Senate debates

Thursday, 1 September 2016

Questions without Notice

Child Care

3:00 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Thank you—

Senator Conroy interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

We still have time. The question does not start until 32 seconds past the hour, so Senator Cory Bernardi was certainly in order.

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

My question is to my friend the Minister for Education and Training, Senator Birmingham. Can the minister—

Opposition senators interjecting

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Order! Senator Bernardi, you have the call.

Opposition senators interjecting

Order on my left.

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Can the minister please update the Senate on how the government's Jobs for Families bill will reform the childcare system?

3:01 pm

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

I thank my good friend and colleague Senator Bernardi for his question. I know that all in this chamber will miss Senator Bernardi while he is not with us for some of the later sittings this year—perhaps none so much as Senate Dastyari!

But Senator Bernardi is of course a great champion for the interests of Australian families and, in this instance, his question goes to the heart of support for Australian families and their participation in the workforce. Today, the Australian government, the Turnbull government, reintroduced into the House of Representatives comprehensive reforms to Australia's childcare system—$40 billion worth of investment; $3 billion worth of additional investment in early education and child care—which are designed to introduce an activity test to ensure that taxpayers' support for childcare services is targeted to those who depend upon it for their work and their contribution and effort in the workforce, and that it is targeted as effectively as possible to those earning the least amount of money and those working for the greatest number of hours. We are introducing hourly fee caps in terms of the subsidy provided to put downward pressure on fee growth—something that the Labor Party fails to understand—and reforms that abolish the $7½ thousand cap on the childcare rebate, importantly ensuring that parents in middle- and low-income families no longer reach a cliff in their childcare support but can work right through the 12-month period.

Our reforms are fundamentally fair, carefully targeted and the result of extensive consultation, and have only been held up by the fiscal irresponsibility of those opposite, who refused to support the savings measures required to fund these reforms. We want to make sure that we redirect government support to those working and who need it most, and those opposite should support us to do so.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Bernardi, a supplementary question?

3:03 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Yes, and I thank the minister, but I would ask him if he could please advise the Senate of the benefits that Australian families will gain from this policy?

Opposition senators: Which ones?

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

I am happy indeed to talk about which ones, because one good example of an Australian family like the many low- and middle-income working families who will most benefit from this policy is the example of Sarah and Jasvinder. Sarah and Jasvinder were people who appeared in the Labor Party's policy document that they released on child care during the election campaign—a family working full-time with an income of $100,000 per year, they have two children in care five days a week and pay daily fees of $95 per child.

Labor boasted that Sarah and Jasvinder would be $3,658 better off per year under their policy. But they did not bother to do the sums about our policy. And, under our policy, they will be much better off, to the tune of $6,846—essentially, double the benefit under the coalition's policy than under Labor's policy for the very example that the Labor Party sought to highlight. Sarah and Jasvinder are examples of around one million Australian families who will be better off as a result of our— (Time expired)

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Senator Bernardi, a final supplementary question?

3:04 pm

Photo of Cory BernardiCory Bernardi (SA, Liberal Party) Share this | | Hansard source

Yes, thank you, Mr President. Is the minister aware of any alternative policies that have been offered to the Australian people?

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

I am aware that those opposite presented something they called a policy during the election campaign. Mr Shorten said, in fact, 'No government deserves to govern if they do not have a plan for child care.' But unfortunately the Labor Party only had, essentially, a one- or two-year plan—a bandaid solution that was simply to move the existing cliff up, whereas we want to abolish that cliff. So they wanted to shift so that families would face another cliff in terms of their childcare support. We want to abolish it for low- and middle-income families and ensure that they can receive support every single day and every single month of the year for their childcare fees. We want to make sure that we have a system that keeps a downward pressure on fee increases, while the Labor Party proposed exactly the types of reforms that, when last implemented, saw fees skyrocket through the roof.

So there are alternatives, but they are flawed, failed models from the past, and what I hope we will see is common sense prevail, support for our savings, and support for reforms that help Australian working families who need it most.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Thank you, Minister. Before I call Senator Brandis, could I remind senators that, at the conclusion of taking note of answers to questions today, there will be a ballot for committee memberships.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Attorney-General) Share this | | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.