Lucy Gichuhi (SA, 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 will the package benefit low- to medium-income families?

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

I thank Senator Gichuhi for her question and for her very personal interest in relation to support for Australian families in accessing quality child care and quality early childhood education and having financial assistance to do so, particularly for those from low- and middle-income backgrounds. From 2 July this year, the Turnbull government's reforms to childcare arrangements will provide greatly enhanced support targeted at the hardest-working low- and middle-income Australian families. In fact, more than 283,000 families on family incomes of less than $65,000, approximately, will receive increased rates of subsidy as a result of our reforms. More than 483,000 families earning between $65,000 and $170,000 will also receive greater levels of childcare subsidy and support. This is because the Turnbull government is better targeting support to those families on low and middle incomes, who are also working the longest hours. It's about making sure that they receive better support in recognition of the hours they work or study or volunteer, and that's what our new activity test seeks to do.

It's also about increasing the rate of subsidy for those families, which is why we're lifting that from around 72 per cent to 85 per cent for those hardworking low-income families. It comes with a strong safety net, ensuring that children in very low-income families are still able to access additional hours of child care, but importantly it provides benefits right across the nation. In Tasmania, some 85 per cent of families will benefit. In Victoria, some 75 per cent will benefit. In Western Australia, some 72 per cent will benefit. In my home state of South Australia, roughly some 80 per cent will benefit. In the shadow minister's own electorate in South Australia, some 84 per cent of families will benefit because we're targeting those who need it most.

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

Senator Gichuhi, a supplementary question.

Lucy Gichuhi (SA, Liberal Party) Share this | Link to this | Hansard source

How will the Turnbull government's new childcare package drive workforce participation?

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

Presently, families can access the childcare benefit without demonstrating any activity at all in many instances. What we are doing through this, as I said before, is better targeting support to families who meet an activity test. But it is a light-touch activity test; families need only undertake around four hours of work, training or study per week in order to access some 18 hours of subsidised early education and care. Under the reforms, our estimations are that some 230,000 Australian families will increase their workforce participation—that is, these families will be empowered to choose to work more hours or work more days. They have the choice of doing so not just because of our increased support but because of the Turnbull government's growth in employment and jobs across Australia. Our jobs record is that some 403,000 additional jobs were created last year. And through our childcare reforms more families will get more support to fill the greater number of jobs in our economy.

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

Senator Gichuhi, a final supplementary question.

Lucy Gichuhi (SA, Liberal Party) Share this | Link to this | Hansard source

How can families maximise the benefits under the new childcare package?

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

It is relatively simple for families to be able to make sure they can access the early childhood education and care that they need, that they desire. A four-hour per week activity test is, as I said before, a light touch. It can be met by working, by looking for work, by studying, by training or by volunteering. Volunteering activities could include attending your local childcare centre, preschool or early education centre and reading with children or working in the school canteen. They could include a range of different activities that ensure families are able to qualify just through a relatively straightforward commitment to activity. What we're trying to do here is make sure that there is quality support for early childhood education in preschool, in a strong safety net, but also to make sure that we motivate families to be engaged in all aspects of the education and care of their children and to target support to those families who need it most.