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

My question is to the Minister for Education and Training, Senator Birmingham. Would the minister advise the Senate as to how the Turnbull government's new childcare package has been supporting families since its commencement on Monday 2 July?

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

I thank Senator Gichuhi for her question about a very important reform that the Turnbull government delivered at the start of July, a reform that alongside tax relief and jobs growth policies is delivering support for Australian families and particularly for hardworking Australian families. Our new childcare package, introduced on 2 July, is providing benefits to nearly one million Australian families. It's the result of a $2.5 billion additional investment. Indeed, the typical Australian family, based on early analysis, will be better off by around $1,300 per child, per annum. Put than on top of the tax relief the Turnbull government is providing, the fact we are driving down energy costs and the fact we have driven up full-time jobs and it is demonstration of the fact that our policies for a stronger economy are delivering for Australian families and households.

Our reforms have been welcomed by many and I do note the Australian Childcare Alliance has said that a good proportion of families are better off from an affordability perspective, which is an indisputable, fantastic outcome. And they are better off because we abolished the annual childcare rebate cap of around $7,600 to ensure especially low- and middle-income families aren't limited by the annual cap on their child care and that they are able to, with confidence, plan to work the extra shift, work the extra day, knowing they won't run out of support for paying their childcare bills part way through the financial year. Around 85 per cent of families using child care will feel the benefits of the reforms. Many more will feel the benefits of support from the increased subsidy from around 72 per cent to 85 per cent for more than 370,000 low-income families, all of it backed by a strong safety net giving more support to the hardest working families.

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

Senator Gichuhi on a supplementary question.

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

Will the minister update the Senate on how families and providers transitioned to the new system?

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

The scale of implementing these changes was significant. More than one million Australian families transitioned on to the new package that commenced on 2 July but successfully they did so, engaging through the system to update their details and register for the new childcare subsidy. I want to thank the 99.9 per cent of eligible childcare providers who transitioned successfully for their support. Many provided direct assistance to families to make sure that they were able to successfully update the details required to receive every cent, every dollar they're entitled to. But we made sure we built in safety nets as well so that the small number of families who may not have transitioned in time or who experienced disruption in payments are eligible for back payments. We are making sure communications continue to those families and have been helping them every step of the way with letters, text messages, forums and advice through services and dedicated call lines to make sure families get the support they need for their childcare fees.

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

Senator Gichuhi on a final supplementary question.

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

Will the minister outline any other options for these families?

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

It is worth remembering that those opposite decided to vote against the additional support for Australian families. It is remarkable to think that was the case, that we could come along with reforms to abolish a cap on childcare support, to increase the rate of subsidy, to invest an additional $2.5 billion and yet the Labor Party just played politics and voted against it. So desperate were they to find failure, that when the reforms commenced at the start of July, the Labor Party set up a website to invite people to register their complaints and their concerns about the new childcare subsidy. But do you know what happened around three weeks after the website went up? It vanished. So little interest was there in the Labor Party's complaints website that they slunk away and they shut it down because, of course, Australian families were feeling the benefit of the changes. And they will continue to see the benefit, especially when we get to early next year and they no longer hit up against that cap and they continue to get support for those services.