Brett Mason (Queensland, Liberal Party, Parliamentary Secretary to the Minister for Health and Ageing) Share this | Hansard source

The Families, Community Services and Indigenous Affairs Legislation Amendment (Child Care and Other 2007 Budget Measures) Bill 2007 gives effect to three key measures from the 2007 budget—two of them to boost childcare programs for Australian families, and the other to extend the benefits of the health care card to certain young people with disabilities and severe medical conditions. The childcare measures in the bill are a major element of the government’s investment of an extra $2.1 billion for families with childcare costs. With this extra investment the total projected expenditure in child care over the next four years is $11 billion. Families will have more choice about participating in the workforce and more opportunities for quality child care.

The bill delivers a 10 per cent increase in the rate of childcare benefit from 1 July 2007, over and above the normal CPI indexation increase applicable from that date—a total increase for families of more than 13 per cent of their current rate. Families could get up to an extra $20.50 per child per week towards their childcare fees, depending upon their incomes. Over 730,000 families should benefit from the increase, and the Family Assistance Office will adjust families’ entitlements automatically.

The second childcare measure in this bill will convert the childcare tax rebate to a direct payment by the Family Assistance Office, thus improving and speeding up families’ access to the payment. The childcare tax rebate allows families to claim up to 30 per cent of their out-of-pocket childcare expenses, up to $4,000 per child per year, indexed annually. However, because the rebate is currently accessible through the tax system as a reduction in a family’s tax liability, families have had to wait up to two years to claim so that payment accuracy can be assured. Also, families with low or no tax liability may not have been able to claim their full childcare tax rebate entitlement.

The improved rebate will, from July this year, be delivered to families directly by the Family Assistance Office. Payments will be made at the end of each financial year in which childcare expenses have been incurred, following the lodgement of tax returns, and to all eligible families regardless of tax liability. A family could receive two childcare tax rebate payments, potentially a total of $8,000 per child, after July this year if they paid for child care in both the 2005-06 and 2006-07 financial years: one payment through the tax system and one through the Family Assistance Office. The new childcare tax rebate will be a big step forward for families managing their childcare expenses.

Young people with disabilities and severe medical conditions will benefit from the third measure in this budget bill, which will extend to them the healthcare card. Carer allowance child currently provides a healthcare card in the name of the young care receiver. However, this healthcare card lapses when the young person turns 16, and they will no longer have a concession card unless they qualify for a low-income healthcare card or they have access to a concession card through their qualification for an income support payment such as disability support pension.

Around 25,000 full-time students aged between 16 and 25 who used to be carer allowance childcare receivers will now be able to apply for a healthcare card in their own right. The new healthcare card will be valid for 12 months, and young people will need to reapply for it each year, confirming their full-time student status. This initiative will considerably help these young people and their families with the ongoing medical costs of managing their disabilities or medical conditions. This help with those costs will hopefully encourage students to continue their education and therefore their participation in the Australian economy in the long term. I commend the bill to the Senate.