Libby Coker (Corangamite, Australian Labor Party) Share this | Hansard source

Labor made one of its most significant commitments at the last election to families, to cut the cost of child care. The Family Assistance Legislation Amendment (Cheaper Child Care) Bill 2022 implements that commitment. The Albanese government is once again delivering. The government's reforms will cut the cost of child care for about 1.26 million families. Ninety-six per cent of families with children in early childhood education and care will benefit from this reform, and no Australian family will be worse off. This legislation will give children access to critical early education they may otherwise not receive. The cheaper childcare plan is good for kids, it's good for families and it's good for our economy.

Children are our most precious resource, and we know the first five years are everything. Early learning shapes the person we each become, and when we invest in our children we invest in our future. Our government is committed to giving every child the best possible opportunity in life to thrive. I know cheaper child care will help families with young children in rapid-growth areas like mine in the electorate of Corangamite. These families know all too well about the rising costs of child care—costs that have soared across the nation by 41 per cent in the past eight years. I'm especially thinking of young families who are struggling with the costs of establishing a new home while raising young kids, often within newly developing suburbs like Charlemont, Ashbury Estate and Anchoridge within the Armstrong Creek high-growth suburb, or established areas with fast-growing estates, like Bannockburn, Grovedale, Leopold, Torquay and Ocean Grove in my electorate.

A fortnight ago I hosted a baby expo for new parents across my electorate. It was very well attended, and parents were keen to learn about the services for them and their children within their community. Inevitably, as I moved around the expo chatting with parents, child care was a common theme. It's clear that parents, particularly women, want to make the best choices for their families around child care, early education and, importantly, workforce participation. Women want to choose to progress their career, develop their skills and, importantly, earn more. At the baby expo I was able to tell parents of the much-needed reforms in the legislation we're debating today, and the response from parents was overwhelmingly positive. There are some 6,000 families currently using approved child care within my electorate. Of those, some 5,800 will benefit from our government's cheaper childcare plan. Many others could also benefit as they consider the new opportunities offered by this reform. Making child care cheaper will help ease the cost-of-living pressures for many families by giving parents the opportunity to work more and earn more if they want to. That means thousands more skilled workers for our economy. Therefore, this legislation is about not just the cost of living but also economic reform—economic reform that will mean more women retire with more superannuation, with a greater sense of security and with a buffer against the growing rate of homelessness amongst older women. From July 2023 the government will lift the maximum childcare subsidy rate to 90 per cent for families with a combined income of under $80,000. It will also increase subsidy rates for families earning less than $530,000 annually. Analysis by Treasury indicates the impacts of this policy will mean up to 37,000 extra full-time workers, and they will be available for Australian businesses in the financial year 2023-24.

Many Australian parents want to work more but, if they do, under the current circumstances, their income is gobbled up in childcare costs. It's just not worth it. I've met with many families who have sat down with a calculator and figured out that working an extra day, or an extra two days, is just not worth it financially. By making these changes under this legislation, we'll be giving families the option to go back to work knowing they can afford quality child care, earn more and save more. According to the Bureau of Statistics, last year, 73,000 people who wanted to work didn't look for work because they couldn't make childcare costs work for them. Importantly, these reforms also mean that more children will potentially have access to quality early childhood education. As I've already stated, all the research shows that these early preschool years are significant formative years. Children learn to play, and through interaction with others they learn more and develop their skills. It prepares them for school. It prepares them for life. We know that when we invest in these early years we get better outcomes for them later on. At the moment, 60 per cent of mothers with young children work part-time hours. Under these reforms, a family on the median combined income of $120,000 and with one child in early childhood education will save $1,780 in the first year of this plan, and that's good news. The higher childcare subsidy for families with multiple children aged five or under in early childhood education will be retained.

The legislation also introduces measures to increase transparency in the early childhood education sector. It will mean that all large providers need to publicly report revenue and profits, together with commercial leasing information. The bill also helps families make more informed choices and puts in place measures to deter fraud. To attract and retain workers, the bill also allows providers to discount childcare fees for early childhood educators.

I am pleased the Albanese government is also introducing reforms to help more Indigenous children into early education. As part of the government's plan for cheaper child care, all Indigenous children will be able to access 36 hours of subsidised child care a fortnight from July next year. At the moment, First Nations children are eligible for only up to 24 hours subsidised child care a fortnight. These simple changes will benefit around 6,600 First Nations families. Not only do the changes help ease cost-of-living pressures; they provide more opportunities for First Nations children to access the development, education and health benefits of early childhood education and care. At the moment, just 4.3 per cent of children in early education and care identify as Indigenous, despite Indigenous children being 6.1 per cent of the population of children aged up to five years.

We know access to high-quality early education and care can impact the readiness of a child for school. In 2021, for the first time, the Closing the Gap target for school readiness went backwards. That's simply not good enough. We must turn this around. That's why our government will also invest $10.2 million to establish the Early Childhood Care and Development Policy Partnership between the Australian state and territory governments and Indigenous representatives. The partnership will be co-chaired by the Secretariat of National Aboriginal and Islander Child Care and will help drive the development of community led policies and programs that Indigenous families need for their children to thrive. These measures will help improve First Nations children's readiness for school. It's essential all governments work together and in partnership with First Nations people if we're to close the gap and improve outcomes in early childhood education.

Of course, all of these early education measures rely on having enough childcare workers. We know that in Australia at the moment we are short by about 6,500 workers, and predictions indicate this shortage will get worse before it gets better. That's one of the reasons why our government has committed to an extra 20,000 university places for next year and the year after. Those new places will include an allocation for those who are training to be early childhood teachers and educators. That's also why the Albanese government has allocated 465,000 free TAFE places to train up the workforce of the future.

The government knows that things are tough out there, and the Treasurer has said things are expected to get tougher before they get better. That's why the Albanese government is taking a number of practical steps. Cutting the cost of childcare through legislation is a significant cost saver which will help to ease the squeeze on many families. Our government is also cutting the cost of medicine. This will help many Australian families who need to spend at the chemist every week. Other measures include increasing the minimum wage by over five per cent. This will help many Australians who are living on low incomes. So these childcare reforms are one element of an Albanese government package of reforms to foster a better and more caring and inclusive Australia.

This legislation recognises that children are our most precious resource. It's part of delivering on our government's commitment to the parents and children of Australia. Together, we will build a better nation and a better future for families.

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