Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Allison for the question. The government is investing more than $2.4 billion over the next four years in comprehensive early childhood reforms to improve the quality, affordability and supply of child care for Australian parents. It is a very central part of the government’s agenda. We have made enormous commitments in this budget to progressing that agenda not just strictly in the childcare area but in the early education area, which is also very much part of the strategy for Indigenous children to ensure that they get the best start in life and have opportunities for both child care and early education in preparation for formal education. It is not only my experience but it is supported by research that Indigenous children start off at a disadvantage when they enter primary school because of the lack of support and access to learning environments before they start school.

In answer to the specific question, we have honoured our commitment to establishing up to 260 additional childcare centres across Australia by 2014. The first instalment of that was in the budget. As you quite correctly pointed out, we have made a huge first step in meeting that commitment but we have not claimed that we will get those 260 additional childcare centres by the end of the first financial year of our government. What we have said is that we are going to have a very large program of providing additional childcare centres.

We are very focused on ensuring that in areas of need we are able to build new childcare capacity. As we all know, though, the childcare industry is part of a market, and large parts of the demand for places come from the provision of services and centres by private providers. But we are committed to establishing the 260 additional childcare centres to try and pick up the areas where demand has not been met, or where need has been established and there are economic issues that need to be addressed. We are going to look at how these centres are delivered to ensure the diversity of provision and the equity of access, and that includes provisions through both new private and/or community based partners. So we are trying to ensure that we get a spread throughout the nation and also that we have a range of providers. We will be selecting providers for these new centres from those who have a track record of performance and who have a track record of affordability. Contrary to the sort of assertion made in the senator’s question, the government is committed to honouring its election promise in this area, as in all areas. The Prime Minister is very firm on that fact. These are not core and non-core promises, as was the attitude of the previous government.

The other major aspect of the government’s childcare agenda, as Senator Allison would know, is that we are increasing the childcare tax rebate from 30 per cent to 50 per cent of out-of-pocket expenses up to a limit of $7,500. This is not income tested and can now be paid quarterly, so from 1 July we will have not only a commitment to providing more places but also a very serious increase in the rebate paid for out-of-pocket expenses. (Time expired)