House debates

Thursday, 28 May 2009

Family Assistance Legislation Amendment (Child Care) Bill 2009

Second Reading

12:25 pm

Photo of Maxine McKewMaxine McKew (Bennelong, Australian Labor Party, Parliamentary Secretary for Early Childhood Education and Child Care) Share this | Hansard source

in reply—I thank those members of the House who have contributed to this debate. I particularly thank the member for Blair for his very comprehensive appreciation of everything that the government is doing in this important area of early learning. The Family Assistance Legislation Amendment (Child Care) Bill 2009 continues to strengthen childcare governance. The bill builds on the comprehensive package of childcare initiatives that was passed last year through the Family Assistance Legislation Amendment (Child Care Budget and Other Measures) Act 2008.

Our first step is to rename the rebate as the childcare rebate in recognition that the payment is now made through the Family Assistance Office. We are creating a debt recovery provision so that if a person’s childcare rebate exceeds the entitlement determined at the end of the income year the difference is a recoverable debt.

We are taking further steps to simplify the calculation of the rebate for the income year and we will pay the rebate to an individual in substitution for someone who has died. Measures contained in this bill will also strengthen the compliance framework.

We are enabling the extension of the civil penalty and infringement notice regime through regulations and we are tightening the link between a service and an operator to hold operators liable for meeting the obligations imposed on their service.

We are introducing a power to request information when a childcare service has notified that it is ceasing operations. In particular, this power will introduce a requirement for an operator of an approved childcare service that is ceasing operations to notify the department in the form, manner and way specified by the secretary. Within that notice we intend to include a requirement for a service operator to provide evidence of the written advice of their intention to close and the fact that they have sent it to the families of the children enrolled at that centre. This change will work in concert with the amendments that allow the imposition of civil penalties through regulation. For example, regulations could be put in place so that a civil penalty would apply in a case where an operator failed to provide evidence of written advice of their intention to close to the families of children enrolled at that centre.

Through these measures we will continue to protect the government’s investment in child care. Last year the government delivered on its commitments to child care. We said we would do more. Through this bill we are doing more and we will continue to do more to meet the childcare needs of the Australian community.

I note that this bill is making a number of technical amendments to improve the operation of Australia’s childcare sector, but in the debate I noticed that the member for Indi also made a number of comments regarding ABC Learning. In particular, she raised the issue of problems in relation to one centre at Altona North. I want to put on the record the fact that PPB, the court appointed receiver, wrote to all families involved in the Altona North centre about the receivership process on three occasions—families received letters on three occasions. It is of course regrettable that this centre is closing; however, alternative local care is available and has been offered to all the affected families and children. Nonetheless, I certainly concede that this has been stressful for families, and particularly for employees.

But I would like to take a minute to put this into perspective. Given what the outcome could have been last year, when the vast empire that was ABC Learning went into receivership—an empire that extended to 1,084 centres—and we were faced with the possible loss of tens of thousands of childcare places, for a start, the management by the government and the receivers has been remarkable. Today I note the member for Indi spoke about what parents need. In cleaning up the mess of the ABC corporate collapse, I think the Rudd government has shown the ultimate concern and respect for the children, for the parents and for all of the employees involved. Throughout, we have acted to provide stability and certainty.

As I said in my second reading speech, this bill looks to improve the administration and accessibility of childcare entitlements and the accountability of the childcare service operators. It is clearly a step in learning the lessons of ABC Learning to ensure that this mistake is never repeated. I note as well, though, that the member for Indi—remarkably, really—said that the government was not on top of things. I have to say, it requires spectacular front to make that claim, when you consider that the member for Indi was a member of the previous government and, during the Howard years, the entity that became known as ABC Learning grew unchecked. We saw unchecked commercial growth. When it went into receivership last year we had to clean up the mess. We have done that and we are acting in many other areas. We have very ambitious plans with regard to early learning. I note that the member for Indi made no mention of these things. We are acting on quality early learning. We are acting on ratios. We are making an unprecedented commitment and investment in training. And, most importantly, we have acted on affordability. Today we heard from the member for Blair, who made the point that we acted on our first promise in the budget last year and introduced the 50 per cent rebate—that is, 50 per cent of all out-of-pocket expenses. That has made child care more affordable than it has ever been.

I will finish on one other important point, something we did not promise in the election campaign. In this budget, during what is going to be a very difficult year, we have done the best possible thing for parents right across the country: we aim to introduce a universal system of paid paternity leave, something that the Howard government never managed to do during the long boom years. We have very big ambitions in early learning. I think it is time the opposition got on board.

The Family Assistance Legislation Amendment (Child Care) Bill 2009 fundamentally strengthens governance in child care. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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