Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Early Childhood Education, Senator Watt. The Albanese Labor government has made making early learning more affordable for families a priority of our first year in government. The government clearly recognises the critical role early learning plays in a child's development and boosting our economic prosperity by supporting workforce participation. Why has the government made early learning a priority, and what changes is the government making to the childcare subsidy from July? How will these changes impact on Australian families, easing cost-of-living pressures?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you, Senator Green. I know this is a topic very dear to your heart, with baby Stevie now participating in early childhood education herself, and what a bright young woman she will turn out to be, I have no doubt. The Albanese government has made early learning a priority of our first year. We've done this because we know how important affordable early learning is. We know that for too many families the cost of early learning has put it out of reach. Unfortunately, under the Liberals and Nationals, out-of-pocket costs for early learning went up by 49 per cent, and that is not helping cost-of-living pressures, I don't think—is it? We, on the other hand, are taking action to ease cost-of-living pressures on Australian families by making early learning more affordable. From July our changes to the childcare subsidy will boost the maximum subsidy rate to 90 per cent for families earning $80,000 or less.

Gerard, we know you don't like child care, and we know what you have said about Dorothy and child care and things like that.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt, I do remind you to direct your answers to the chair. Senator Rennick?

Gerard Rennick (Queensland, Liberal Party) Share this | Link to this | Hansard source

On a point of order: could he withdraw that. I very much care about child care. There is no more important role than mothers and fathers play in raising their children.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Rennick, that is not a point of order. I don't believe Senator Watt was reflecting on you adversely. Senator Watt, please—

Opposition senators interjecting—

Order!

Order! Senator McGrath, you are out of order. Senator Wong?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Senator McGrath's disrespect of you—

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

I withdraw.

Opposition senators interjecting—

Sue Lines (President) Share this | Link to this | Hansard source

Order on my left! When there is silence I will respond. Senator Rennick, I did not understand that that was what Senator Watt said, but, as he said it, I will invite him, if he thinks it needs to be withdrawn, to withdraw it.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I'm happy to review the Hansard. But I'm also happy to withdraw.

Opposition senators interjecting—

Calm down! Calm down. Under your bellowing—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt, please resume your seat and, once again, please address your responses to me. I asked you—and I didn't explain this fully and my apologies if I didn't. In the spirit of goodwill, if it upset Senator Rennick, as it appears to have done, I'm inviting you to withdraw.

James McGrath (Queensland, Liberal National Party, Shadow Assistant Minister to the Leader of the Opposition) Share this | Link to this | Hansard source

I withdraw.

Sue Lines (President) Share this | Link to this | Hansard source

And Senator Watt?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I withdraw.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

And, under Senator McGrath's bellowing, I was actually saying that I was withdrawing.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Watt, I'm going to ask you to sit down again. That is very unhelpful. When I ask senators to with—

Bridget McKenzie (Victoria, National Party, Shadow Minister for Infrastructure, Transport and Regional Development) Share this | Link to this | Hansard source

Kick him out!

Sue Lines (President) Share this | Link to this | Hansard source

Order! And that is unhelpful as well, Senator McKenzie! When I ask senators to withdraw, I ask them to just withdraw without adding any other comments, and I'm going to invite you to do that.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I withdraw.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you.

An honourable senator interjecting—

Whoever did that calling out then, that also was very unhelpful and disrespectful. If I ask a senator to withdraw in this place, I'm doing it—

Honourable senators interjecting—

Order! Order across the chamber! When senators are asked to withdraw, it is a serious matter and it should be treated that way. Minister, please continue.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

As I was saying, from July our changes to the childcare subsidy will boost the maximum subsidy rate to 90 per cent for families earning $80,000 or less. We're also boosting the subsidy rates for around 96 per cent of families with a child in care who are earning under $530,000. Our changes will also introduce a base level of 36 subsidised hours of early learning per fortnight for First Nations children. First Nations children will have access to the base level of subsidised hours regardless of their family activities.

These changes will deliver more affordable early childhood education and care for around 1.2 million families, including 265,000 in rural and regional Australia. Our reforms will help more children access the powerful benefits of early childhood education and provide real cost-of-living relief for families. We're making these changes because we know that investing in early education is good for children, it's good for families and it's good for the country.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Green, first supplementary?

Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Affordable early learning pays a triple dividend: it's good for children, it's good for families and it's good for the economy. But the evidence also shows that some groups in the community benefit from investments in early learning. Can the minister advise of any specific groups that will benefit from the changes to the childcare subsidy that will come into effect in July this year?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you again, Senator Green. I'm pleased to say that over 1.2 million families in Australia will benefit from the changes to the childcare subsidy. But I do want to take the time to draw attention to two groups that we know will particularly benefit from the changes, the first being Australian women, who we know are often primary carers. We know that the high costs for early learning act as a massive disincentive for women to get back into the workforce, and our changes will give Australian women more choice. Having more women in the workforce will make a real difference for our economy, as well as empowering them and making a difference to families.

The second group that will benefit from this in particular are First Nations children and families. Our changes will introduce a base level of 36 subsidised hours of early learning per fortnight for First Nations children, regardless of activity. This will build on our government's commitment to closing the gap and ensure that First Nations children get the best start in life. As many as 6,000 First Nations families will benefit from these changes, in addition to the many other Australian families who will too. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Green, second supplementary?

Nita Green (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Minister. Making early learning more affordable for families is a vital reform providing immediate cost-of-living relief to families, but affordability is just one part of the government's agenda. Minister, what other actions is the Albanese Labor government taking to build a world-class, flexible early education system?

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

Thank you again, Senator Green. I'm pleased to say the Albanese government is also looking to the future, taking action to build an early education system that is fit for purpose—one that will ensure all children have access to the transformational benefits of high-quality early learning, a system that support parents and provide them with more choice. We have tasked the Australian Competition and Consumer Commission with inquiring into the drivers of costs in the system, and we've commissioned a comprehensive review, also to be undertaken by the Productivity Commission. These reviews will help our government navigate the path to building a more sustainable early childhood education system.

We are also investing in the early childhood education workforce, recognising the critical role they play in children's lives. As part of this year's budget, we have invested $72.4 million in a workforce package focused on access to professional development and upskilling. Our government values early education, we value the people who work in early education, and we're investing in making early learning more affordable while building a world-class system. (Time expired)

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I ask that further questions be placed on the Notice Paper.