$10-A-DAY CHILDCARE: LEADING THINK-TANK REVEALS HOW GOVERNMENT COULD MAKE IT REALITY
12 June 2024 – A new report from the Centre for Policy Development is urging the Federal Government to implement $10-a-day childcare, as fee increases and cost-of-living pressures force some families to go without and leave children behind.
The plan would see childcare centres funded directly, rather than forcing families to navigate the complex childcare subsidy system which results in too many children missing out on vital early years education.
An Australian family on average wages with two kids spends 16 per cent of their total budget on childcare, almost double the OECD average of 9 per cent.
Jay Weatherill, from Minderoo Foundation’s Thrive by Five campaign, said the government should be simplifying the system by offering three days of care per week, capped at $10-a-day and free for low-income families, and enshrining this in law so that no child is disadvantaged.
“The Prime Minister has on many occasions expressed his Government’s intention to make early childhood education universally accessible and affordable,” Mr Weatherill said.
“What we now have is a policy roadmap to make that a reality, and we are urging all parties to heed the call and make it law.”
Significant shortcomings in the current early learning system have been highlighted by the ACCC, Productivity Commission and the Government’s own Economic Inclusion Advisory Committee and Women’s Economic Equality Taskforce.
The system is plagued by complex subsidy and funding arrangements, a shortage of educators and places, and high costs for families. As a result, more than one in five Australian children are starting school developmentally vulnerable.
“Parents are struggling to afford early childhood education, languishing on year-long wait lists, and primary carers – usually women – are having their careers hindered,” Mr Weatherill said.
“While the majority of young families are doing it tough, the system is particularly letting down children from low-income households and Aboriginal and Torres Strait Islander children. It is not a fair or equitable system, and it needs to change.”
The Centre for Policy Development report recommends embedding equity and inclusion though needs-based funding.
“Parents of children with disability and diverse needs often tell us they are turned away again and again by early childhood education providers which cannot meet their needs. This is unacceptable – we need a system which is inclusive and accessible for all Australian children,” Mr Weatherill said.
The report recommends moving from a system primarily based on the Child Care Subsidy, to one where early years education services are funded directly.
“The Child Care Subsidy is horrendously complex for parents to navigate, and it makes it very hard to predict and manage the family budget as circumstances change.
“Funding services directly, and implementing a $10-a-day cap on out-of-pocket fees, would make early years education more affordable and inclusive and provide parents with predictability and simplicity.
“It would also mean the childcare places are not just being created where the money is. The current system incentivises providers to set up shop in wealthy, urban areas, while country towns and low-income suburbs become childcare deserts.
“If the Government is serious about universal early learning, a legislated entitlement to three days of care per week at $10-a-day, and free for low-income families, is the place to start.”
Read the Centre for Policy Development’s new report: Growing Together.
