00:00Early childhood education and care benefits children and parents.
00:07It facilitated my return to work so it was hugely important for that.
00:11I love work and I love spending time with family so it is about flexibility.
00:15Socialisation for him.
00:17The Federal Government aspires to provide universal access to childcare.
00:22It's children from the most disadvantaged families that are the most likely to benefit
00:28from early education and care and the least likely to access it today.
00:34But who pays and how much?
00:37In a hefty report, the Productivity Commission recommends free childcare
00:42for families earning less than $80,000 a year
00:45and free care for second and subsequent children for families earning less than $140,000.
00:52The subsidy would taper down, cutting out at a family income of $580,000 a year.
00:59And crucially, it recommends scrapping the activity test
01:04so the subsidy would be the same regardless of whether parents worked full-time, part-time or not at all.
01:10The road map that's been set out is a fabulous picture for the future.
01:15Changing the subsidies would cost an extra $5 billion a year
01:20plus more for improving quality, inclusivity and access in regional and remote areas.
01:26We're not responding to the recommendations in the report today.
01:29We're releasing it because we want to hear what Australia thinks of this report.
01:33The Coalition's working through those recommendations and we will respond in due course.
01:38The report advised against a universal flat fee
01:41or Labor's idea of a 90% subsidy for all, saying that would largely help well-off families.
01:48Labor's not making any commitments yet.
01:51But having promised to improve access to childcare
01:54and seeing an opportunity for a clear policy differentiation with the Coalition,
01:59a pre-election pitch to parents is sure to come.
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