Google AI


Modern Australian

Productivity Commission charts the costly path to universal early childhood education

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra

Big increases in government spending on child care have been recommended by the Productivity Commission, that would see families earning up to A$80,000 receive a 100% subsidy rate under the Child Care Subsidy (CCS).

This would cover about 30% of families with children aged up to 12 years.

The Higher Child Care Subsidy (HCCS) rate should rise to 100% for families with multiple children aged five and under in early childhood education and incomes up to $140,000, the commission recommends.

It says a taper rate should apply to the subsidies, reducing the rate of subsidy by one percentage point for every $5,000 increase in income.

It also recommends the activity test should be scrapped, declaring young children’s education “should not depend on their parents’ activity”.

The commission released its final report, titled A path to universal early childhood education and care, on Wednesday. The government will respond later. Labor is expected to make further improvements to the system part of its pitch for a second term.

Almost all families using the system “are expected to benefit” from its recommended changes, the commission says.

“Half of families would be eligible for CCS of 90% or more; nearly 80% would be eligible for CCS rates of over 75%.

"Attendance at ECEC [early childhood education and care] is expected to rise by 10%, with most of the increase coming from children from low and middle income families.”

The reforms would increase CCS costs by 37%, to about $17.4 billion annually.

The commission says all families with children aged up to five should be able to have access to at least 30 hours or three days a week of early childhood education for 48 weeks annually.

At present nearly half of one-year-olds attend some form of care, and about 90% of four-year-olds are enrolled in early education. About one in seven children aged five to 12 attend out-of-school-hours care.

The commission says the expansion of early education has boosted workforce participation. In 2023 three in four mothers with children aged up to four were in paid jobs.

But in parts of the country services are scarce, the commission says, and for some families, care may not be affordable or inclusive.

“Children experiencing disadvantage and vulnerability, while most likely to benefit from ECEC, are less likely to attend,” the commission says.

It urges reform be sequenced and a national agreement be concluded between federal, state and territory governments on their roles and responsibilities.

The commission says the path to universal access “will require long-term commitment and investment”.

Governments should work towards expanding access by 2030 for the disadvantaged, particularly in remote, regional and rural areas.

By 2036 all children should have access to at least 30 hours of weekly care.

The commission says as a result of its proposed reforms more children would be developmentally on track when they start school, and labour force participation by parents would be expected to increase.

Education Minister Jason Clare said the government’s already introduced changes had made early childhood education and care more affordable for more than one million families. It had also announced a 15% pay rise for workers and capped fees.

“The report makes clear that more needs to be done to make sure children from poor families , who would benefit the most from high quality early education, are not missing out,” he said.

Crossbencher Zoe Daniel welcomed the report but said, “the timeline isn’t nearly ambitious enough.

"As a critical first step towards a universal system, all children should have access to a minimum of three days of ECEC that is free or at a low set fee like $10 a day.

"This should be a legislated entitlement. Without it being legislated, the cost to parents will continue to skyrocket due to there being no limit on the out-of-pocket fees that providers can charge and too many children and families will continue to miss out on quality ECEC.

"Waiting until 2036 is too long.”

Volume 1: A path to universal early childhood education and care
A path to universal early childhood education and care Productivity Commission Report

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/productivity-commission-charts-the-costly-path-to-universal-early-childhood-education-239301

Breach of Contract in Business: What Are Your Options?

Contracts are essential to business relationships. They establish expectations, allocate responsibilities and provide a framework for delivering goods...

How Pest Control Companies Can Rank for the Problems Customers Search First

Introduction SEO for Pest Control needs to start with the customer’s problem. Most people do not search for pest services in a neat or technical wa...

What Are the Benefits of Renovating an Older Home in Sydney?

Sydney has plenty of character homes, from Federation cottages to mid-century brick homes. Renovating rather than rebuilding can preserve what makes t...

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Metal Fabrication: Choosing Metal Fabrication Melbourne Services for Custom Projects

What Modern Metal Fabrication Involves From individual components to complete structures, metal fabrication brings together processes such as desig...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Full-Height vs. Pop-Top Caravan: Which Is Better for Family Travel across WA?

A pop-top caravan is an excellent choice for travellers who want the comfort of a caravan without committing to a larger, bulkier setup. With a lowe...

Bottle Label Printing: Key Factors for a Professional Finish

Why the Printing Method Matters When businesses need packaging or printed containers developed for a particular application, the right supplier can m...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...