Reforms to early learning ‘crucial’ to ease cost-of-living

Abolishing the Activity Test and funding a wage rise for early childhood educators this Federal Budget are two key reforms that would provide immediate cost-of-living relief for families, and support women’s economic security and safety.

Abolishing the Activity Test and funding a wage rise for early childhood educators this Federal Budget are two key reforms that would provide immediate cost-of-living  relief for families, and support women’s economic security and safety, says The Parenthood. 

CEO, Georgie Dent said that Australia is in the midst of a national crisis when it comes to accessing early childhood education and care – and this impacts children, parents, educators, employers and the economy. 

A national poll of 1200 parents with children under 6 in October 2023 showed that 85% agreed that most households need two parents working to meet the cost of living. 

Yet, new data reiterates that young families are increasingly priced out early learning and childcare. 

“The inaccessibility and unaffordability of early learning and childcare impacts children’s development and parents’ ability to work,” said Ms Dent. 

“Addressing the workforce crisis in early childhood education and care is vital to making early learning more accessible for families. 

“We wholeheartedly support the United Workers Union’s call for a 25 per cent government funded wage rise for educators, who play an absolutely crucial role in shaping the  development of future generations yet are among some of the lowest paid professions in the country. 

Nine out of ten educators are female and earn as little as $23 an hour, less than an apprentice-level bricklayer. 

The Government has announced that a wage rise for educators is expected, following last Monday's confirmation that those studying early childhood education would receive  placement payments.  

“We commend the Prime Minister for demonstrating that his government values women’s’ work as well as the early years. 

The Parenthood is also calling on the Government to reform or remove the Activity Test, the childcare subsidy eligibility system which is estimated to trap 40,000 women out of work and 126,000 children out of early childhood education and care.

“The Activity Test is proven to most negatively impact single mothers, low-income families and First Nations families. It was meant to incentivise work, but in reality, parents who don’t  have a shift or a job cannot afford the out-of-pocket cost for early education and care  because they don’t meet the requirements of the test. At the same time, if they don’t have suitable care lined up, they cannot take a shift or find work. 

“In light of the current epidemic of violence against women, the last thing mothers need are barriers to accessing care for their children. 

Abolishing the test has been recommended by The Government’s Women’s Economic  Equality Taskforce and the Economic Inclusion Advisory Committee, as well as the Productivity Commission and Australian Competition and Consumer Commission. 

“Our two key budget asks represent not only better access to crucial early learning and immediate financial support for families in the current harsh economic climate, but sustainable economic solutions for women on either side of the early learning system – those being educators and mothers alike” said Ms Dent.