Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

My question is to the Minister for Education and Training, Senator Birmingham. A recent survey conducted by The Parenthood found that 34 per cent of respondents have been late in paying their bills, mortgage or rent because of childcare costs. Can the minister confirm that out-of-pocket childcare costs have risen every year under the Abbott-Turnbull government?

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

I thank Senator Collins for her question. I am happy to reflect on a few parts of that question. Firstly, in relation to the Facebook survey conducted by The Parenthood, it is a survey that is of questionable means. I note that the person out there commenting on it on the weekend is none other than a former Labor Party candidate, so it is clearly, of course, a credible, impartial survey that Senator Collins is citing! Nonetheless, in relation to childcare costs, the Turnbull government is incredibly proud to have legislated, through this parliament, reforms to childcare and early-education payments that are going to ensure the hardest working, lowest income Australians receive a significant boost in relation to childcare support in the future. And do you know what, Mr President? When we put those reforms through this parliament earlier this year, Senator Collins and all of her colleagues voted against them! That's what happened.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, a point of order on direct relevance. There is one question: can the minister confirm that out-of-pocket childcare costs have risen every year under the Abbott-Turnbull government?

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

That is correct, and I will remind the minister of the question that has been asked.

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

I am happy to confirm that this government has been concerned about childcare costs, which is why we have taken action. We have legislated reforms, which will come into effect on 2 July next year, that will deliver real relief to Australian parents. They will abolish, for all low- and middle-income Australian families, the current cap in relation to childcare fees and provide a significant increase for low-income families, from around 72 per cent to around 85 per cent support for their childcare fees. Our assistance is going to ensure, for example, that a family earning just $60,000 a year would be significantly better off in terms of the support they receive for their childcare assistance. Families right across low- and middle-income spectrums will receive more support in terms of what is subsidised as a result of the Turnbull government's reforms, as against those opposite, who did nothing when in power and have voted against the reforms that we have brought forward. (Time expired)

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

Senator Collins, a supplementary question.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

The government's own figures show that childcare fees are set to keep rising at over five per cent a year, with an average family with two children set to face fee increases of over $2,500 a year. Can the minister confirm that, under his changes, the cost to government will be capped but there will be no limit on the increasing out-of-pocket costs faced by parents? (Time expired)

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

I can confirm that, under our reforms, which will come into effect next year—notwithstanding the opposition of those opposite, who've done nothing to help in relation to childcare fees—for the first time ever, there will be a clear price signal built into the way in which childcare support is built, which will help to keep a lid on fee increases in the future by tying them to reasonable cost increases, ensuring there is a benchmark price across the sector and ensuring that there is something tangible—as recommended by the Productivity Commission as a result of their extensive consultations and work—as an effective means not only to provide additional support to low- and middle-income families in terms of their child care but also to do something about fee increases.

We know that when those opposite went to the last election all they promised to do was increase the cap on the childcare rebate. That was their solution. Of course, the last time they did it we saw a huge fee spike. We have totally overhauled the childcare system, including putting in place an efficient price indicator. (Time expired)

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

Senator Collins, a final supplementary question.

Jacinta Collins (Victoria, Australian Labor Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

The 2017 HILDA report found that:

… child care costs may be acting to increase inequality …

Isn't it clear that the government's continued policy failure in this area, including cutting access to early education and pushing children out of the system, is only acting to worsen inequality in Australia?

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

The biggest beneficiaries of our childcare reforms are the lowest income families. The biggest beneficiaries are the hardest working families because what we are doing is increasing the level of childcare subsidy to the lowest income Australian families. We're better targeting support—in terms of the hours of child care that are available—to the hardest working Australian families. We've put in place a mechanism to keep a lid on fee increases in the future. We are investing significantly more in child care. It will be around $37 billion of support—an increase as a result of our reforms of around $2.5 billion targeted at those low- and middle-income families—because we want to empower people to be able to make a decision, a choice, about when to work and how much to work without childcare costs being an impediment on the decisions for their family to guarantee that they are confident they can access high quality early education and to make sure that we give that access to those who need it most. (Time expired)

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

Before I call the Attorney-General, I will add to my remarks in response to Senator Cameron's point of order and the supplementary point of order, if I could put it that way, from Senator Wong. I didn't want to hold up question time—and just as well I didn't, otherwise the opposition would have lost a question. I will add that, if questions that are asked are shorter, sharper and more direct, it is far easier for me to make an instant adjudication as to whether the minister has been directly relevant or not. Of course, it's entirely up to the questioner as to how long they wish their question to be and how many components the question has.

Finally, could I add that, as I have done in the past and as I will continue to do in the future, if ministers are not directly relevant to the question asked, the minister will be reminded of the question. I wanted to add those remarks without taking up time in question time.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

With that salutary admonishment, I ask that further questions be placed upon the Notice Paper.