Bill
Family Assistance Legislation Amendment (Child Care Subsidy) Bill 2021
passed, as at 2021-08-27. Education, Skills and Employment portfolio.
- Sponsor
- Not recorded
- Portfolio
- Education, Skills and Employment
Recorded stages
- introduced — 2021-06-24
- second reading — 2021-06-24
- second reading — 2021-08-04
- second reading — 2021-08-05
- second reading — 2021-08-05
- committee — 2021-08-05
- third reading — 2021-08-05
- introduced — 2021-08-09
- second reading — 2021-08-09
- second reading — 2021-08-09
- second reading — 2021-08-10
- second reading — 2021-08-12
- second reading — 2021-08-12
- committee — 2021-08-12
- other — 2021-08-12
- other — 2021-08-12
- third reading — 2021-08-12
- other — 2021-08-12
- passed — 2021-08-12
- royal assent — 2021-08-27
Divisions
- The majority voted in favour of *disagreeing* with amendments to the usual [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion, which is "that the bill be read for a second time" - parliamentary jargon for agreeing with the main idea of the bill. This means that the amendments failed. ### Amendment text > *That all words after "That" be omitted with a view to substituting the following words:* > > *"whilst not declining to give the bill a second reading, the House notes that:* > > *(1) most families receive no extra support from the Government's changes to the child care subsidy;* > > *(2) the Government's changes do nothing to stop out of control child care fees;* > > *(3) the workforce participation rate is projected to decline over the forward estimates; and* > > *(4) Australia ranks 37 out of 41 OECD countries for child care affordability".* — 2021-08-05, House of Representatives: affirmative, ayes 44, noes 35
- The majority voted in favour of *disagreeing* with [amendments](https://www.openaustralia.org.au/debates/?id=2021-08-05.18.1) introduced by Fenner MP [Andrew Leigh](https://theyvoteforyou.org.au/people/representatives/fenner/andrew_leigh) (Labor), which means they failed. ### What is the purpose of these amendments? Kingston MP [Amanda Rishworth](https://theyvoteforyou.org.au/people/representatives/kingston/amanda_rishworth) (Labor) [explained that](https://www.openaustralia.org.au/debate/?id=2021-08-05.19.1): > *these amendments have one purpose—that is, to give families relief from childcare fees during COVID-19 lockdowns, when parents are asked to stay at home and not using child care but legally required to pay the full fees.* ### Amendment text > *(1) Clause 2, page 2 (at the end of the table), add:* > >> *5. Schedule 3* | *The day after this Act receives the Royal Assent.* > > *(2) Page 12 (after line 25), at the end of the Bill, add:* > >> *Schedule 3 — Exception to duty to enforce payment of hourly session fees because of stay at home directions etc.* >> >> *A New Tax System (Family Assistance) (Administration) Act 1999* >> >> *1 After subsection 201B(1)* >> >> *Insert:* >> >> *Exception because of stay at home directions etc.* >> >> *(1AA) The provider is not required to take reasonable steps in relation to a session of care provided by the service to the child if the child is not able to attend the session of care because of a law of a State or Territory (e.g. a public health direction) that:* >> >>> *(a) is enacted or made in reponse to the coronavirus known as COVID-19; and* >>> >>> *(b) restricts the ability of persons to:* >>> >>>> *(i) leave their homes; or* >>>> >>>> *(ii) travel a certain distance from their homes.* >>>> >>>> *Note: A defendant bears an evidential burden in relation to the matters mentioned in this subsection: see subsection 13.3(3) of the Criminal Code and section 96 of the Regulatory Powers Act.* >> >> *2 After paragraph 201C(1)(a — 2021-08-05, House of Representatives: affirmative, ayes 42, noes 37
- The same number of senators voted for and against an amendment to the usual [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion "that the bill be read for a second time," which is parliamentary jargon for agreeing with the main idea of the bill. This means that the amendment failed. ### Amendment text > *At the end of the motion, add ", but the Senate notes that:* > > *(a) most families receive no extra support from the government's changes to the child care subsidy;* > > *(b) the government's changes do nothing to stop out of control child care fees;* > > *(c) passage of the bill will allow the Minister to bring forward the commencement of the changes; and* > > *(d) the government should deliver extra support to families as soon as possible".* — 2021-08-12, Senate: negative, ayes 15, noes 15
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2021-08-12.19.1) to the usual [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion "*that the bill be read for a second time*," which is parliamentary jargon for agreeing with the main idea of the bill. This means that the amendment failed. ### Motion text > *At the end of the motion, add ", but the Senate notes that:* > > *(a) childcare is an essential public service that should be free and universally accessible for all children; and* > > *(b) workers and educators in the childcare sector deserve higher wages and better conditions to reflect the value of their enormous contribution to our community"* — 2021-08-12, Senate: negative, ayes 5, noes 25
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2021-08-12.21.1) to the usual [second reading](https://peo.gov.au/understand-our-parliament/how-parliament-works/bills-and-laws/making-a-law-in-the-australian-parliament/) motion "*that the bill be read for a second time*," which is parliamentary jargon for agreeing with the main idea of the bill. This means that the amendment failed. ### Motion text > *At the end of the motion, add ", and the Senate calls on the Government to acknowledge that:* > > *(a) it has a duty of care to avoid the harmful impacts of climate change on Australia's children; and* > > *(b) in light of the latest IPCC report, supporting new and expanded coal, oil and gas projects is negligent dereliction of that duty".* — 2021-08-12, Senate: negative, ayes 5, noes 23
- The majority voted against an [amendment](https://www.openaustralia.org.au/senate/?gid=2021-08-12.61.1) introduced by NSW Senator [Mehreen Faruqi](https://theyvoteforyou.org.au/people/senate/nsw/mehreen_faruqi) (Greens), which means it failed. ### What would the amendment do? Senator Faruqi [explained that](https://www.openaustralia.org.au/senate/?gid=2021-08-12.61.1) the amendment would bring "*forward the start date of the package by one year to 1 July 2021 ... There is no good reason why the government couldn't prioritise getting more money into the pockets of families who continue to be slugged with some of the highest childcare fees in the world.*" WA Senator [Linda Reynolds](https://theyvoteforyou.org.au/people/senate/wa/linda_reynolds) (Liberal) [explained that](https://www.openaustralia.org.au/senate/?gid=2021-08-12.62.1) "*the government will not be supporting this amendment ... [because it] does require significant system and software changes, for not just Services Australia but also third-party software providers, because of the interface with thousands of childcare providers.*" — 2021-08-12, Senate: negative, ayes 5, noes 25
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2021-06-24.
The bill would change how much child care subsidy some families can get.
It would remove the yearly cap on the subsidy for higher-income families and increase the subsidy rate for families with multiple children under six.
The higher rate for second and subsequent children under six would be 30 percentage points more, up to a maximum of 95%, starting from 11 July 2022 or earlier if proclaimed.
- Removes the annual limit on child care subsidy for families above a specified income.
- Increases the child care subsidy rate by 30 percentage points for second and subsequent children under six, up to 95%.
- Applies the increased rate from 11 July 2022 or an earlier date set by proclamation.
Australian families eligible for child care subsidy, especially those with multiple children under six.
Sources
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