Senate debates

Thursday, 12 August 2021


Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021; Second Reading

10:16 am

Photo of Anne RustonAnne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Hansard source

I thank all senators for the contribution they've made to the debate on the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021. The fact is that our record $10 billion investment in child care since we came into office is 77 per cent higher than it was under the previous, Labor, government. There are over 280,000 more children in child care today, and women's workforce participation reached a record high of 61.8 per cent in March 2021, up from 58.7 per cent when Labor was last in office. This policy will make a difference for many, many Australian families. By removing barriers for second-income earners, especially women who want to return to work or to work an extra day, the Treasury estimates that around 40,000 mums and dads will get to work that extra day. This alone translates into a $1.5 billion boost to our economy each and every year.

Increasing the subsidy for families that have a second or third child aged five years or under means that 250,000 Australian families will be better off by, on average, $2,260 per year. As an example, an average family today that has two children in care and an income of $110,000 a year will be better off by $120 a week. That's $120 a week back in the pockets of hardworking Australian families. Our design of this policy is purposeful. We've targeted our support for families who need it the most: when they have two or more children in care and out-of-pocket costs to their family budget are at their highest. We're also removing the annual cap that is in place for families earning over $190,000, so there is no cap on subsidies. Our childcare system is designed to work for Australian families.

On this side we support families' choice. Our childcare system is fair for those who use it and fair for those who don't. We stand by the principles of our childcare system. Our system provides more support for those on lower incomes. Families earning over $350,000 don't receive any taxpayer funded childcare subsidy. An activity test means you need to be working, studying or training in order to access the subsidy, and an hourly fee cap keeps downward pressure on fees. Around 87.5 per cent of services are charged under the hourly rate cap.

Our policies have kept out-of-pocket costs low, with the out-of-pocket cost for a family almost $1 an hour cheaper, on average, than before we introduced our package in 2018. Our changes are an investment in Australian families and in our economy. Our plan is supporting parents, especially mums, to return to work or work more hours if they choose to. That's why Jennifer Westacott of the Business Council of Australia says:

This is good for mums and dads, good for businesses and good for the economy.

We are proud of our record of delivering for all Australian families, and I commend this bill to the Senate.


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