousands of Australian families have hit a financial cliff in relation to their childcare rebate. The $7½ thousand rebate they received has simply run out and between now and the end of the financial year they face a very difficult choice. They choose either to work fewer hours and fewer days or to pay the full cost of their child care, often meaning they go to work for no particular real or meaningful benefit. We appreciate that, which is why the coalition is determined to abolish the childcare rebate cap that exists for all families earning less than $185,000. Ours is a meaningful change that will make a real difference to low- and middle-income Australian families, allowing them to choose the hours they work and the days they work without the fear of falling off the childcare cliff. We recognise this will support the 94,000 families who are estimated this year to face this childcare cliff, but it will also support tens of thousands more families who will be empowered to make a choice that better suits their financial circumstances.

Modelling suggests that around 230,000 Australian families will choose to work or to work more as a result of our childcare reforms—reforms that will allow them to do what suits their families, to pursue their careers, to make the choice to earn more money and to grow their own personal prosperity. All of this is supported, because we will eliminate this cap and better direct subsidies to support those on the lowest incomes so that they get more support for their childcare bills than ever before. These will be real reforms that will make a real difference for hard-working families. (Time expired)