David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Social Services, Senator Fifield. Can the minister confirm that the Commonwealth is a party to the National Partnership Agreement on the National Quality Agenda for Early Childhood Education and Care? Can the minister confirm that the government provides funding to the states and territories under this agreement, including a significant contribution to the funding of preschool? Can the minister confirm that, regardless of your intentions, it is within the government's power to withdraw from the agreement and to discontinue the funding?

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

I thank Senator Leyonhjelm for his question and for the notice provided. I can confirm that the Australian government is a party to the National Partnership Agreement on the National Quality Agenda for Early Childhood Education and Care. The national partnership governs the implementation of a Commonwealth-state agreement for a nationally consistent regulatory scheme for child care and early learning. I should also indicate that withdrawing from the national partnership agreement would have no effect on the current regulatory framework. The states and territories have carriage of legislation and regulation in this area.

The Commonwealth is currently working through the review of the national partnership, with the states, and will be seeking to reduce the regulatory burden in the sector. The outcome of the review will be made public when all governments have considered the feedback on the proposed options, and the results of the review will be made public at that time. Finalising the review will allow all governments to move to the important task of negotiating the future of the national partnership agreement, and Minister Morrison's preference would be to see a revised national partnership agreement in place by the end of 2015.

I can also advise that the national quality agenda does not relate to funding for preschools. This is governed by the National Partnership Agreement on Universal Access to Early Childhood Education—and I am pleased that the government recently made a significant announcement on this. Earlier this month, the government announced that we will provide $840 million over two years to continue this agreement, ensuring Australian families continue to have access to 600 hours of preschool per year in 2016 and 2017. I should indicate the significant work in this area by Senator Ryan, who has carriage of this particular area of responsibility. This is just one of many examples of the government doing what it can to better support families and their needs.

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. A review of the agreement was conducted in 2014. Based on this review, how has the national quality framework affected childcare costs; how do these findings compare with the cost impacts modelled by Access Economics in 2009; and can you release the review?

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

As I have indicated, the Commonwealth is currently working through the review of the national partnership, with the states, and will be seeking to reduce the regulatory burden on the sector. It is true that the implementation of the national quality framework has led to an increase in costs for parents and the Australian taxpayer. This was an expected impact of the changes introduced by Labor and the state and territory governments at the time and was confirmed by modelling undertaken by Access Economics in 2009.

Insofar as the current review has any findings on the impact of the national quality framework on fees, that will be addressed when the review I referred to in my previous answer is finalised and the results released after Commonwealth and state ministers have considered the review later this year.

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Do you agree that government childcare subsidies partly benefit childcare providers and partly benefit childcare customers? If you do agree, what proportion of the proposed increase in childcare subsidies is likely to flow to providers instead of customers; if you do not agree, could you explain the economics behind such a view?

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

The government's $3.5 billion childcare package will provide greater choice for more than 1.2 million families by delivering a simpler, more affordable, more flexible and more accessible system. Changing the way we make child care more accessible and affordable is necessary to help families adjust to these changes and set them up for the future. More affordable access to quality child care puts the opportunity of work within the reach of more families, an outcome I know senators of all persuasions would support. The objective of the new childcare subsidy is to benefit parents who want to work, or work more, by providing more affordable and accessible child care. The childcare subsidy is a support payment for families—

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

Pause the clock.

David Leyonhjelm (NSW, Liberal Democratic Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order on relevance. The question was: what proportion of the proposed increase in childcare subsidies is likely to flow to providers instead of customers?

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

Thank you, Senator Leyonhjelm. Senator Fifield, I remind you you have 21 seconds left in which to answer the question.

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

Relating directly to Senator Leyonhjelm's question, the childcare subsidy is a support payment for families based on their incomes. It will be paid directly to approved childcare providers on behalf of families, to reduce the fees families have to pay. This administrative arrangement will be simpler for both families and childcare providers. (Time expired)

Senator Cameron interjecting—

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

Order! Senator Cameron, you have a colleague on her feet waiting to ask a question.

Senator Cameron interjecting—

Order, Senator Cameron!