Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Hansard source

The coalition government will not be supporting Senator Leyonhjelm's amendment either. We understand the arguments behind it. In framing these proposals we have sought to be judicious, as best we can, with taxpayers' money whilst not undermining the intent of the childcare system to provide support to families to maximise workforce participation, to enable choice about working and, of course, to support early education opportunities. That is why the government presented a package of reforms that for high-income earners does reduce their current level of eligibility. When those opposite talk about people who might lose under the government's reforms, they are always counting people on very high incomes who lose under the government's reforms. At present somebody on, for example, a cabinet minister's salary can receive 50 per cent of their childcare costs paid under the childcare rebate. We proposed reducing that to 20 per cent.

I note that Senator Hinch has an amendment that will make a change that does not go quite as far as Senator Leyonhjelm's. I can indicate that the government will support Senator Hinch's amendment in terms of saying that there is a point at which support can end. Senator Hinch has proposed that at $350,000. The government believes that Senator Leyonhjelm's amendment is well intentioned in terms of trying to save money. We absolutely acknowledge that and acknowledge that the amendments that were just defeated during various debates have avoided costs of around $260 million—or in excess of that—being added to the cost of the proposals.

Senator Leyonhjelm, your votes and actions to date have already helped to ensure a reduction in the cost of this proposal. Your support for Senator Hinch's amendment, if that occurs, may see further cost reductions. But we do not support yours, as we believe that it starts to enter a territory that could have notable negative implications for workforce participation and the benefits that flow from that, particularly given the research and work that has been undertaken by the Productivity Commission in terms of the design of the proposals.