Federal election: Labor says reining in tax concessions will fund fee relief, while Coalition will peg humanitarian intake at 18,750

Labor will unveil a $4bn childcare package to zero in on voter concerns about the cost of living, while the Morrison government will unveil its intention to freeze the humanitarian intake of refugees at 18,750 as the election campaign accelerates into the home stretch.

In a significant Sunday policy announcement, Bill Shorten will promise cheaper childcare for all Australian families earning less than $174,000 and has warned Labor will consider price controls if operators fail to pass savings on to families. Labor says 887,000 families will see fee reductions of up to $2,100 per child off their yearly childcare bill.

While Shorten will focus on the hip pocket, Scott Morrison will inject the politically contentious issue of immigration into the campaign debate for the first time since opening hostilities three weeks ago.

At a rally in Sydney with the former prime minister John Howard and the New South Wales premier, Gladys Berejiklian, Morrison will promise to cap the number of migrants coming to Australia as refugees at 18,750 which builds on the government’s earlier commitment to hold permanent migration at 160,000.

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The prime minister’s intention is to contrast the Coalition’s stance with Labor’s plans to increase Australia’s humanitarian intake from 18,750 to 32,000 over the next few years.

While the humanitarian cohort will be capped, Morrison will say there will be an overall target of 60% of the offshore component reserved for women, while the women-at-risk program as a proportion of the offshore component will be increased from 14% in 2017-18 to an allocation of 20% in 2019-20.

Campaigning in Melbourne, Shorten will focus on families. At a Sunday rally he will promise more assistance for childcare fees, increasing the subsidy rate from 85% to 100% up to the hourly fee cap – which is currently $11.77 per hour for long day care – for families earning up to $69,000 who meet the activity test requirements.

Labor says the practical effect of this is childcare will either be free or the costs will be negligible for up to 372,000 families.

Families earning between $69,000 and $100,000 will receive a subsidy rate between 100% and 85% up to the hourly fee cap, and families earning between $100,000 and $174,000 will receive a subsidy rate between 85% and 60% up to the fee cap, which develops an effective increase of 10%.

Labor is also proposing to task the Australian Competition and Consumer Commission with investigating excessive fee increases by childcare providers. It will also review a recent decline in the number of low-income families accessing the childcare system.

On Sunday Shorten told Channel Seven’s Sunrise the ACCC will “monitor prices” and warned that Labor will “contemplate price controls” if operators engage in rent-seeking and take increased subsidies for higher profits.

“So in other words, before operators can increase fees, they’ve got to get the approval of the government,” he said. “So we want to make sure that the money gets to the pockets of the families.”

In a statement ahead of Sunday’s announcement, Shorten said: “Under the Liberals the cost of childcare has gone up 28%, costing families using long day care $3,000 more a year.

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“Labor will increase the subsidy families receive, we will kickstart the process to limit out-of-control childcare price increases, and we will review the impact of the system on vulnerable and very low-income families.”

Shorten will say Labor’s decision to wind back tax concessions has given sufficient fiscal firepower to boost services most Australians use. “Labor is choosing cost-of-living relief and early education investment, while the Liberals choose bigger tax handouts for the top end of town – paid for by cuts to schools and hospitals.”

In a statement issued ahead of Sunday’s announcement, Morrison echoed Howard’s language in the election of 2001. “We’ve got our borders and the budget under control.

“We make decisions about who comes here based on what’s in Australia’s interests.”

Morrison said pausing immigration allowed the government to get on with infrastructure projects with the objective of easing congestion. “We’re capping and freezing our immigration growth so our government’s record $100bn congestion-busting program for roads and rail can catch up and take the pressure off our cities.”

The prime minister will also highlight infrastructure investments in western Sydney on Sunday. The Coalition is hoping to pick up Lindsay in Sydney’s west, a seat currently held by the ALP.