Anne Webster (Mallee, National Party) Share this | Hansard source

The government is providing $1.6 billion this quarter through the new Early Childhood Education and Care Relief Package, supporting close to one million families doing it tough during the COVID-19 pandemic by providing free child care. The government is also providing approximately $1 billion in JobKeeper payments this quarter to the childcare sector. This adds to $2.6 billion, which is more than $1.9 billion budgeted, to spend in business in usual times. This package is providing hip-pocket relief to families across the country, including in my electorate of Mallee, while also ensuring 98 per cent of the 13,000 early learning and childcare services can keep their doors open and make it through the other side of this crisis.

This plan was designed to provide certainty to our early childhood educators and childcare services at a time when enrolments and attendance are highly unpredictable. It also gives parents certainty that, through all of the recent disruptions, they will have access to the childcare services they need. Having said that, the review is very welcome. I am very aware in Mallee of particular childcare centres that have struggled to make this work. The plan was designed to provide certainty.

The relief package provides consistent payments, even if attendance decreases. This has provided financial stability for service providers who are facing uncertain attendances. This relief package complements other government initiatives, including JobKeeper. Eligible employers are receiving a further $1,500 per fortnight per employee to subsidise wages and reduce costs. This subsidy is extremely important because approximately 60 per cent of costs for childcare services relate to staff wages. The JobKeeper payment goes a long way towards retaining staff. The Australian tax office is working with providers to ensure that as many eligible services as possible can receive these payments. It's true that some services do not qualify for the JobKeeper payment, but the government is supporting these services with exceptional circumstances supplementary payments that are built into the relief package. This supplementary payment supports services that are part of non-government schools, large charities and not-for-profits, as well as those operated by local councils. It is also provided in instances where there has been an increase in the level of care provided compared to the reference period. This means that if services have more children attending now than during the reference period they can apply to receive a higher payment. Providers of family day care and in-home care services can also apply for supplementary payments on behalf of contracted sole trader educators, provided these educators apply for an ABN by 1 June 2020.

Eligible employers are being further supported through the cashflow boost payment, with up to $100,000 helping these businesses to stay open and provide continuity of service to families. The relief package is assisting over 98 per cent of the 13,000 childcare services to keep their doors open across Australia, including more than 1,000 services located in regional and remote communities.

The Australian Childcare Alliance has backed the relief package, describing it as, 'an extraordinary measure that will help struggling providers keep their doors open to vulnerable children and those parents who need to keep working.' The alliance said that 30 per cent of childcare providers faced closure in the weeks leading up to the announcement of the package due to massive withdrawals of enrolments. Dramatic falls in attendance due to COVID-19 threatened the viability of the sector and provided the impetus to develop a solution. The childcare sector told the government in no uncertain terms that operators would go out of business, workers would lose their jobs and families would lose their childcare service altogether without government action.

Childcare services are vital in my electorate of Mallee. I've spoken to families, local councils and childcare providers from my electorate, including Montessori Beginnings in Mildura and Little Swans Early Learning in Swan Hill. I've listened to their feedback on this package. And I've been working closely with Minister Tehan to make sure he is informed. I know that Minister Tehan, and the entire Morrison-McCormack government, is working towards positive outcomes for millions of Australian children and families, while ensuring that the 13,000 childcare services across the country are supported through these unprecedented times.

In answer to those opposite, the government has funded free childcare services. With over $2.6 billion in funding we are assisting 13,000 early learning and childcare providers and we are supporting around one million families with free services during this pandemic.

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