Wendy Askew (Tasmania, Liberal Party) Share this | Hansard source

I'm pleased to continue my contribution to the Family Assistance Legislation Amendment (Improving Assistance for Vulnerable and Disadvantaged Families) Bill 2020. I mentioned in my earlier contribution that with the childcare relief package around 99 per cent of childcare providers kept their doors open throughout this pandemic. Around one million families received free child care during the coronavirus pandemic under the Australian government's plan to support families and help the early childhood education and care sector.

Like with so many of us here in this place, early in the outbreak of COVID-19, childcare concerns of both parents and providers were one of the most regular concerns raised with my office, and the prompt response by Minister Tehan and our government was warmly welcomed. I would like to place on record my thanks to the Tasmanian childcare providers for sharing their stories and concerns with me during this time and for their dedicated service to our children through those times of uncertainty.

Since 13 July, our transition package, which included a payment of 25 per cent of a provider's pre-COVID revenue, has supported childcare centres around Australia. Centres in Victoria have benefited from additional support in response to the situation there as well. This bill clearly shows that, following the return to the demand-driven childcare subsidy system on 13 July 2020, we are committed to improving access to child care for vulnerable and disadvantaged children and families and to cutting red tape for families and childcare providers. This red tape impacts providers, families and governments to improve access to services for vulnerable children, so we must improve it.

Once amended, the bill will allow the period of time the provider can apply for an additional childcare subsidy determination to be extended from 13 weeks to up to 12 months for children under a long-term child protection order such as those in foster care. This is a welcome change that recognises the support that vulnerable children need over longer times.

Other amendments will enable providers to apply to backdate a family's additional childcare subsidy beyond the current limit of 28 days. This can be up to 13 weeks in exceptional circumstances. This will mean that providers can receive the additional subsidy for a foster child who is at risk of serious abuse or neglect while the foster family confirms its childcare subsidy eligibility. This will ensure these children have immediate and streamlined access to child care.

Childcare providers will also be able to enrol children who are in foster care under the additional childcare subsidy for an initial period of up to 13 weeks. This gives an individual foster family enough time to lodge their childcare subsidy claim and have it assessed by Services Australia. Existing provisions where providers are required to notify Services Australia when a child is no longer considered to be at risk will continue to apply.

When introducing this bill to the House of Representatives, Minister Tehan reaffirmed the government's commitment to improving access to child care for vulnerable and disadvantaged children and families. As I outlined earlier, the changes in this bill will streamline access to the additional childcare subsidy by cutting red tape for families and childcare providers. The changes will also further support vulnerable and disadvantaged families to access quality and affordable early learning and child care by enhancing a childcare provider's ability to provide early access to the additional subsidy to vulnerable and disadvantaged families where appropriate. Notably, the amendments continue to maintain appropriate safeguards to support the integrity of the payment.

This government is providing record funding for child care. We invested $8.6 billion in the 2019-20 financial year, with this budgeted to rise to $9.9 billion in 2022-23. We know how important these early years are and we are committed to the provision of quality affordable child care. The once-in-a-generation reforms we have introduced have delivered a 3.2 per cent reduction in out-of-pocket costs to parents. The new childcare package represents the most significant reforms to the early education and care system in 40 years. This package provides more access and more financial support for those who need it most. This is around one million Australian families. We are making it easier for these families to balance work and parental responsibilities.

Drilling down into the figures, and as highlighted by earlier contributions to this debate, this package means around 72 per cent of families pay no more than $5 per hour in day care centres, with 24 per cent paying no more than $2 per hour. The childcare relief package introduced during the coronavirus pandemic kept 99 per cent of childcare centres open. This initial relief package did its job, and now we are operating within the $708 million transition package. This transition package, as I said earlier, was introduced in July to support the sector and families as they move back to the childcare subsidy. This package has several parts to ensure the recovery of the childcare sector, while also ensuring continuity for the families that need this service. The government will pay approximately $2 billion in childcare subsidy this quarter to eligible families. The subsidy is means-tested to ensure that those who earn the least receive the highest level of subsidy.

In addition to the childcare subsidy, the government will pay childcare services a transition payment of 25 per cent of their fee revenue received during the relevant relief package reference fortnight, and the last two payments scheduled for September will be brought forward to help with the transition and cash flow. This additional transition payment of $708 million replaces JobKeeper for employees of a childcare subsidy approved service and for sole traders operating a childcare service, and it applies important conditions on childcare providers. For the period of the transition, childcare fees will be capped at the level of the reference period and services will need to guarantee employment levels to protect staff who have moved off the JobKeeper payment.

The government will also ease the activity tests until 4 October, to support eligible families whose employment has been impacted as a result of the coronavirus pandemic. These families will receive up to 100 hours of subsidised care per fortnight during this period. This will assist families to return to the level of work, study or training they were undertaking before COVID-19. In addition, the gap in fees will be waived when childcare services are forced to close on public health advice as a result of COVID-19. This has been extended to 31 December.

The Victorian childcare sector will receive an additional $33 million in support. Melbourne's services will receive a higher transition payment of 30 per cent. They may also be eligible for a top-up where the childcare subsidy received is low and they are experiencing greatly reduced attendance. Victorian families will receive an extra 30 days allowable absences up to a total of 72 days. All services subject to stage 3 or higher restrictions can waive gap fees if children are not attending and absences are claimed, allowing enrolments to be maintained and the childcare subsidy to be paid. Outside hours school care services in Victoria will 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. The 25 per cent transition package will be applied to all providers to replace JobKeeper, which was not universally supportive across the entire sector. This package is designed to deliver a more equitable outcome across all early learning services providers.

The support I have outlined here for vulnerable and disadvantaged families is just a small part of what this government has done to ensure Australians can receive financial help during this pandemic. This support also includes: the JobKeeper payment to help businesses and their employees; changes to JobSeeker eligibility and payments; the coronavirus supplement; pandemic leave disaster payments; and additional funding for a number of essential services helping vulnerable Australians during this pandemic, such as those experiencing family and domestic violence, those who need extra support for their mental health and those who are living with disability. There is so much this government has done to support Australians during these incredibly difficult times, especially vulnerable Australians.

In conclusion, this bill demonstrates that the government remain committed to making life easier for childcare providers and vulnerable and disadvantaged families and that we are listening to providers so we can continue to make improvements based on that feedback around how the childcare package is operating. The changes proposed in this bill will reduce the regulatory and administrative burden on families and childcare providers. They will support vulnerable and disadvantaged families to access quality early learning and child care and help parents to access financial assistance. I commend this bill to the Senate.