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

I thank Senator Edwards for his very important question about workforce participation, and particularly workforce participation that provides the greatest incentive and support for women to enter the workforce. Subject to the passage of savings measures, our government is committed to seeing a $40 billion investment in a better childcare system, a childcare system that will be supported by $3 billion of additional support. Most importantly, our reforms will make sure that childcare subsidy arrangements in future provide the greatest level of support and the greatest hours of access to childcare to the families who are working the hardest, and the greatest value of support, the greatest dollars of support, to families who are earning the least.

It is an incredibly progressive reform to child care, which targets those hardworking Australian families who need the support the most. Our estimates are that almost one million Australian families stand to benefit from the government's proposed childcare changes. On average, working families earning between $65,000 and $170,000 will be around $1,500 a year better off. This is about providing the support to help people to get into the workforce, to return to work, to increase their hours of work—especially mothers who may have taken time off for childbirth and to look after children in their early years. We are simplifying the system and, importantly, we are removing the childcare rebate cap that currently imposes a limit on the amount of work that many families choose to engage in. So, for the bulk of families under our reforms, no longer will the $7,500 cap be in place. They will be able to work as long and as hard as they choose to.