Ann Sudmalis (Gilmore, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Revenue and Financial Services. Will the minister advise the House on how making our childcare system more affordable, flexible and accessible for all Australian families will create jobs and relieve the cost-of-living pressures for them? Is the minister aware of any problems and alternatives that may occur?

Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I thank the member for Gilmore for her question and for her powerful advocacy on behalf of her constituents, who believe that it is so important to have access to affordable child care. She, like them, knows that access to affordable child care means that mothers and fathers who want to increase their work hours, who want to spend time studying or training, or who want to in fact return to the workforce are able to do so, and that there is no barrier in place.

By providing access to affordable child care, the Turnbull government is giving Australian families real choices about their lives. It is a critically important economic reform. Our fully funded childcare reforms will help around 129,000 families by abolishing the rebate cap for those families that earn less than $185,000. Those who are high-income families earning more than $185,000 will have an increased cap of up to $10,000 each year.

This is very important because there has been new data released today that shows that thousands of families have hit the childcare assistance cap just weeks into the new year, and that means out-of-pocket costs for them. Just two weeks into the new year, more than 3,600 families hit the $7,500 rebate cap for access to early childhood education and care services. We know that families usually face this childcare cost cliff in the middle of the year, and it cripples household budgets. It means that one parent usually has to go out and earn a living just to pay for childcare costs, and will often result in a parent working fewer hours than they otherwise would work, or a child being abruptly withdrawn from their child care or early learning opportunities. Our reform package provides those families with real relief for those out-of-pocket childcare costs. It ends the stress of reaching that childcare cost cliff, and it empowers parents to be able to make decisions about their families and their work lives.

Those opposite are being reckless with Australian families. They have complete disregard for Australian families because they are standing in the way of these critical reforms—reforms that were introduced into this place only last week. They are going to leave around 129,000 families worse off if they continue to block these reforms. Those opposite went to the election promising that they would continue the current system. They then went to the Press Club and they said that they were going to have a national conversation. But the truth is that they have got no plan other than hurting families. Get out of the way of real reform.