Anthony Chisholm (Queensland, Australian Labor Party, Assistant Minister for Education) Share this | Hansard source

Thanks, Senator Roberts, for that contribution. The cost of early childhood education is a concern, and it's gone up 41 per cent over the last eight years. What this bill seeks to do is cut the cost for over one million families. That is what we are doing, that is part of our plan. We are tackling the cost of living and the challenge that we inherited on that front. The complementary measure that we have in place to ensure that we have fairness in pricing is the government has committed $10.8 million for an ACCC inquiry to commence next year as well. The inquiry will work in a complementary fashion with this legislation, if it passes. The ACCC will investigate the drivers of rising early education costs. It will examine the impact of these childcare subsidy changes on out-of-pocket fees and it will consider the effectiveness of the current mechanisms designed to put pressure on fee growth. That is our response, and we think it's the best response to tackling that challenge when it comes to the cost of living and ensuring that charges are responsible.

In terms of who will benefit from these changes, if you are a family on an income of $60,000, you will get a 90 per cent subsidy, which is worth $14,580 a year. That, for me, shows the substance of the package that we put forward before the election. What we're delivering on in government is that those people on a modest income of $60,000 will be the ones who get the most subsidy as a result of these changes, if we are to get them implemented.

In terms of the electronic payment of gap fees, this, from our point of view, is purely an integrity measure. The government is making a significant investment to cut the cost of child care, but we must protect this investment from fraud and ensure families receive the benefit and that taxpayer funds are used appropriately. The bill sets out a requirement for electronic payment of gap fees. This will allow the government to test whether gap fees have been paid, and it will present a significant obstacle for fraudulent services that try to claim childcare subsidy for care that isn't occurring. For anyone who's concerned about the use of taxpayer money and the fact that it should be used appropriately, this is an important measure that goes to tackling that problem to ensure that people can have trust in the system as well. Many key peaks and providers support this move, including Early Learning and Care Council of Australia and Outside School Hours Council of Australia as well. There are many forms of electronic payment that parents can choose from which do not incur costs, and that is what we think is an appropriate way to deal with any potential fraud.