Dutton opposes childcare cost of living relief for families

Media Release - February 14, 2025

Australian Unions have blasted the Coalition for trying to defeat cost-of-living relief for families paying for childcare.

The Senate last night passed the Government’s bill to guarantee parents a minimum three days of subsidised childcare, helping more than 100,000 families to get more hours of subsidised care.  

The Coalition voted against the Bill on the grounds that it would replace the activity test. The Test has been heavily criticised for creating barriers for young families to access work and care.

Coalition Senators and United Australia Party Senator Ralph Babet, Former Queensland Liberal-turned- Independent Gerard Rennick and One Nation voted against the early childhood education and care cost of living relief.

The Coalition also earlier opposed Government commitments to build 160 urgently needed childcare centres in outer urban and regional Australia. 

The bill’s passing means the next step towards universal childcare will pass into law before the federal election, guaranteeing three days of subsidised childcare fee relief for about 66,700 families and extra hours for more than 100,000 families from January next year.

Families who gain access to additional childcare will save $1,460 a year on average from the measures that apply to families earning between $50,000 and $100,000.

The Coalition has consistently tried to stop parents from getting extra relief from childcare costs, despite a Productivity Commission review recommending the current parents’ activity test be scrapped as it hurts families who need it most without changing workforce participation,

Quotes attributable to ACTU Assistant Secretary, Liam O’Brien:

“Childcare is one of the biggest expenses for a young family.

“Peter Dutton is happy to give bosses long free lunches but refuses to support families struggling with the costs of childcare.

“The Coalition has turned its back on working parents, especially those in outer suburban and regional areas, who need the extra $1,460 in fee relief and access to extra childcare hours.

“Earlier this week Peter Dutton called on the Reserve Bank to resist pressure to prematurely lower interests, now he is opposing extra support for young families to help them get by.  

“Peter Dutton and the Coalition are not interested in helping families make ends meet. If they were they would have voted in support of these measures.

“They did not support pay rises for early educators – calling those a sugar hit – and now they would have stopped childcare fee relief from reaching families.”

The ACTU Network

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