Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
2:44 pm
My question is to the Assistant Minister for Education. Before the election, the government promised to help families with cost-of-living pressures. The minister's own department has confirmed that, if the government get their way, half a million low- and middle-income Australian families will have hundreds of millions of dollars in childcare benefits cut from 1 July this year. No matter what deal the government cobbles together in the next few days, isn't it true that Australians will be worse off because of this government's cuts?
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
2:52 pm
I cannot believe that the shadow minister for education is asking me this question today, because the measures we have taken, regarding making payments to families sustainable, are in part measures that were introduced by the Labor Party. Although the shadow minister in the House walked away from her responsibilities, Labor in the Senate recognised that yes, half of this bill belonged to them.
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
There is only one bill. It is the childcare benefit cuts.
Mrs Bronwyn Bishop Speaker
The member has asked her question and will desist.
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
Remember—$106 million of childcare rebate, a payment to families, frozen for six years by the Labor Party—
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
You're cutting $230 billion.
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
but not enacted in legislation, so that when we came into government—
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
You are cutting $230 million.
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
In the fig leaf of economic credibility that the member for Lilley was trying to cover himself with so his last budget did not look quite as awful as it actually was, these savings were announced but never legislated. So we did that. The Labor Party is also walking away from its responsibilities to children and families. We initiated a Productivity Commission inquiry, which is due to report in July in draft form—
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
Mrs Bronwyn Bishop Speaker
This answer is relevant. If the member is proposing to take a point of order on relevance, there is no point of order.
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
Madam Speaker, I was pointing out that this is about the cuts to the childcare benefit that this minister has before this parliament right now.
Mrs Bronwyn Bishop Speaker
There is no point of order. Resume your seat.
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
There are no cuts. There is a pausing of the threshold for just three years. The amount of childcare benefit will continue to be indexed on 1 July. The dollar amount of payment will continue to increase.
Kate Ellis Adelaide, Australian Labor Party, Shadow Minister for Education
That is not what this says.
Mrs Bronwyn Bishop Speaker
If the member for Adelaide wants an early mark, I can oblige.
The member for Adelaide then left the chamber.
Sussan Ley Farrer, Liberal Party, Assistant Minister for Education
There is a pause in the threshold for three years. Why are we doing that? Why are we forced to do that? As I said, it does give us no pleasure. We are forced do that because of the unsustainable budget position we inherited from the Labor Party.
Before the member for Adelaide interrupted, I was pointing out that the Productivity Commission review that points the way to a better future, to a more sustainable future for families, which brings down its draft report next month, was not supported by Labor, was never endorsed by Labor. Labor took no interest in finding policy solutions for the future. In fact, under Labor childcare costs went up 53 per cent. You might say that there are subsidies to assist—and yes, there are—but in the last four years of Labor childcare out-of-pocket costs went up 40 per cent, so families were paying 40 per cent more in the last four years of the Labor government. It is a shameful legacy that we have inherited—one we are managing, fixing and sorting out.