Nothing but smoke and mirrors and no solutions for working families

The Hon. Angus Taylor MP
Shadow Treasurer
Federal Member for Hume

Angie Bell MP
Shadow Minister for Education
Liberal Senator for Victoria

Angie Bell MP
Shadow Minister for Early Childhood Education
Shadow Minister for Youth
Federal Member for Moncrieff

JOINT MEDIA RELEASE

Nothing but smoke and mirrors and no solutions for working families

11 December 2024

The Albanese Government has rehashed a failed childcare policy in a desperate pitch to lure votes ahead of next year’s election.

After nearly three years and two reviews – today’s announcement shows the government has run out of ideas and given failed Rudd-era reforms a new coat of paint in a bid to fool Australians.

In 2007, Labor promised to deliver 260 childcare services on school sites and community land across the country. It discontinued the program after only funding 38.

Today’s announcement of a three-day guarantee also fails to address fundamental questions of access, affordability, or quality. Removing the activity test benefits a small number of families, at the expense of hundreds of millions of dollars to the taxpayer.

Shadow Minister for Early Childhood Education, Angie Bell, said Labor’s announcement reeked of desperation and is an attack on working families.

“At a time when working families are already struggling under Labor’s cost-of-living crisis, this policy will increase demand in a sector that is already at capacity, including in many parts of Australia where there are little or no child care facilities,” Ms Bell said.

“The activity test simply requires parents to be working, training or studying in order to access government support for childcare.

“Various activity test exemptions are already in place, including for vulnerable children.”

With Australia’s budgets under growing pressure, means-testing ensures taxpayers money is spent where it is most needed.

It plays an important role in maximising workforce participation by ensuring the childcare subsidy is available for parents who rely on early childhood education while they work, train or study.

Shadow Minister for Education Sarah Henderson said Australians should be wary of yet another Labor policy, short on detail.

“The Coalition supports an early childhood education system which is responsible, measured and provides support to families who need it most,” Senator Henderson said.

“The former Coalition government undertook the biggest reforms in over 40 years, locked in ongoing funding for preschools and kindergartens, and increased access for more than 280,000 children.

“Today’s announcement is just more smoke and mirrors from Labor.”

For a working household, the cost of living has risen 18.9 per cent since the last election, with families juggling increasing mortgage payments, rising rents, and higher childcare fees. Out-of-pocket costs for childcare have increased 10.7 per cent in just 12 months.

Shadow Treasurer Angus Taylor said Australia is on the wrong track under Labor’s failed economic management.

“Australia needs solutions to our collapsing economy, not more subsidies and more big government.

“Families are already struggling to access childcare. This risks making the situation worse.

“Taxpayers are footing the bill for a policy that will just make it harder for working families that meet the activity test to access care.”

[ENDS]