Justine Elliot (Richmond, Australian Labor Party) Share this | Hansard source

I rise to speak on the Families, Community Services and Indigenous Affairs Legislation Amendment (Child Care and Other 2007 Budget Measures) Bill 2007. I support the amendment moved by the member for Jagajaga—namely, that this House notes that:

(1)

child care out of pocket costs are increasing five times faster than average prices for all goods and services;

(2)

for the past four years, child care out of pocket costs have increased by more than 12 per cent each year;

(3)

on average families will receive $813 from the changes to the child care tax rebate, not $8000 as the government claimed;

(4)

many parents continue to experience difficulties accessing appropriate child care for their children;

(5)

high quality child care must be assured by a rigorous accreditation process focused on quality improvement;

(6)

despite the international consensus on the benefits of early childhood education, Australia ranks last in the OECD on the percentage of GDP spent on pre-primary education; and

(7)

there are currently 100,000 four year olds in Australia that do not attend preschool.

This amendment really sums up the difficulties that so many parents face in both the accessing and the affordability of child care. The bill contains some changes that the opposition and the community have been calling for over many years. The sad fact is that the Howard government has not taken child care seriously over the past 11 years; it has not been seen as a priority. Indeed it seems very convenient, some would say cynical, that a few months before an election we are seeing the Howard government finally willing to take some action and act on the concerns of thousands and thousands of families who are struggling with the rising cost of, and decreased accessibility to, child care. Every parent who has had experience of placing their children in child care can talk about the difficulties of navigating the current system of rebates and subsidies. The system is very confusing and, for the most part, very time consuming. As this situation is the case for many parents, Labor supports the bill. Any bill that gives even a fraction of help to working Australian families will always be supported by us. Even if it is only bandaid assistance provisions motivated by an election cycle, no matter how small the improvement may be, the fact that it will benefit families is indeed a good thing.

Essentially, the bill gives effect to three childcare measures. Firstly, there is to be a one-off increase of 10 per cent in the childcare benefit, without any other further indexation in 2007. This is indicative of this government’s preferred way of governing, which is one of payment rather than sustained relief from the rapidly rising costs of child care. This 10 per cent, one-off payment is supported by us. But it is worth noting, and perhaps it is worth the government paying attention, that out-of-pocket childcare costs have been rising at the rate of over 12 per cent for the past four years. This is a staggering four times the rate of inflation and it is rising five times faster than the average cost of all other goods and services. It is indeed a rapid increase.

It is obvious that Australian families need sustained support to help with out-of-pocket childcare costs, and that is exactly what federal Labor is committed to providing. From this side of the chamber the message we are sending to the government is very clear: what Australian families need is an ongoing commitment to help them deal with accessing more affordable child care. Certainly in my electorate of Richmond many families raise the issue of affordability of child care. For so many families it is just not feasible to use child care at all. This places great stress upon their families. Also, it often places great stress upon grandparents whom I speak to. They tell me that of course they love their grandchildren and want to spend time with them, but a lot of childcare needs have to be borne by them because the parents have to work and simply cannot afford child care. So affordability does place great stress upon families. As I say, it is an issue that many locals, particularly many retired people and grandparents, do raise with me. We need the government to look at the genuine concerns of Australian families with regard to child care rather than simply looking at the next election. The government needs to be properly analysing the needs of Australian families.

The second aspect of this legislation deals with the childcare tax rebate. Despite its name suggesting that it would be a good thing for families, any financial advantages are instead wiped away by the sheer complexity and delay experienced by families attempting to access it. This truly has been a nightmare for families who are struggling from week to week. Accessing the rebate has been a total debacle, as we have heard many speakers say this morning, particularly for families who are struggling from week to week and who are waiting such a long time to access that rebate when they need the money a lot sooner. Currently, the childcare tax rebate is delivered as a tax offset. This legislation will change that arrangement and convert the rebate to a direct payment to families, eliminating the costly delays in the current system.

The legislation deals with families’ long documented frustration with the current system, but it is legislation that is long overdue. Many families have suffered in the previous years while waiting to access that rebate. Again, it is motivated by the government looking at the calendar, realising an election is imminent and then remembering that it is has yet to deliver on its 2004 election promise in this area. Let us just touch on what that promise was. In 2004, the government stated clearly in its childcare policy document that ‘legislation will need to be passed to enable families to receive payment of the 30 per cent childcare rebate from 7 July 2005’. Unsurprisingly, this legislation was never passed at that stage and Australian families were forced to wait until July 2006 to receive rebates for the 2004-05 year. That was certainly a very long time to wait for money that they desperately needed.

We in the Labor Party have been talking about child care for 11 years, a very important issue of vital concern to Australian families, while the government has simply been paying lip service. In fact, processing rebates faster is a common theme from the Labor Party, with the Leader of the Opposition Leader saying in December last year that ‘working families would be able to claim childcare rebates faster under a federal Labor government’. He said that Labor would work with the childcare industry to find ways to give families the rebate much faster. I am pleased to see that the government has finally listened to the opposition and has finally acted on this. This legislation should have been brought in years ago and this problem rectified. But, unfortunately, what happened is what we have come to expect: this government had to be dragged and kicked into making sure that changes which really are vital to Australian families are made.

The final aspect of this bill deals with the healthcare card for full-time students aged between 16 and 25 who are ex-carer allowance recipients. It will extend the healthcare card availability to this group, while they remain full-time students, until the age of 25. It will provide extra support for students with a disability or medical condition and will help reduce the associated costs. At present, access to a healthcare card is limited to those who are eligible through low-income provisions or who receive some other Centrelink payment—such as the disability pension. This change will affect 25,000 full-time students between the ages of 16 and 25 and Labor welcomes and supports it. Continuing with further education, or in some cases even finishing years 11 and 12 at high school, can place a large financial burden on students. This is especially the case when one considers the increases in HECS fees, with a large proportion of students now looking at full fee paying courses, and a general underinvestment in education by this government over the past 11 years.

