PM asked why families earning $189,000 aren’t eligible for more child care help

Scott Morrison’s comment about miners who earn $180k not being “rich” have come back to bite him in the latest political brawl.

Scott Morrison has accused Labor leader Anthony Albanese of “reheating” the politics of class warfare over whether or not people earning over $180,000 are rich and deserve childcare rebates.

The brawl follows the Prime Minister’s observation last week that hardworking mining workers in Queensland who earned over $180,000 a year still deserved a tax cut and shouldn’t be lumped in with “Sydney merchant bankers”.

Labor had hinted it may repeal or reduce tax cuts for high income earners if it wins the next election but it’s a different story when it comes to childcare rebates.

In the latest political brawl over who is rich the tables have turned, with Labor attacking the Morrison Government’s decision to ban the rich from claiming childcare fee relief.

Instead, Labor leader Anthony Albanese is arguing more high income earners should secure childcare fee relief, arguing it’s an economic measure to encourage more women back to work, not welfare.

In parliament, Labor’s childcare spokeswoman Amanda Rishworth asked the Prime Minister why childcare fee relief is now banned for high income earners.

“Under the childcare scheme, the Prime Minister personally designed, the subsidy is capped for families with a combined income of more than $189,000,’’ she said.

“Why does the Prime Minister consider families with a combined income of over $189,000 rich?”

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Prime Minister Scott Morrison was asked why families earning $189,000 aren’t considered worth helping with childcare costs. Picture: NCA NewsWire / Gary Ramage

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In response, Mr Morrison accused Labor of reigniting old class warfare arguments.

“The reheat of the former Leader of the Opposition’s rhetoric in this case, seeking to cause class war again is no surprise,’’ he said.

“Our government has always believed that when you are applying support across the community, that measures should be means tested. We targeted those who need it most, and that is low and middle incomes, and that is where our childcare support, which runs to $9.2 billion per year, is designed to help.”

Mr Morrison said Labor should come clean on whether or not it will repeal the tax cuts for high income earners.

“This leader of the Labour Party, just like the last one can’t wait to get his hands on their money by taking away their tax cuts,’’ he said.

Labor has seized on research that reveals if the “secondary income earner” – usually the mother – goes back to work for the fourth or fifth day in the week, they lose money because of the childcare scheme system.

But according to the Coalition, 72 per cent of families pay no more than $5 an hour and day care centres.

One in four of that group pay no more than $2 an hour. But under Labor’s proposal, the Coalition argues a family on $1 million with two children in childcare for 30 hours care a week would secure $28,000 a year from the taxpayer.