Opposition Leader Anthony Albanese says the cap on the Child Care Subsidy should be scrapped, and has pledged that a Labor government would investigate a long-term plan that could see no family pay more than 10 per cent of their childcare costs.
The Labor leader has used his Budget reply speech to promise a $6.2 billion plan to remove the subsidy cap, which currently limits annual Child Care Subsidy (CCS) payments to $10,560 for families earning more than $189,390 per year.
Mr Albanese said the current system held back women from working full time, as they had to pay more in order to work after reaching the cap.
"For millions of working women, it's simply not worth working more than three days a week," he said.
"Building a childcare system that works for families will turbocharge productivity and get Australia working again."
The cap removal, which would come into effect from July 2022 if Labor wins the next election, will benefit families on higher incomes.
But Labor will also increase the maximum CCS rate from 85 to 90 per cent, meaning families earning less than $80,000 in 2022 terms would pay 10 per cent of their childcare costs.
Pointing to a "long-term goal", Mr Albanese said a Labor government would task the Productivity Commission with investigating a 90 per cent universal CCS, which would see no family pay more than 10 per cent of their childcare costs.
"This is not a welfare measure. This is economic reform," he said.
Currently, families earning more than $353,680 cannot access any subsidies, but Labor would allow access to the subsidy on a tapered basis to families earning up to $530,000.
Labor says 97 per cent of families would save between $600 and $2,900 per year, and that no family would be worse off.
But Liberal senator Jane Hume said the plan to scrap the subsidy cap and potentially offer universal child care could have negative ramifications.
"If you move to a different model, if you move to make child care universal and free, what you find is perverse outcomes," she said.
"People overbook it, which makes the positions less accessible. By removing the cap, childcare providers cost shift … it's a free for all."
Albanese promises to modernise electricity grid
The Budget reply, Mr Albanese's first since becoming Opposition Leader, also sets out a plan to intervene in Australia's energy infrastructure, to better integrate capacity to transmit renewable energy.
The $20 billion, six-year plan would see a Labor government establish a Rewiring the Nation Corporation, which would be tasked with improving the current grid in line with plans developed by the Australian Energy Market Operator.
"Australia's electricity network was designed for a different century," he said.
"The current network takes no account of the rise of renewables as the cheapest new energy source, and doesn't help link these new sources up to the national grid.
"By using the Commonwealth's ability to borrow at lower interest rates, it will be done at the lowest possible cost."
Mr Albanese said that by making improvements to the grid, thousands of jobs would be created and $40 billion in benefits would flow.
