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

I thank Senator Gichuhi for her question about a very important reform that the Turnbull government delivered at the start of July, a reform that alongside tax relief and jobs growth policies is delivering support for Australian families and particularly for hardworking Australian families. Our new childcare package, introduced on 2 July, is providing benefits to nearly one million Australian families. It's the result of a $2.5 billion additional investment. Indeed, the typical Australian family, based on early analysis, will be better off by around $1,300 per child, per annum. Put than on top of the tax relief the Turnbull government is providing, the fact we are driving down energy costs and the fact we have driven up full-time jobs and it is demonstration of the fact that our policies for a stronger economy are delivering for Australian families and households.

Our reforms have been welcomed by many and I do note the Australian Childcare Alliance has said that a good proportion of families are better off from an affordability perspective, which is an indisputable, fantastic outcome. And they are better off because we abolished the annual childcare rebate cap of around $7,600 to ensure especially low- and middle-income families aren't limited by the annual cap on their child care and that they are able to, with confidence, plan to work the extra shift, work the extra day, knowing they won't run out of support for paying their childcare bills part way through the financial year. Around 85 per cent of families using child care will feel the benefits of the reforms. Many more will feel the benefits of support from the increased subsidy from around 72 per cent to 85 per cent for more than 370,000 low-income families, all of it backed by a strong safety net giving more support to the hardest working families.