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

[by video link] It's a pleasure to join you virtually today to speak to the Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021. This bill builds on the success of the coalition government's childcare package that was implemented in 2018 and continues to deliver for families and children in Australia. The bill targets additional support to all CCS eligible Australian families with more than one child aged six in child care. Around 250,000 families in Australia will benefit by, on average, $2,260 per year, including 870 families in my electorate of Mallee. From July 2022, our government will increase the childcare subsidy available to families with more than one child, benefiting 250,000 families. The amendment will remove the annual cap on the childcare subsidy for families earning over $189,000 a year, benefiting around 18,000 families. This measure is so important because it removes barriers to employment for parents. Some parents have worked out that it would actually cost them more to take on an extra day or two of work because it will take them over the subsidy cap. We are removing this obstruction for thousands of people so they can take up more work for extra days and so earn more money for their family.

These changes will put more money into the hands of Australian families, especially those who need it most. Those on the lowest incomes will continue to receive the highest rate of subsidy. In fact, 60 per cent of the additional investment from these changes will go to families earning under $180,000. Half of Australian families will now receive 95 per cent subsidy for their second and subsequent children. A family in Mallee earning $110,000 a year will have the subsidy for their second child increased from 72 per cent to 95 per cent, and they will be $95 per week better off by utilising four days of child care. A family on an income of $80,000 with three children will have the subsidy increased from 82 per cent to 95 per cent for their second and third child and be $108 per week better off for four days of care. And a single parent on $65,500 with two children in four days of long day care who chooses to work a fifth day will be at least $71 a week better off. These changes will make a real difference to the lives of families all around the country and will equate to thousands of dollars of savings for families in Mallee.

These changes are yet another element of our government's commitment to sustainable and affordable childcare services across the country. Last month, I was pleased to announce the allocation of $2.6 million to support vital childcare services across Mallee to help meet the needs of local families. Fourteen childcare services across Mallee received funding through the Liberal-National government's Community Child Care Fund, which helps improve access to child care and increase workforce participation in remote, regional and disadvantaged communities. The service providers themselves were ecstatic to receive the support. The funds will provide much-needed support for services in Horsham, Donald, Mildura, St Arnaud, Nhill, Dimboola, Birchip, Murbein and Warracknabeal.

Our government is assisting childcare services that are operating in areas of limited supply to improve the viability and sustainability of their service. These investments have a flow-on effect to the local children and their families, and more broadly into the wider community, as workforce participation increases. It means that more families in Mallee can take advantage of the childcare subsidy if they choose to work, learn or volunteer. This support for families is occurring right across the country, with more than 640 childcare services around Australia sharing in more than $100 million through the program.

We know that access to child care is a significant barrier to workforce participation, particularly for women. Adequate child care is a critical element of economic prosperity. That's why I'm pleased that our government is implementing positive changes to the childcare subsidy and investing in childcare services to support their sustainability and prosperity. These investments are crucial to maintaining and improving access to child care for families in regional areas. But more needs to be done to deliver childcare services to rural and remote areas, where thin markets prevent the viability of these childcare services.

In the Wimmera Southern Mallee region, 11 of 21 townships have no centre-based long daycare available, with a further five townships having limited long daycare programs. The problem is that in 2019 a total of 536 babies were born in the same region. Invariably, some parents will miss out on child care and others will be forced to travel great distances every day, before and after work, to put their children in child care. This is true for Kendra, from Murtoa in my electorate, who is the mother of two young children. There are no childcare services in Murtoa, the closest being 40 kilometres away, in Horsham. This means that each parent, like Kendra, who needs to or wants to work locally must travel an extra two hours a day to drop off and pick up children. This causes a drain on the Murtoa community, because parents are disincentivised to take up employment opportunities in town.

