Hollie Hughes (NSW, Liberal Party) Share this | Hansard source

Absolutely, Senator Smith! Congratulations all round on fabulous leadership by our Prime Minister—and of course well supported by the Treasurer, in Josh Frydenberg. Since that time, and since the election just over 12 months ago, Australians have consistently breathed a sigh of relief that it is once again the Morrison government charged with leading us through this pandemic and these unprecedented times. That's why I'm proud that our government has always, and very strongly, supported families and the childcare sector, both before and also during this pandemic—through this COVID crisis.

One of the things that I think we should all be very, very proud of and where we should give the credit where it is due—to the Prime Minister, Mr Frydenberg and the wonderful efforts of the leadership team—is that a staggering 99 per cent of childcare services in Australia have not ceased operation since the pandemic began. Let me just make that point again because I'm not quite sure those opposite fully understand this: 99 per cent of childcare services in Australia have not ceased operation since the pandemic began. This must be unique in so many ways to the childcare sector. Very few industries and organisations haven't been dramatically impacted by COVID. It's the incredible work and leadership by the Morrison government that has ensured that this number of centres have been able to remain viable.

This incredible achievement is so important for a huge number of reasons. It's not just that the service providers, organisations and families, as they are quite often small family businesses, are still operating. It's ensuring that families are able to keep working, that mums and dads can get their children where they need to be in safe childcare centres that they choose whilst they go to work. It's keeping Australia working and getting Australians back to work as we come out of COVID that is going to ensure that our economy can recover. So we need to make sure that not only are the childcare centres still operating but families are able to go to work and our incredibly precious resource that is our children can enjoy uninterrupted learning, consistent care and, most importantly of all, play.

The aim of this bill and the amendments in it is to ensure that care is available to the most vulnerable and disadvantaged children and their families. I can assure you, having spent a number of years living in a town called Moree, which, by any stretch of the imagination, has every sort of socioeconomic group and is certainly very familiar with children who are at risk and very vulnerable, that it was quite often the childcare centres that offered children the opportunity to go somewhere stable every day. It was often in a family day-care setting or in a childcare centre setting where they received the most consistent care in an environment that was secure and safe for them, which was something that was unfortunately not always the case in their own homes. So this is ensuring that children of families that are vulnerable and disadvantaged are still getting opportunities, being exposed to peer play, exposed to early literature and getting to understand from other children and teachers how to participate in a learning environment. It is incredibly important that these families are front and centre of what we do and that we make sure that those families who rely on childcare benefits to keep their children in care are able to access them and able to do so as easily as possible.

As I've mentioned today, under the childcare relief package, around 99 per cent of childcare providers have kept their doors open. I think it's important to note that this financial year we will spend more than $9.4 billion on childcare services support. It's record funding, yet those opposite still can never ever acknowledge that. In fact, I wouldn't be surprised if we start hearing about a cut, because I'm not sure their maths ever add up. It is an absolute record volume of spending and funding going into this important and precious resource, and it's needed. These once-in-a-generation reforms have delivered a significant reduction in out-of-pocket costs to parents. Since our package was introduced, more parents have had greater access and greater financial support. It's available to those who need it most.

There are over one million Australians who are balancing work and parenting. In fact, an increasing number of them work in this building and have travelled here to Canberra to work and contribute to our country—parliamentarians.

Senator Dean Smith interjecting—

Exactly as Senator Smith acknowledges, there are plenty of parents who are parliamentarians working from home on Zoom calls but who have children in child care. Their children deserve that consistency of care, as do all children. It is all those one million Australians who are balancing work and parenting who are benefiting from the package.

What I think is incredible to note—and this is when we hear from the other side those decrying the cost of child care and saying that everything should be free; I'm not sure who's ever going to pay for it, but that's not part of their logic—is that around 72 per cent of parents pay no more than $5 per hour in day-care costs. But it's also important to note that 24 per cent pay no more than $2 an hour. The Morrison government has brought these significant reforms to the childcare sector—some the most significant reforms in the past 40 years.

I'd also like to acknowledge the work of the Morrison government in that we have prevented $3 billion of taxpayers' money from being claimed fraudulently. At the forefront of all of these considerations that we must keep in mind is that this is taxpayers' money. These subsidies are taxpayers' money, and we need to make sure that they are being spent wisely and that they are accounted for but also that they are going to those who require them most.

Since 13 July 2020, our transition package, including a payment of 25 per cent of a provider's pre-COVID revenue, has supported centres around Australia. Recently, thanks to Premier Andrews, we saw a mismanagement of quarantine, perhaps, in the state of Victoria—we saw a second wave—meaning that parents are no longer able to go to work as they face another lockdown, and those centres are therefore vacant of children who are locked in their homes. But those centres in Victoria have benefited from additional support in response to this current situation.

