Senate debates

Wednesday, 26 August 2020

Bills

Family Assistance Legislation Amendment (Improving Assistance for Vulnerable and Disadvantaged Families) Bill 2020; Second Reading

10:14 am

Photo of Sarah HendersonSarah Henderson (Victoria, Liberal Party) Share this | Hansard source

It is also regrettable that Senator Faruqi did not mention that the Family Assistance Legislation Amendment (Improving Assistance for Vulnerable and Disadvantaged Families) Bill 2020 now before the Senate for debate, in adopting the $700 million transition package, is making all employees of childcare centres who are currently working eligible. She did not address the fact that one-third of childcare workers working in Australian childcare centres are not currently eligible for JobKeeper. We have been criticised for that. But now this issue is being remedied, because we're providing a new wave of support, and this is something that the Greens have suddenly forgotten to mention. The fact of the matter is that casuals who have been working for a childcare centre for less than 12 months, visa holders and other people who are not currently eligible for JobKeeper are eligible for this new transition package. As I said, it is regrettable that that very important point has been conveniently overlooked by the Greens in the contribution that we just heard.

The childcare relief package before the Senate will keep 99 per cent of childcare centres open. We know how difficult this has been; this pandemic has been so traumatic for families, has caused so many issues in our community and has put families under such pressure. For those who run childcare centres, when the numbers dropped away dramatically our government took immediate action to keep those centres open by providing free child care. And we're now working to give childcare centres the support they need and, importantly, childcare workers the support they need. Our $708 million transition package will provide 25 per cent of fee revenue—that's 25 per cent of the existing hourly rate cap, whichever is lower, during the relevant reference fortnight, and the last two payments scheduled for September 2020 will be brought forward. Childcare fees will be capped and services need to guarantee employment levels by maintaining the same average number of employees. Activity tests will be relaxed until 4 October 2020 to assist families whose employment has been impacted by COVID-19—again, a further concession to make sure that we're doing everything we can to support families. That's so families impacted by COVID-19 can receive up to 100 hours of subsidised child care per fortnight during this transition period. There is also a very significant gap-fee waiver when services are forced to close on public health advice as a result of COVID-19. That gap-fee waiver has been extended to 31 December.

It's also important to point out that we know how much pressure many Victorian families are under at the moment, with very extreme stage 4 restrictions applicable in Melbourne. Essential workers are struggling to find the child care that they need and so, as a government, we are providing some $33 million in additional support for Melbourne. Melbourne services will receive a higher transition payment of 30 per cent and may also be eligible for a top-up where the childcare subsidy is received. That of course depends on attendances at the childcare centre. Victorian families will get an extra 30 days of allowable absences, to a total of 72 days. All services which are subject to stage 3 or higher restrictions—and stage 3 is applicable to regional Victoria—can waive gap fees if children are not attending. Absences are claimed, allowing enrolments to be maintained and the childcare subsidy to be paid. Outside school hours care services in Victoria will also receive an additional viability support payment of 15 per cent of their revenue if attendances have fallen by 40 per cent. On average, the government expects that services in Melbourne will receive between 80 and 85 per cent of their pre-COVID revenue.

We understand that childcare centres need incredible support at this time. The relief package with JobKeeper was a temporary measure. It did keep the very large majority of childcare services open but, as I mentioned, with one-third of educators not eligible for JobKeeper, educators and services asked for a more equitable arrangement. That's what they asked for, and that's why the bulk of the childcare industry is supportive of these measures.

The $708 million transition payment, which is 25 per cent of the services revenue on top of the $8.9 billion per year childcare subsidy and the many other top-up payments, is replacing what we had in place before in relation to JobKeeper. The transition package will see services receive the majority of their pre-COVID revenue even while their attendance is low. So the support is very much on par with what they were receiving previously, but, very importantly, one-third of childcare workers who were previously not eligible are now being supported.

A condition of receiving the transition payments—and this is a very important point to make—is that there will be an employment guarantee where the childcare service is required to maintain the same average number of employees. These payments going to childcare centres can't be just pocketed by childcare centres; they must be passed on and there must be that employment guarantee. That will, of course, ensure the viability of childcare centres and also make sure that childcare workers are receiving the support that they need.

I commend this bill to the Senate. This is another example of how our government is working so incredibly hard to support families at this time. We acknowledge that, in every sector of the economy, families, small businesses, sole traders, young people, students—so many Australians—are under pressure. As a member of the Morrison government, I am incredibly proud of the support that we are providing—support that represents in excess of $300 billion in payments. Under JobKeeper, for instance, payments are rolling out for the $100 billion JobKeeper program, the $1,500 per fortnight wage subsidy, which, of course, flows through until September. With JobSeeker, we're paying a supplement at a rate of $550 per fortnight. We recognise the extraordinary impacts this is having on mental health and on social isolation. Many people with spouses and children are getting by, but we also recognise that many Australians are living on their own and they are effectively locked in their houses on their own, and that social isolation can lead to some dramatic consequences. That's why our Mental Health and Wellbeing Pandemic Response Plan includes very substantial investment for mental health.

In my own region that I proudly represent—my Senate office is based in Geelong—there's been a very traumatic number of suicides involving young teenagers. We've made a commitment for a special suicide prevention program of in excess of half a million dollars just to support young people and school students, because we recognise that, when you cut anyone off from their friends and their family, stop them playing sport, stop them connecting, it can have very drastic consequences.

We acknowledge at the moment that stage 4 restrictions are causing a huge impact on the Australian economy—an impact that will cost the Australian economy some $10 billion to $12 billion. I've spoken out about my concerns in relation to the restrictions and how they must be justified and they must only be to the extent required to combat this terrible pandemic. Treasury estimates job losses in Victoria of up to 400,000 as a result of what we are enduring at the moment. So, as a member of the Morrison government, led by our magnificent Prime Minister, who is working night and day to get Australians through this, in conjunction with the leadership team, in conjunction with the national cabinet, I say to all Australians: I am incredibly proud of the way that our government is supporting Australians. The measures that have been set out in this bill are evidence of further support for families.

I want to finish off my contribution by reminding anyone listening or reading this speech in the Hansard that help is available 24/7. The National Coronavirus Helpline is 1800020080. Of course, if you are suffering from mental illness or mental health challenges please don't forget Lifeline and Beyond Blue, or 1800 RESPECT if you have concerns about family violence. Right across this economy we are working incredibly hard, including for families, childcare centres and childcare educators. I commend this bill to the Senate.

(Quorum formed)

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