Sarah Hanson-Young (SA, Australian Greens) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Social Services, Senator Fifield. My question is in relation to the government's decision to fund its new childcare package by cutting family payments and access to paid parental leave. Yesterday, mothers around Australia were shocked to wake up to the news that Joe Hockey's Mother's Day gift to them was to strip them of their PPL benefits. The government's stunning backflip on PPL will mean that half of all new mothers will lose up to $11,500 a year from July 2016. Can the assistant minister please explain how he expects families to manage losing thousands of dollars, ripped from their family budgets?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

On indulgence for a moment, I know that we all in this place like to encourage an interest in civic and public affairs amongst young people and, in that stead, I acknowledge the members of the Australian Liberal Students Federation here in the gallery today.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order! On my left! Pause the clock.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I was going to ask you to stop the clock and go back to the beginning, please.

Stephen Parry (President) Share this | Link to this | Hansard source

Thank you, Senator Whish-Wilson. We will give plenty of time for Senator Hanson-Young's answer to be given.

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I thank Senator Hanson-Young for her question and for highlighting the very important package that the Prime Minister and Minister Morrison announced yesterday in relation to child care. One thing we know on this side of the chamber is that governing is all about choices. It is all about prioritising. There are many things that, whoever the government of the day is, the government would like to do. But the difficult business of government is about prioritising, and that is why the Treasurer and the Prime Minister have made clear that the childcare package that has been announced will be funded through savings which were proposed in the last year.

Senator Hanson-Young also makes reference to the announcement yesterday by the Treasurer in relation to paid parental leave, and I can confirm that, from 1 July 2016, employees will no longer be able to access the full value of the Paid Parental Leave scheme if they are also entitled to an employer provided paid parental leave scheme. This has been colloquially referred to as 'double dipping'. We think it is reasonable that, if someone has an employer provided paid parental leave scheme which is more generous than the government's Paid Parental Leave scheme, it should be sufficient. You know, and I think every colleague in this place knows, that there is no-one who is more supportive of paid parental leave schemes than the Prime Minister. What we are seeking to do here is to strike a balance. We want to make sure there is paid parental leave for everyone who is entitled, but we also want to make sure that, when there is already a generous paid parental leave scheme provided by employers, people will not double dip. (Time expired)

Sarah Hanson-Young (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. The government has announced that the cuts to PPL benefits will take place in July 2016, but the childcare package will not commence until July 2017. Families will be left out of pocket for at least a year with no PPL scheme and no new childcare benefits. How does the government expect families to get by in 2016 with no PPL, no family payments and, of course, no reduction in childcare fees?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I thank Senator Hanson-Young for her supplementary question. I do not entirely follow Senator Hanson-Young's question, because Senator Hanson-Young said there would be no PPL. We have made it clear that all we are doing is preventing the capacity of people to, in effect, double dip. So, whenever there is already an employer provided scheme that is more generous than the government's PPL scheme, people have that employer supported scheme. If they do not have the benefit of an employer scheme then they will, as they do now, continue to have an entitlement to the government's Paid Parental Leave scheme.

Sarah Hanson-Young (SA, Australian Greens) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. All children currently have access to two days of early learning per week. How does the government justify to low-income families that their children deserve only one day of early learning per week under the government's new scheme?

Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Link to this | Hansard source

I assume Senator Hanson-Young is making an oblique reference to the new activity test that will come into being. I am pleased to let you, Senator Hanson-Young, and colleagues in this place know that those families who do not meet the activity test will be assisted through the child care safety net. Also, up to 24 hours per fortnight will be provided to children from families with incomes less than approximately $65,000 per year, who do not meet the activity test, to ensure continued access to early childhood learning for these low-income families. The 24 hours is equivalent to two six-hour sessions, which is the same period provided for K to 12 public school education, and service providers will have the flexibility to deliver those sessions. I am pleased to have the opportunity to share that with the chamber.