The bill clearly shows that, following the return to a demand driven childcare subsidy on 13 July 2020, we are continuing to remain committed to improving access to child care, especially for the most vulnerable and disadvantaged. Of course, as Liberals we are committed in every sector—across all industries but especially here—to cutting the red tape for families and childcare providers. By cutting that red tape, the impact for providers and families will ensure that we have improved access to services for vulnerable children—those who require it most.

The additional childcare subsidy is a top-up payment to the childcare subsidy. The Australian government has paid almost $50 million in the additional childcare subsidy (child wellbeing) to cover childcare costs for 21,500 children in the 2018-19 period, but we are still working to support this sector. The good news is that the determination for period of time a provider can apply for additional subsidy rates will be extended from 13 weeks to up to 12 months for children who are under a long-term protection order, such as those in foster care—and I think we can probably all agree that they are some of our most vulnerable and disadvantaged children. This change recognises the support vulnerable children need over longer periods.

Other amendments will enable providers to backdate families' additional childcare subsidy beyond the current limit of 28 days—and up to 13 weeks in exceptional circumstances. Childcare providers will also be able to enrol children who are in foster care under additional childcare subsidy arrangements for an initial period of 13 weeks, giving individual foster families sufficient time to lodge their childcare subsidy claim and to have it assessed by Services Australia. Of course, Services Australia has increased its productivity under the leadership of Minister Stuart Robert, and we look forward to that continuing as he continues to roll out improvements across Services Australia. There are existing provisions where providers are required to notify Services Australia when a child is no longer considered to be at risk. This will continue to apply, ensuring we maintain the targeted approach that we apply to all sorts of payments across our welfare system.

I will talk about a few more technical aspects of this important bill. The bill will amend provisions relating to the additional childcare subsidy as well as the childcare subsidy in the A New Tax System (Family Assistance) Act 1999 and the A New Tax System (Family Assistance) (Administration) Act 1999. The additional childcare subsidy (child wellbeing) provides additional childcare fee assistance to an individual or a provider in limited circumstances—for children that are at risk of serious abuse and neglect.

The bill was drafted after the Morrison government took on feedback from the childcare sector. I think something that cannot be stressed enough are the consultations conducted across the sector to ensure that this bill and its amendments are best suited to those who provide these services and the families that utilise them. Stakeholders have raised areas where improvements can be made, streamlining access to additional childcare services as they relate to child wellbeing. The sector and parents reached out to the Morrison government and we've listened, as we are prone to do.

These amendments are all in the context of the new childcare package implementation that occurred on 2 July 2018 and, more recently, in submissions to the Senate inquiry into the Family Assistance Legislation Amendment (Building on the Child Care Package) Bill 2019. I'm pleased to address this important bill which provides extra support to our most vulnerable Australian children.

Since the start of the pandemic, we've invested $708 million in a transition package. This is on top of the $8.9 billion per year in childcare subsidy payments. Childcare fees have been capped and providers have been required to guarantee employment levels by maintaining the same average number of staff. We're relaxing the activity test until 4 October 2020 to assist families whose employment has been impacted by COVID-19. Families that have been impacted by the pandemic may receive up to 100 hours of subsidised care per fortnight during the transition period. The Morrison government has committed to waiving the gap for those services forced to close on public health advice as a result of COVID-19 and we've extended the waiver until 31 December.

Now we come back to Victoria, as it experiences this second wave. We need to acknowledge that the Morrison government has provided Victoria with an additional $33 million of support. Melbourne services will receive a higher transition payment of 30 per cent and they may also be eligible for a top-up where childcare subsidies received are low and they have greatly reduced attendances because families are experiencing a prolonged lockdown. Victorian families will get an extra 30 days of allowable absences, bringing their total to 72 days.

Hopefully, the 72 days and Premier Andrews's grab for power for the next 12 months don't come to fruition and things will be allowed to get back to normal—people will be allowed to get back to work as restrictions ease and therefore children will be able to return to child care. Childcare services subject to stage 3 or higher can waive gap fees if children aren't attending and absences are claimed, allowing enrolments to be maintained and the childcare subsidy to be paid. Outside-hours school services in Victoria will receive an additional viability support payment of 15 per cent of their revenue if attendance falls by 40 per cent. On average, the government expects that services in Melbourne will receive between 80 and 85 per cent of their pre-COVID revenue. Whilst I've no doubt we will see this decried from the opposition benches, I am sure there are plenty of travel and hospitality businesses—particularly in the 'Republic of Palaszczuk' and over in the 'Republic of WA', although I don't even think we can call it the 'Republic of WA' anymore when they're putting electronic bracelets on quarantined people—that would love to ensure their revenue remained at 80 to 85 per cent. But, of course, that is not the case.

I would like to congratulate the Morrison government on bringing forward these amendments and ensuring all children have access to child care. (Time expired)