A plan to transform Australia’s childcare has been revealed. These are the key takeways

Tyler Mitchell By Tyler Mitchell Sep18,2024

All children should have access to high-quality childhood education services for at least three days a week, and to achieve this, the federal government must tackle affordability challenges, the Productivity Commission found in a final report published on Wednesday.

What are the key recommendations?

The report recommended the government completely subsidise childcare for families with incomes up to $80,000 — which encompasses about one in three families with children under 12.
It also suggested families making less than $140,000 who have multiple children under the age of five should also have their childcare costs completely covered.
The Child Care Subsidy activity tests — which determine a family’s allowance based on parents’ paid or unpaid work — should also be completely scrapped as children’s participation in early childhood education should not depend on their parents, the report found.

If these changes are implemented, at least half of Australian families would benefit and early childhood education attendance would increase by 10 per cent thanks to improved participation from low and middle-income families.

Early Childhood Education Minister Anne Aly said the report would help build a system Australia’s children deserve.

“All children should be able to access the transformational benefits of quality, early childhood education and care, no matter their background or postcode,” she said.

Addressing workforce shortages

To improve the availability of childcare, the Productivity Commission also recommends the government address the sector’s workforce shortages through accelerated qualification pathways.

The report comes after the federal government introduced laws on Thursday to increase the wages of childcare workers by 15 per cent over two years in a bid to attract more people to the sector.

Prime Minister Anthony Albanese said previously the wage increase was a first step towards a possible universal childcare scheme.

Higher childcare attendance allowed more parents to return to the workforce and state governments should also provide outside-of-school hours care for children in public primary schools, the report says.

What happens next?

The federal government will consider the report and consult with the childcare sector before announcing any plans for how universal care would be implemented.

The commission recommends an independent body be established to support, advise and monitor governments’ progress.

Tyler Mitchell

By Tyler Mitchell

Tyler is a renowned journalist with years of experience covering a wide range of topics including politics, entertainment, and technology. His insightful analysis and compelling storytelling have made him a trusted source for breaking news and expert commentary.

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