Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. Will the minister update the Senate on how the government is supporting grandparents who are the primary carers of their grandchildren?

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

I thank Senator Smith for his question and acknowledge Senator Smith's interest in this topic and that he was indeed a champion of the Senate inquiry in this place looking into the care that grandparents provide to their grandchildren. Our government's Jobs for Families childcare reforms are, firstly, about trying to make the childcare payment system simpler, reforming three-plus different payment measures and subsidies into one simpler childcare subsidy system. Secondly, we are trying to ensure that they are fairer, that the support is there for families who work more to be able to access the greatest number of subsidised hours of child care and for families who earn less to be able to access the greatest rate of subsidy in relation to that child care.

As part of those fairness components we are very committed to having a strong safety net in place to support all those vulnerable children, vulnerable families and, indeed, grandparents who are the primary carers of their grandchildren. Importantly, we will be making sure that as part of our reforms grandparents do not have to meet the activity test requirements that otherwise apply to access to child care. The activity test is there to make sure that those families who most need child care and most need childcare hours are best able to access those hours, but we recognise that, in relation to grandparents who are the primary carers of their grandchildren, they are providing support, care and love to their grandchildren at times of great need but are quite often doing so in their retirement years and deserve a level of respite. They deserve a level of support, and we want to make sure that, wherever possible, they are not out of pocket for that support that they provide for their grandchildren. It is part of our commitment to making sure the childcare system is fair, is simple and is affordable for all of those who need it, supporting the most vulnerable while supporting those Australians who are accessing it to balance work and family obligations too.

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How will the Jobs for Families package further support grandparents who are the primary carers of their grandchildren and on income support?

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

In addition to waiving the activity test for grandparents, we are providing for those grandparents who are the primary carers and on some form of income support essentially a complete exemption from the likelihood of paying childcare fees. We are introducing an hourly cap on childcare fees, against which will be paid the subsidy of $11.55 for long day care. This is intended to place downward pressure on childcare fees over time and ensure that the extra $3 billion our government is contributing to child care does not have an inflationary impact on fees. To make sure that grandparents within that cap are able to access services they need, we will be providing an up-to-120 per cent subsidy against that hourly cap to ensure that, even where services are above the cap, grandparents are, hopefully, not out of pocket. We estimate this will support around 3,900 grandparents around Australia in their love and care for more than 6,000 grandchildren.

Dean Smith (WA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. How is the government funding this childcare package?

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

This is a very important aspect. Indeed, this side of politics recognises that, when you are going to embark on major reforms that come with additional costs—and the childcare reforms involve more than $3 billion of additional expenditure—they must be paid for. Some on that side seem to recognise that as well; I know that Ms Macklin, the shadow families spokesman, has acknowledged that the childcare reforms 'must be paid for somehow'. Yet the Labor Party have no means of identifying how they will pay for it. On this side of politics we have indicated reforms that will help to pay for this additional $3 billion in support—reforms so that we can afford to support grandparents in their care for their grandchildren, reforms so that we can ensure families who need the greatest number of hours of childcare support are able to access it, reforms to ensure that families who need the greatest level of subsidy are able to access the greatest level of subsidy. But those opposite seem to stand in the way of such reforms and stand against helping those who most need assistance. (Time expired)