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

My question is to the very able Minister for Education and Training, Senator Birmingham. Will the minister inform the Senate how the government's childcare package will support low-and middle income families in Australia?

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

I thank the most-extraordinary senator from Western Australia, Senator Smith, for his question. Thanks to the reforms of the Turnbull government, help is on the way for the hardest-working Australian families. Thanks to our childcare reforms in the legislation that passed the House of Representatives earlier today, around one million Australian families will be the greatest beneficiaries of the most comprehensive reforms to Australia's childcare system seen in decades.

These reforms will abolish the current $7½ thousand childcare rebate cap that so many Australian families fall over the cliff of, mid-financial year, meaning they run into all sorts of problems juggling work and family obligations and meeting the cost of child care. The reforms will recalibrate childcare subsidies to provide a higher rate of subsidy to low- and middle-income families, ensuring real benefits—in terms of thousands of dollars of benefits—flow through to the lowest-income Australian families. They will put downward pressure on childcare fees in future, through an hourly rate cap mechanism that will ensure the incessant fee increases we have seen in relation to child care become a thing of the past, once fully implemented. They put in place a strong safety net for the most vulnerable children, while also ensuring there are reductions in red tape and enhanced capabilities for childcare services to offer more flexible hours, more flexible services, and actually deliver services that suit their communities in the future. They also come with new compliance powers which can ensure that taxpayers are getting value for money in the future—of course, coupled with the activity-testing regime that makes sure that the greatest numbers of subsidised hours go to the hardest-working families, as we are equally ensuring the greatest level of subsidy goes to the lowest-income families. A family on $60,000 a year can expect to be more than $2,000 better off as a result of our reforms, carefully targeted to those who need it—

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

Thank you, Minister; the time for answering the question has expired. Senator Smith, a supplementary question.

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

A supplementary question to the very, very able minister: will he advise the Senate how the package will support children in regional and rural Australia, with particular attention to Indigenous children?

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

Much has been said about the transition of budget-based services in particular under this package. Senator Smith, Senator McKenzie—many of my colleagues and others, in this chamber and in the other place, have been strong advocates for regional and rural services in particular, and making sure that they are protected. There are around 300 of these so-called budget-based funded services providing early education and care, particularly in remote and rural Australia or for Indigenous children. The current model is a capped and closed funded program, but for the first time under our reforms these services will be able to access the new childcare subsidy, as well as the new additional childcare subsidy, whilst we are also guaranteeing continued budget funding for them of equal amount. This means these valuable services in rural and regional Australia and in Indigenous communities can be nothing but better off as a result of the Turnbull government's reforms, providing important early education opportunities in some of the most remote and vulnerable areas of Australia.

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

Senator Smith, a final supplementary question.

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

Can the minister advise the Senate if he is aware of any alternative policies?

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

Reflecting back on the debate this chamber had last week, it is quite insightful to look at the different positions that were taken around the chamber. We saw Senator Xenophon and Senator Hanson seek and secure assurances in relation to the remote services that I mentioned before. We saw the Greens move amendments. We saw Senator Hinch move an amendment. We saw Senator Leyonhjelm move an amendment and Senator Lambie propose an amendment. But what did those opposite in the Labor Party do? Did they come in here with any amendments, any alternative proposals? Not one single amendment from those opposite. All they did was oppose, all it was was negativity, because they have had not one constructive idea in this place.

Whilst disappointed at their lack of constructive ideas in relation to child care can I on the record though note approvingly of one unrelated matter from the opposition—Senator Farrell's tie today. I endorse what I suspect is the sentiment from Senator Farrell of cheering on the AFL women's premiers, the Adelaide Crows. (Time expired)