Julia Gillard (Lalor, Australian Labor Party, Deputy Prime Minister) Share this | Hansard source

I am endeavouring to answer the member’s question. What the government is doing to deal with childcare fee increases is to increase the childcare tax rebate from 30 per cent to 50 per cent on 1 July. This means that families in all income levels with children in approved care will get increased government assistance—that is, the amount that they pay for child care will be reduced. Obviously there have been media reports in the last few days about childcare operators considering fee increases. We need to remind ourselves, of course, that childcare fee increases happen from time to time and that, of course, there are increases in costs in child care. When there are legitimate increases in costs, that is reflected in fees. But, even with some of the percentage figures we have seen named in the media in recent days—and there have been a variety of figures, including figures in the range of two to three per cent, suggested as likely fee increases—with the government’s increased childcare tax rebate working families would still be better off.

What we have indicated to childcare operators is that the government will be watching prices, something the Howard government neglected to do because it was not concerned at all about this issue. We will be watching prices, and we are putting operators on notice that, if any evidence emerges of unfair pricing practices, the government will be ready to use the powers at our disposal to deal with the matter.

We are talking, at this stage, about working with industry to ensure that any price increases are legitimate reflections of increased costs. I would have thought that every member in this House would want to send the same message on behalf of working families to childcare operators: that every member in this House would want to see working families benefit to the maximum extent from the government’s new childcare tax rebate initiatives. All I can conclude from this question—and, most particularly, from the interjections during it—is that members opposite could not care less one way or the other. Well, despite their indifference, the government will be getting on with the job of increasing the childcare tax rebate and ensuring that working families enjoy the benefit of the increased rebate.

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