A landmark report from the Productivity Commission today lays out a vision for every child in Australia having access to at least three days a week of high quality, inclusive early childhood education and care regardless of their postcode, parents’ income or background.
The Parenthood backs the PC’s findings and recommendations that recognise myriad reasons the current system is not sufficiently meeting the needs of all children, parents, educators and communities.
“This report recognises what parents know too well: that affordability, accessibility and inclusivity are major issues when it comes to early learning and care,” The Parenthood CEO Georgie Dent says.
“This report makes clear wholesale reform is needed to deliver on the vision for all children to have access to at least three days a week of quality, inclusive, affordable early childhood education and care.”
The Parenthood is amongst groups calling on the government to introduce fixed fees for all families and a legislated entitlement to three days of early learning for all children whose family wants it.
The PC found that a $10-a-day cap on fees would result in 61,900 more children getting the benefits of early years education. Ms Dent said a fee cap was the only way to ensure early education is truly accessible and affordable for all.
“The Productivity Commission report backs our vision of a universal system, where any family can access childcare and early learning, no matter where they live, and no matter what they earn,” Ms Dent said.
“The Prime Minister has said this is his Government’s vision too, and the only way to realise it is by legislating every child’s right to early education and making sure it is genuinely affordable.”
The Productivity Commission report is expected to inform the Government’s early education and care policy going into the election.
Only three in 10 parents who use centre-based early learning say the costs are easily manageable, according to a 2023 poll. The average family with two children in early learning spends 16 per cent of their income on fees.
At the same time, many families struggle to find a place, with 24 per cent of Australia considered a “childcare desert”, where there are at least three children for every available spot.
Childcare affordability and access challenges have led to Australia having some of the highest rates in the world of women working part-time, among comparable countries.
Ms Dent said these problems will not be solved without a mechanism to limit fees and a truly universal system that was accessible and affordable for all.
“If the Government is serious about helping people with the cost of living, serious about giving children the best start in life, serious about gender equity and growing the nation’s productivity – we need a truly universal childcare and early learning system,” she said. In its final report published in February this year the ACCC concluded that the design and implementation of the Child Care Subsidy had “limited effectiveness” in
placing downward pressure on fees.
“Unless the Government caps fees, they are going to keep going up, and the Government will be pouring money into the child care subsidy system without any substantive fee relief for families.”
As a first step, The Parenthood is calling for the immediate abolishment of the “activity test”, which determines eligibility for the child care subsidy based on how much parents work.
“The activity test is locking Australia’s most vulnerable children and families out of the benefits of early learning. It disproportionately impacts single mothers, First Nations families and families in low incomes,” Ms Dent said.
“Inquiry after inquiry has said this unfair test needs to be scrapped, and we are pleased to see the latest report from the Productivity Commission back that up.”
The Parenthood also welcomes the Commission’s recommendations of new targets for service quality, and to increase the proportion of children who are
developmentally on track.
“It is important we have high aspirations for quality and outcomes, given the crucial role early childhood education services play during a pivotal time in children’s lives,” Ms Dent said.
