Dissenting Report
Senator Hanson-Young
1.1
The Government’s decision on budget night to freeze the indexation of
the childcare rebate for four years at the 08/09 level of $7,500, will affect
tens of thousands of Australian families.
1.2
This plan will only save the Government $86.3 million over four years,
yet could cost some parents up to $1000 extra per year.
1.3
While the Greens are supportive of the implementation of a National
Quality Framework for Early Childhood Education and Care, freezing the
indexation of the rebate to help fund some of the initiatives will only
increase the cost of childcare for families across the country. We know that
raising standards will undoubtedly increase costs. We want qualified people
looking after our kids but the Government needs to share the load in ensuring
that childcare remains affordable.
1.4
Although Government Ministers have suggested that only a “few thousand
families” will be affected by this measure, figures obtained by the Department
of Education, Employment and Workplace Relations prove that there will be a
much broader impact across the board.
Families affected:
2010/11 – 26,000
2011/12 – 38,800
2012/13 – 54,500
2013/14 – 72,500
1.5
The Greens want to see a greater investment in early childhood
education, and that means ensuring that parents are not the ones footing the
bill of the government’s agenda. Evidence suggests that the daily fees of
long-day care have increased with the introduction and expansion of the Rebate.
This has not proven to be a cost effective model for parents, nor has it
increased the quality of care.
1.6
We want to see a long-term commitment to review, and change the current
funding mechanism to one which would fund the service directly, would give the
Federal Government more “bang for their buck”, directly linking funding to
quality outcomes.
1.7
What we need to see is money going directly to funding the provision of
quality childcare services, ensuring that what is undoubtedly an essential
service is accessible and affordable for families.
1.8
As part of their 2007 election campaign, the ALP released their plan for
childcare, stating: “In office, Federal Labor will fast-track the introduction
of the Child Care Management System with the goal, subject to the development
of delivery mechanisms, of paying the rebate to parents every fortnight at the
same time as their child care benefit”.
1.9
The Greens want to see the rebate be made available to parents on a
fortnightly basis, in line with other family assistance payments. This would at
least ease the burden on families, who will undoubtedly experience a rise in
childcare costs over the four year period that indexation is frozen, and when
the new quality framework is expected to be rolled out across the country.
Recommendation 1
1.10
The Greens will be seeking to amend the Family Assistance Legislation
Amendment (Child Care Budget Measures) Bill 2010, to make the childcare rebate
payable on a fortnightly basis.
If the Government refuses to stand by their own 2007
election promise, to ease the financial burden on parents, then the Greens will
not be supporting the plan to freeze the rebate at $7500 for the next four
years, during which the National Quality Framework is also expected to roll
out.
Senator Hanson-Young
Greens Spokesperson for Early Childhood Education
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