This is a belated bill—belated by 11 years of government inaction and belated by a government that believes that child care has nothing to do with them. Just as we often hear from this government that dental health and education have nothing to do with them, they often wipe their hands of these very important issues, and working families feel growing frustration in this area. In contrast, we in the Labor Party look to investment in our nation’s infrastructure and investment in our people. We believe in providing support for families from when their children are in child care and early education, right through to tertiary education or skills training. We believe it is good for families, good for the community and good for our country’s sustained economic growth. The Labor Party is listening to Australian families, hearing their concerns and acting on them.

This legislation contains some rather serious holes. The reality is, of course, this one-off payment will quickly be absorbed by increased costs, which, as I stated earlier, are rising more quickly than the cost of any other goods or services. The changes in accessing the tax rebate are a step in the right direction, but two years too late.

The healthcare card changes will benefit thousands of Australians who have been waiting a long time for attention from this government. In my electorate of Richmond, families have been struggling with the increased costs of child care, which is hardly surprising when we look at the fact that the average fee for child care in New South Wales is $247 per week—a staggering amount. The simple fact is that because of these exorbitant costs, families are having their options limited, especially with the rising cost of living.

For many families right across the country, particularly in Richmond, child care is not a viable option. It is something they are not able to access. This is the situation whether parents need child care to continue working on a full- or part-time basis or to retrain or attend further education. The cost of child care is becoming a major determining factor in how Australian parents bring up their families and in how they survive from day to day. We can and must do better in this vital area.

Another key concern regarding this legislation is that it fails in its entirety to address the accessibility and quality of child care—an area about which the federal government has continually been in denial, despite Australian families crying out for recognition of the problems they face. It is simply staggering that the federal Treasury stated: 

... contrary to popular perceptions, there is not an emerging crisis in the sector; supply is generally keeping pace with demand and child care has remained affordable.

I implore the  government to speak to thousands of Australian families and hear firsthand about their experiences of childcare accessibility and affordability. I implore the government to ask Australian families how many would agree with that analysis provided by the Treasury. I am sure Australian families, certainly those from Richmond, would give a very different opinion. I think the government would be surprised at how widespread and ingrained problems are in the current childcare system. We on this side of the chamber, however, are not surprised because we hear about those concerns every day.

As I have said, the Labor Party takes a different approach to child care and early childhood education. We see it as an investment in the future. The policies we have already announced in this area reflect this commitment. The Labor Party has announced a $200 million commitment for 260 new childcare centres on school sites in areas identified as those with real need. It is a commitment to deal practically with the problems Australian families face. It is disappointing, to say the least, that the government has failed to match this commitment—one that would make a real difference in the day-to-day lives of our children and families. It is also disappointing that the government continues to regard child care and early childhood education as two entirely separate issues. There is no doubt that these areas are linked and should go hand in hand when developing policy. It is a view backed up by not only research but also parents throughout the nation.

Labor is looking to our children’s future. Around 100,000 four-year-olds totally miss out on early childhood education—a huge number. Australia is ranked last in the OECD on investment in early childhood education, spending just 0.1 per cent of GDP on preschool education. This is simply not good enough. It is as simple and straightforward as this: if you invest in early childhood education when children are young, the investment is repaid many times over once they move through the education system.

As we know, this country is currently experiencing a massive skills shortage, which did not just suddenly occur or occur in a vacuum. It is attributable to this government’s underinvestment in education, which starts with their underinvestment in early childhood education and continues right through all levels of education. Under a Rudd Labor government, funding will be available for all four-year-olds to receive 15 hours a week of play based learning, taught by a qualified teacher, for a minimum of 40 weeks per year. This right to early education will be enshrined in new Commonwealth legislation. It will be a $450 million commitment per year to help our kids get a head start on pre-literacy and pre-numeracy skills which are crucial to their development. The size of Labor’s commitment means that there will be no additional costs to parents who already struggle with the increased living costs such as high petrol prices and increased health costs. Of course, they are experiencing lower real wages due to the Howard  government’s unfair and extreme industrial relations changes. 

In contrast to all this, federal Labor is committed to an education revolution—some of which I have already outlined. We will also expand the number of university places to train early childhood teachers and waive all fees for TAFE courses for eligible childcare courses. These initiatives will attract many more people into what is a growing industry, and therefore benefit the entire community.

In concluding my remarks about this legislation, I emphasise that the amendment moved by the member for Jagajaga highlights the areas that must be addressed now by this government. This is overdue legislation, finally delivering on a 2004 election promise. I am glad the government has finally done something.

That being said, the simple truth of the matter is that this bill does not go far enough. It is a stop-gap measure, like so many aspects of this year’s budget. Nonetheless, it is a start and, for that reason, will be supported. The government, however, do need to get serious about this issue. They need to understand the connection between child care and early childhood education and the rewards in seeing them as part of the same investment. They need to understand the day-to-day difficulties facing Australian families in terms of both accessibility and affordability and respond accordingly to those concerns. They need much greater financial commitment in this area, simply because it is a good investment in our nation rather than simply because there happens to be an election in the near future. Rather than addressing it for that reason, it needs to be done because it is a good investment in our nation’s future.

In contrast to all that, as I have said, federal Labor is committed to ensuring that our kids get the education they need and deserve. It is federal Labor that is listening to the concerns of the community, hearing about those concerns and releasing policies such as those in Labor’s Education Revolution that will address those concerns, particularly when it comes to issues in relation to child care. Making sure that our kids get the best start from that early age is so vitally important.

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