James Paterson (Victoria, 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 the government's new childcare package? How many families will benefit from the package?

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

I thank Senator Paterson for his question and indeed for his interest in the Turnbull government's growing investment in supporting Australian families to make choices about when they work, the days they work, the hours they work and ensure that they're empowered to make choices that best support them, their families and their circumstances to manage work and family obligations. Nearly one million Australian families will benefit as a result of the Turnbull government's decision to back hardworking Australian families to be able to make such choices about their work and family arrangements.

We're investing around $2.5 billion, but we're managing to target investment not just by investing more but by better targeting what is currently spent in relation to support for childcare subsidies. That's because we're putting in place a clear activity test that ensures that families who are working the longest hours, studying or volunteering are the ones who will receive the greatest level of support. We also recognise that additional support for access to early education is essential for vulnerable families, which is why we equally established a $1.2 billion childcare safety net.

The benefits in Senator Paterson's home state of Victoria will be that around 75 per cent of families will be better off—many of them better off to the tune of some thousands of dollars per annum. In Western Australia, for example, around 72 per cent—I see Senator Reynolds sitting there next to Senator Paterson—of families will equally benefit. Tasmania, which has been a topic of discussion today—and I see Senator Duniam, on the other side of Senator Paterson—will see some 85 per cent of families of hardworking, low- and middle-income families benefit. And, in my home state of South Australia, some 80 per cent of families will clearly benefit as a result of these reforms. Even in Ms Rishworth the shadow minister's own electorate, 83.6 per cent of families stand to benefit. I'm amazed that she had the gall to vote against these reforms.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, a supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Minister, what settings in the package particularly benefit families?

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

A number of changes in this package will benefit families. At this time of year, many families are already struggling because their childcare rebate cap has been hit—the $7,500 ceiling. This means, from now until the end of the financial year, those families would be paying the full amount of their childcare costs, inhibiting their ability to earn a living whilst their children are being cared for.

Our reforms will ensure that for low- and middle-income families—all families earning less than around $185,000 per annum—that ceiling will be removed so that they will be able to work the number of days that best suit them without those childcare costs being an impediment to their contribution to the economy or to their decisions in terms of how they manage their work and family obligations. We see as well increased support in the rate of subsidy, again targeted at the lowest-income hardest-working Australian families.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Paterson, final supplementary question.

James Paterson (Victoria, Liberal Party) Share this | Link to this | Hansard source

Minister, what do families need to do in order to benefit from the childcare package?

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

Vote Labor!

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

I heard Senator Farrell's interjection there! Of course, the Labor Party voted against the Turnbull government's childcare reforms. The Labor Party apparently said hardworking low-income Australian families didn't deserve the thousands of dollars extra that they're going to receive in support from the Turnbull government. The Labor Party thought those Australian families didn't deserve to have the choice to be able to work more hours or more days to support their families. That's what happens if people vote Labor.

The Labor Party thought it could go to the last election with effectively no childcare policy, while the Turnbull government went with a comprehensive policy that we've now delivered. In around five months time, that will take effect. Between now and then, Australian families will receive clear information about the steps they need to take to update their information to make sure that they register appropriately to receive the maximum benefit. Indeed, since the middle of last year, essentially, we've had a childcare estimator out so that families are able to plan clearly for their future and make sure they know how this package of reforms will benefit them. (Time expired)