Women in the Wimmera Southern Mallee region have more than double the level of postsecondary qualifications compared with men. Providing childcare support for women to participate in the workforce when their children are young would help address the extensive skilled workforce shortages and reduce loss of skills from the region. The story is much the same for townships in Loddon Shire, including Wedderburn and Inglewood. I recently met with Danny Forrest, the principal of Wedderburn P-12 college, along with Kerry Walker, Maddie Postle and Tammy Martin. This group of mothers and educators are campaigning for childcare services in their town. They told me there are currently about 40 children in need of child care. This is affecting countless families, and the group has compiled impact statements from families in Wedderburn, which they shared with me.

The question parents were asked is: how is the inability to access child care impacting you? One family responded: 'A lack of child care in Wedderburn caused my family to rely on one sole income. That was an apprentice wage. We basically lived in poverty without being able to afford healthy food. We fell way behind on bills, we couldn't afford medicines and we were so stressed out, and it got to the point where we actually had to move to Melbourne to live with family who could support us until we could get back on our feet and set up life here.'

Another mother said: 'The lack of child care in the area has meant I have been unable to find work locally. I have a five-year-old and a two-year-old and I'm currently 37 weeks pregnant. Without local child care, not only have my children not been able to socialise with other children at critical ages but it has financially impacted my family significantly, surviving on one or no income at times. Working out of town and having a child at the local kinder is not manageable. We don't have grandparents or anyone who can look after our kids and we rely on the system, which in Wedderburn has failed us.'

Another family, originally from Wedderburn, has often considered moving because of the lack of child care. They said: 'We would love to be part of the Wedderburn community again, raising our children with family, making memories with friends and contributing to the region by living and working locally. However, the inadequate childcare options and limited potential for growth for our business means that moving home is just not an option for us right now.' The problem is also contributing to a skills drain in the region. One mother said: 'Working in child care myself and having two children, I have to drive to Bendigo every day for care and work. I am very tired at the end of my day, with the extra travel I have to do five days a week. It would make our day a lot easier and allow me to spend more quality time with my children. As I am a diploma qualified childcare worker, I would love to work closer to home.' Another mother said: 'I am six months away from completing my university degree, a qualification that will be invaluable to our community. Due to having no child care, I am unable to complete this remaining six months. I'm on waiting lists for child care up to one hour away but still have not secured a place. It has greatly impacted my mental health, and I'm concerned that my child is not receiving the interaction that she needs with other young children.' I've received over 40 of these impact statements, which include many similar stories to these ones. I don't doubt that there are thousands of Australians living in rural and remote areas with similar issues.

The delivery of childcare services to these areas is a clear instance of market failure. The market cannot provide the services due to a lack of financial viability. A problem at the moment is that our current funding models are only available to operational childcare services, which need a minimum of 30 places daily to be financially viable in most cases. The shortfall relates to funding opportunities for establishing new services. Jessie Holmes, the CEO of Yarriambiack Shire Council, has done a lot of work in this space and has developed a solution. She has suggested that the childcare safety net, which has four grant streams, including the Community Child Care Fund, be tweaked to address these challenges. She wants to see the CCCF delivered on an annual basis instead of the biennial basis it currently is on. She wants a process to be established for applying for grant funding from the special circumstances stream for opening a new service, and she wants to see the maximum amount of capital support funding increased from $150,000 to $500,000 in recognition of the high cost of establishing and maintaining a new childcare facility. These are commonsense changes that would help to address the shortage of childcare services in townships across my electorate. I've spoken to the new Minister for Regionalisation, Regional Communications and Regional Education, Senator Bridget McKenzie, whom I know is a champion for rural and regional Australia. I'm pleased to have Senator McKenzie in my corner because she understands these issues better than anyone. I will continue working with the minister to ensure we achieve positive outcomes for families in my electorate.

I know that positive outcomes for these thin markets will be possible due to the coalition government's unwavering commitment to sustainable and affordable child care. Whether through funding from the Community Child Care Fund or the changes to the child care subsidy contained in this bill, our government is focused on providing childcare services to parents who need it.

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