Mr Murphy asked the Minister for Children and Youth Affairs, upon notice, on 27 November 2003:

(1) Can he confirm that cost pressures in 2004 will force up the cost of child care for full-time care to some $300 per week; if not, why not.

(2) Can he confirm that for a single parent with one child on an after tax income of $400 per week (a) the maximum amount of child care subsidy is approximately $140 per week; (b) an amount of $160 has to be paid by the parent, and (c) child care costs amount to 40% of disposable income; if not, why not.

(3) Can he confirm that many local councils which accepted grants for Child Care Centres under the Child Care Act 1972 now charge fees of up to $25,000 per year to community bodies who operate child care centres and bear the financial burden for operating child care services; if so, why is this acceptable; if not, why not.

(4) Would the cost of child care be reduced if local councils regarded child care centres, for which they have little or no financial responsibility, as a community service rather than a source of revenue; if not, why not.

(5) What action will he take to ensure local councils relieve financial pressure on child care centres so that they can provide affordable child care services to the community.

Mr Anthony (Minister for Children and Youth Affairs) —The answer to the honourable member's question is as follows:

(1) The Government does not control the fees charged by child care services, but provides Child Care Benefit to all eligible families using approved child care.

Actual fee data from FaCS' Census of Child Care Services shows that average Long Day Care Fees in 2003, for 50 hours of care, are $194 per week. These fees have increased by less than one per cent or less than $2 a week, in real terms, from $192.23 in 1999.

(2) (a) Yes - the maximum rate of Child Care Benefit payable for a family with an income below $31 755 or receiving income support is $137 for 50 hours of care.

(b) The amount payable by the parent, after deducting CCB entitlement, will depend on the fees charged by the service.

For 50 hours of care, the average fee for Long Day Care is $194 and for Family Day Care $175. For a family receiving maximum rate of CCB, the average gap fee to be paid is $57 for Long Day Care and $38 for Family Day Care.

(c) The percentage of a family's disposable income spent on child care will depend on their Child Care Benefit entitlement and the fees charged by the service.

While fees represent a decreasing proportion of income as income rises, the effect of Child Care Benefit means that gap fees, on average, represent a similar part of the disposable income of a family, regardless of income. Families with an income of $50 000 pay child care fees of 11 per cent of disposable income for one child in full-time Long Day Care at average fees.

(3) I am not aware of the cases to which the honourable member refers.

The Child Care Act 1972 made available grants to the non-profit sector and local government for centre based child care. These were made under varying agreements with the recipient required to ensure proper acquittal of the funds provided.

Arrangements local councils enter into with child care service providers in their council area is a matter for their agreement.

(4) There is a range of factors that impact on the fees charged by individual services. The Government can not speculate on factors affecting fees in specific local government areas.

(5) The Government spent more than $7 billion on child care in its first 6 years in office. The Government has made a record allocation of around $8 billion over four years (to 2005-06) to support child care.