PRODUCTIVITY COMMISSION FINDS $10-A-DAY CHILDCARE BEST WAY TO GIVE MORE CHILDREN ACCESS TO EARLY LEARNING
18 September 2024 – Today’s long-awaited Productivity Commission report into Australia’s early childhood education and care system backs campaigners’ vision of a universally accessible and affordable system.
The report found a $10-a-day cap on childcare fees would result in 61,900 more children getting the benefits of early years education, and 7,300 more parents entering the workforce.
Minderoo Foundation’s Thrive by Five campaign, which includes more than 100 organisations, has been calling for fixed fees and a legislated entitlement to early childhood education.
Minderoo’s Jay Weatherill said the Productivity Commission report made it clear the Government needed to make bold reforms.
“The Productivity Commission has backed our vision of making three days a week of childcare and early learning accessible and affordable to any family who wants it,” Mr Weatherill said.
“To guarantee access for all families, we are calling on the Government to legally enshrine an entitlement to early learning, and introduce a $10-a-day cap on out-of-pocket fees.
“Without this, the cost to parents will continue to skyrocket, and too many children and families will continue to miss out.
“The report makes it clear that the Government needs to fundamentally re-shape the system. Tinkering around the edges will not deliver the kinds of changes we need to make early learning universally accessible and affordable.
“Like last year’s increase to the childcare subsidy, which was a positive step, but the savings parents initially saw have been eaten up by fee rises.”
The average family with two children in early learning spends 16 per cent of their income on fees [1].
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 [2].
Childcare affordability and access challenges have led to Australia having some of the highest rates of women working part-time, among comparable countries [3].
“The Prime Minister says he wants to work towards a universally accessible early childhood education system. That is, a system that all families can access, no matter where they live and no matter what they earn,” Mr Weatherill said.
“Without a legislated guarantee we will continue to see children from marginalised backgrounds miss out on the life-changing benefits of early learning and families continue to struggle with the cost of living.”
The Productivity Commission recommends the abolition of the “activity test”, which determines childcare subsidy eligibility based on how much parents work.
The test has been found to disadvantage single mothers, First Nations families and families on low incomes.
“The Government’s decision to fund a wage increase for early childhood educators was the first vital step towards building a universal early learning system,” Mr Weatherill said.
“Abolishing the punitive activity test, as the Productivity Commission and many others have recommended, is the next immediate step.”
Thrive by Five also welcomes the Commission’s recommendations of new targets for service quality, and to increase the proportion of children who are developmentally on track.
“Early childhood education services set children up for life, so it is great to see high aspirations for quality and outcomes,” Mr Weatherill said.
[1] ACCC – Final Report – Review of childcare policy
[2] Victoria University – Mitchell Institute – Childcare Deserts Report
