Labor not ‘rushing for the sake of rushing’ to introduce child care subsidy reforms: Husic

A federal minister has explained why the Albanese government is not ‘rushing’ to introduce its landmark promised child care subsidy reforms.

The Albanese government is committed, but not in a rush, to reform childcare in Australia, Industry Minister Ed Husic said on Saturday.

Fielding questions on the morning after the federal government’s jobs and skills summit, Mr Husic was pressed on the timeline for introducing greater child care subsidy rates.

Raising the rate to 90 per cent for a family’s first child in care – a planned $5.4bn investment – was a promise made during the election campaign that Labor has committed to introduce in July next year.

Industry Minister Ed Husic said the government would not be rushed on the child care reforms. (Photo by Martin Ollman/Getty Images)

Some voices, including ACTU president Michele O’Neil, have demanded the package be introduced as soon as January 1.

But Mr Husic said the government wasn’t in a hurry.

“I don’t think we should be rushing (the reforms) for the sake of rushing them,” he said.

“We want these reforms to work, and to make a difference.”

He added there was work to be done alongside “a lot of people, to make them a reality”.

Parents and carers can apply for the child care subsidy to help pay for services such as daycare and outside-school-hours care.

Labor said during the campaign the cost of early learning “is a major cost of living issue for working families and it is locking parents out of the workforce”.

The subsidy rates would increase for all families with a child in care earning less than $530,000 in total yearly income.

The party said the reforms will benefit 96 per cent of families.

The Labor government has made child care reform one of its signature policy plans. Picture: NCA NewsWire / Martin Ollman

The former government attacked the reform package during the campaign, saying an analysis showed Labor hadn’t accounted for the full costs.

“We recognise this is important as a workforce participation measure, that will boost and strengthen the economy,” Mr Husic said.

Proponents of child care reform have framed the matter as a way to make sure more women can participate in the workforce, which would boost the economy overall.

Grattan Institute chief Danielle Wood was one of the voices calling for measures to make sure women participate in the workforce, saying it could help “future proof” the economy.

In her keynote address to the summit on Thursday, she said a commitment to full employment should be the summit’s top priority.

“The Australian economy, like all of us, looks increasingly older, fatter, and slower,” Ms Wood said.

She joked that if women’s participation were iron ore, Australia would “dig it up”.

“Women are often excluded from full-time work, and from the most prestigious high-paid roles, because these so-called ‘greedy jobs’ are incompatible with the load of unpaid care still disproportionately shouldered by women,” Ms Wood said.

“I can’t help but reflect that if untapped women’s workforce participation was a massive ore deposit, we would have governments lining up to give tax concessions to get it out of the ground.”