Libby Coker (Corangamite, Australian Labor Party) Share this | Hansard source

[by video link] I rise to speak on the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021. This bill, if passed, will enact the government's anaemic solution to our childcare affordability crisis. It must be said: it's not a solution, and it will not be enacted until July next year, after the election. Schedule 1 of this bill would abolish the national subsidy cap. Schedule 2 would introduce new rates to somewhat improve current payments, but this is a second-rate plan. Let me be clear: the Morrison government has been dragged, kicking and screaming, to even acknowledge there is a crisis in the childcare sector. When it comes to the escalating costs of child care being imposed on families, and in particular on women wanting to return to work, the Morrison government has only introduced change because Labor has already stepped up, acknowledged the crisis and announced a childcare policy that better supports families. It makes child care very affordable and empowers women and men to get back into the workforce without it costing an arm and a leg. In contrast, this bill will do little to unlock the full potential of the Australian economy and the women and mothers who want to be part of it. Sadly, under this government, childcare costs will remain a barrier to our nation's economic productivity and will continue to stop women from getting back into the workforce.

The rising costs of child care in my electorate are just one example of this government's failure to support young families. In the 12 months to March, my electorate saw childcare costs rise substantially. The increases ranged from 4½ per cent to 21½ per cent. A 21.5 per cent yearly increase would mean the cost of child care would double every 3½ years. It is not affordable or sustainable and it means many parents are forced to work less. So, instead of working full time, a parent, generally the mother, will work only three days or not at all. The consequences of this are significant for our economy, for our productivity and for the health and wellbeing of families, women and children. Children lose out on their development when their entire education is set back at the first formal step, and the economy loses out because the pool of workers is reduced, driving down incomes and consumption.

And women lose out: they bank less superannuation and they're more vulnerable to homelessness and insecurity in their later years. They can also lose confidence with their skills and connections to their own networks. This is the exact opposite of what we want for women. I have been through this myself and I understand just how frustrating it is. It's not good enough and it needs to change. Under Labor's plan, announced by the Leader of the Opposition some 10 months ago, more children will be able to attend child care, more women will choose to undertake more work and, importantly, 97 per cent of all families will be better off. No family will be worse off. This will be good news for my electorate, because when I visit childcare centres and speak to young families in Corangamite they tell me that the cost of child care is exorbitant, limiting and that it impacts unfairly on women. I recently spoke to a Grovedale mum, Pawandeep Gill. She wants her young daughter to experience the benefits of an early childhood education, but the childcare costs that come with working another day a week greatly outweigh what she earns as an aged-care worker.

This is not what we want for Pawandeep, or for all women. The Morrison government's childcare policy undervalues women. It fails to support them and it undermines their opportunities. Unlike those opposite, Labor wants women to achieve their potential. Pawandeep should be allowed to choose and families in Corangamite and across Australia should be allowed to choose when they work. But of course, not only does the Prime Minister not much care for the people of my electorate in Corangamite he doesn't much care for people outside New South Wales.

Just a week ago, families who are locked down in Victoria and South Australia were paying for child care they could not access. Why? Because the Morrison government failed to allow childcare providers to waive gap fees. In contrast, when it comes to New South Wales, the Prime Minister has given providers the green light to waive these fees. While I, and Labor, welcome these concessions and wish New South Wales and everyone in New South Wales all the best in their endeavours to defeat this virus, we will continue to call on the Morrison government to waive lockdown gap fees in other states, including in Victoria. But I'm not holding my breath; the Prime Minister is becoming increasingly the Prime Minister for New South Wales.

During this time of pandemic we must put aside such disappointments and be constructive. We can fix child care, the problem with affordability and get families back to work if they wish to. Labor has the plan. Labor has announced that an Albanese government will introduce the working family childcare boost for childcare fees and put more money back into the pockets of working families straightaway. Labor will scrap the $10,560 child care subsidy cap, which often sees women losing money for an extra day's work. It will fix the maximum child care subsidy rate to 90 per cent, increase child care subsidy rates and taper them for every family earning less than half a million dollars a year. This means that 97 per cent of all families will save between $600 and $2,900 a year.

Under Labor many primary carers across my electorate will choose to work more and the local economy will benefit by tens of millions of dollars every year as a result. And, as KPMG points out, increased investment in early education and child care will boost our gross domestic product by between $4 billion and $11 billion through increased workforce participation. In contrast, the Morrison government's broken childcare subsidy system has failed to keep a lid on costs and has failed to support working parents—particularly women—to work full-time or to increase their hours.

This latest bill is limited in its response to the crisis in childcare affordability. And, as I stated earlier, it will not be enacted until July 2022—after the next election. This lag is concerning. It means the struggle for young families needing child care will continue. But there is opportunity—opportunity to embrace Labor's childcare policy because the bottom line is that families will be better off. I must say that we must also do better for our early-years educators. This government must do more to support them and value them.

In Corangamite, there are economists calling for Labor's reform. Women and families in Corangamite are calling for this reform. Families should be able to afford child care for their children, and mothers and fathers should be given the opportunities they deserve to strive and reach their potential. So, while Labor will not stand in the way of this bill, I urge every young family to embrace Labor's childcare plan at the next election, because families will be better off, our economy will be better off and young families will get the opportunities they deserve.

See this speech in context