This article is from the Australian Property Journal archive
A $10-a-day cap on childcare fees would see more than 60,000 further children gain access to early learning and over 7,000 parents able to return to work.
According to the Productivity Commission report into Australia’s early childhood education and care system, the average family with two kids in early learning is currently spending 16% or their income on fees.
While a $10-a-day cap would see 61,900 more children getting crucial early education and 7,300 more parents entering the workforce.
“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,” said Jay Weatherill, CEO of Minderoo Foundation’s Thrive by Five campaign.
The campaign is now calling on the government to legally enshrine an entitlement to early learning and introduce this recommended cap to out-of-pocket fees.
“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,” added Weatherill.
“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.”
Childcare access is a major factor in Australia currently having the third highest gap between men and women who work part-time out of all OECD countries.
While 24% of the country is considered a “childcare desert”, meaning there are at least three children per every available childcare place.
“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,” said Weatherill.
“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.”
A previous Productivity Commission report from 2022 revealed quality standards of childcare centres have fallen in Australia, as spending on early childhood education falls in many states and territories.
The current “activity test” that determines childcare subsidy eligibility has been determined to put single mothers, First Nations families and families on low incomes at a disadvantage.
“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,” added Weatherill.
“Abolishing the punitive activity test, as the Productivity Commission and many others have recommended, is the next immediate step.”
