‘Fiction’: Scott Morrison slams Anthony Albanese on childcare

Anthony Albanese has set up a clash with Scott Morrison to win suburban families votes, after the PM slammed Labor’s $6.2bn childcare-subsidy policy as ‘fiction’.

Prime Minister Scott Morrison and Opposition leader Anthony Albanese in Question Time. Picture: Sean Davey

Anthony Albanese has set up a clash with Scott Morrison to win the votes of suburban families, after the Prime Minister slammed Labor’s $6.2bn childcare-subsidy policy as “fiction” and warned it would benefit the top 10 per cent of earners.

Mr Morrison on Friday criticised the centrepiece policy of Mr Albanese’s first budget-in-reply speech and accused the Opposition Leader of increasing debt and deficit “with no indication” of how he would fund lower childcare costs for up to 97 per cent of all families.

“What I do know is that someone who is in the top 10 per cent of income-earning in this country are the big beneficiaries of that plan. When we announced our childcare changes, it was focused on those low- and middle-income earners,” Mr Morrison said.

“That’s where all the money was spent. That’s where the majority of the $9bn goes under our plan, to support those low- and middle-income earners.”

The political clash over Mr Albanese’s proposed changes to the childcare system, with an aspiration of implementing a 90 per cent subsidy for all families, represents a shift in Labor’s class war rhetoric which dominated Bill Shorten’s reign as leader.

Mr Albanese said “we make no apologies for the fact that this is not a welfare measure”, defending his plan to increase childcare subsidy rates and taper them for families earning up to $530,000.

“If you’re a family, and you’re a woman who’s married to a man who’s earning $250,000 a year, why should the system say that you shouldn’t be able to participate in the workforce? That’s not fair,” Mr Albanese said.

“What is also the case is that people currently miss out. You don’t have to be wealthy. If you’re a police officer, married to a teacher, then you’re losing money. And you’re discouraged from working full-time.”

Under Labor’s childcare plan, initially funded over four years, most families will save between $600 and $2900 a year.

The government said under Labor’s plan, a couple earning $360,000 with two children in care for 30 hours a week would receive an extra $212.16 a week compared with $32.45 a week for a couple with two children earning $70,000.

 

If Labor implemented a 90 per cent universal subsidy, the government believes it would cost taxpayers $29,950 a year for a child in care for 50 hours a week.

Education Minister Dan Tehan said Labor’s plan would “put more money in the pockets of families earning $500,000 than families earning $70,000”.

“Families pay taxes as well and under Labor’s plan a family in Townsville will be subsiding the childcare fees of a millionaire living in Sydney,” he said.

Finance Minister Mathias Cormann said under the Coalition’s childcare subsidy scheme, the gender pay gap had reached its lowest on record and workforce participation by wom­en was at its highest ever.

Mr Tehan said Coalition reforms to childcare subsidies were “working”.

“Our system … helps and supports those that earn the least to get access to affordable childcare,” Mr Tehan said.

“And it’s worked: 72 per cent pay no more than $5 per hour in daycare, and for 24 per cent it’s no more than $2 an hour. So, we have targeted our support to help those who earn the least.”

Health Services Union national president Gerard Hayes warned Mr Albanese to not choose childcare over aged care at the next election.

Mr Hayes, who has threatened to run grassroots marginal seat campaigns targeting both major parties if they fail to fix the aged- care sector, said it was time for Labor to stop being the “nightwatchman on aged care”.

“We need commitments now,” he said.