Cheaper Child Care for Bean families

"I'm proud to be part of the government which is delivering on our election promises and setting up Canberrans and Australians for a better future. This investment means early childhood education will be more affordable for 1.2 million Australian families, and 6,600 families in my electorate of Bean will be better off."

Address to the Federation Chamber, Private Members' Business - Child Care 

Monday 6 February 2023

I move:

That this House:

(1) notes that:

(a) in May 2022 Australians voted for a plan for cheaper child care; and

(b) on 23 November 2022, the Family Assistance Legislation Amendment (Cheaper Child Care) Bill 2022 passed the Parliament;

(2) commends the Government for meeting its election commitment to the Australian people;

(3) further notes that:

(a) the reforms will deliver affordable early education for more than a million families;

(b) from July 2022, approximately 96 per cent of families with a child in early childhood education and care will benefit;

(c) from July 2022, the child care subsidy for families earning $80,000 or less will increase to 90 per cent; and

(d) Treasury modelling shows that this will deliver the equivalent of up to 37,000 workers to the economy in the first year; and

(4) acknowledges that these reforms will deliver real cost-of-living relief while boosting productivity.

On 22 May last year, the people of Australia voted for a plan for cheaper childhood education. By 23 November last year, the parliament approved this plan, and the Family Assistance Legislation Amendment (Cheaper Child Care) Bill 2022 became law.

The Albanese government is getting on with the job of delivering cost-of-living relief for Australian families across the country. From 1 July this year, more than a million families will be able to access more affordable early childhood education.

Over the last eight years, we have seen early childhood education costs increase by 41 per cent, putting pressure on already struggling families and risking the future of our kids' early education. But at the centre of the first Albanese government budget was a $4.5 billion investment in early childhood care. This is not just an education reform; this has material economic benefits for our economy and social benefits for our people.

Last year, 73,000 people who wanted to work didn't look for work. This was because of the prohibitive costs of early childhood education—prohibitive costs that affect constituents in Bean. Parents, especially mums, will now be able to take on more paid work hours. This will have wider benefits for the economy, particularly in its recovery following the disruptions caused by COVID-19. Treasury modelling shows that this will deliver the equivalent of up to 37,000 workers to the economy in its first year alone.

From 1 July this year, the childhood education subsidy for families earning $80,000 or less will increase to 90 per cent. These changes will provide household budget relief for families struggling with the rising cost of living. Further, the measures will contribute to the government's gender equality agenda and support children's school readiness and long-term outcomes by reducing cost barriers to accessing early childhood education and care.

There are 47 early childhood education centres in my electorate of Bean, ranging from the Coombs Early Learning Centre to Jenny Wren in Mawson to the wonderful Wonderschools in Phillip and Conder. It's good to know that mums and dads in my electorate will now be able to send their children to these centres for more hours when they are needed. And let's not forget the children. These reforms will also promote the rights of children and the best interests of children, by increasing access to high-quality early childhood education and care.

This government will work with state and territory education and early childhood education ministers through National Cabinet to develop a long-term vision and collaborate on opportunities to support better outcomes across the system, with a particular focus on the early childhood education and care workforce. Evidence shows that early childhood education and care, when delivered in a quality setting, is a key protective factor and positively relates to children's developmental outcomes. Access to quality early childhood education is known to reduce vulnerability and improve early childhood development.

There's also a plan to ensure that early childhood education will have a steady supply of educators to support its growth. Over 1,400 additional university places for early education teachers, along with additional fee-free TAFE courses, will complement this legislation. Additionally, those applying for working visas in the early education space will be prioritised. This will secure a supply of early educators.

There will also be an increase in hours of subsidised care available for Aboriginal and Torres Strait Islander children. All First Nations children will be able to gain access to 36 hours of subsidised early childhood education. Nationally, this will benefit more than 6,000 First Nations families and represents a positive step in our efforts to close the gap. These reforms also invest $10.2 million to establish the Early Childhood Care and Development Policy Partnership between the Commonwealth and state and territory governments and First Nations representatives.

I'm proud to be part of the government which is delivering on our election promises and setting up Canberrans and Australians for a better future. This investment means early childhood education will be more affordable for 1.2 million Australian families, and 6,600 families in my electorate of Bean will be better off. This will ensure children can access the benefits of early childhood education no matter their circumstances.

This is a big reform that is good for children, good for families, good for our economy and good for early childhood educators who deliver so much for families across Australia.