September 18th 2024.
According to a groundbreaking report, families with low incomes should have access to free and fully subsidised childcare. This report outlines a plan to ensure that all children have the opportunity to attend early education for at least three days a week. The report, conducted by the Productivity Commission, has suggested that the federal government increase the Child Care Subsidy to 100 per cent for families with a single child who earn up to $80,000. This would benefit about a third of households with young children.
The report also proposes that families with multiple children and a household income of $140,000 or less receive the same subsidy rate. However, the subsidies would gradually decrease by 1 per cent for every additional $5000 earned. The report also suggests removing the activity test, which currently determines the amount of subsidy a family receives based on their work, study, and volunteer commitments.
Associate Commissioner Deborah Brennan emphasized the importance of a child's right to at least three days of early education and care, regardless of their parents' work commitments. The changes proposed by the Productivity Commission would benefit almost every family currently receiving childcare subsidies. Half of these families would become eligible for a 90 per cent subsidy, while 80 per cent would receive a 75 per cent subsidy.
As of March, there were about 1.5 million children from just over 1 million families enrolled in Child Care Subsidy-approved childcare, according to data from the Department of Education. If the recommendations in the report are implemented, this number is expected to increase. The Productivity Commission predicts a 10 per cent rise in attendance, mainly from low- and middle-income families, due to the higher subsidies.
The report also includes 56 recommendations, including a call for more support for childcare workers. This would involve streamlining qualification pathways and creating more consistent registration requirements. Commissioner Martin Stokie stressed the importance of addressing workforce challenges in the childcare sector, stating that progress towards a universal system cannot be made without addressing pay and working conditions. He also believes that more can be done to improve career and qualification opportunities for childcare workers.
Education Minister Jason Clare has stated that the government will carefully consider the report before making any commitments to the recommendations. This report marks a significant step towards providing equal access to early education and care for all children, regardless of their family's income.
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