Childcare should be free for lower-income families and subsidies must be bolstered for the rest if Australia wants to provide universal access, a government advisory body has urged.
Early childhood education and care has significant benefits for children, particularly those from vulnerable or disadvantaged communities, but many are unable to enrol because of cost or availability issues.
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.
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It recommended the government completely subsidise childcare for families with incomes up to $80,000 — which encompasses about one in three families with children younger than 12.
The report also suggested childcare costs be completely covered to families making less than $140,000 who have multiple children younger than five.
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.
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 on Thursday introduced laws to boost 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 previously said the wage boost was a first step towards a possible universal childcare scheme.
Higher attendance of childcare 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.
Centre for Policy Development chief executive Andrew Hudson said the report was a once-in-a-generation opportunity for education reform.
“We know that the benefits of a universal system are immense. Children would get the support they need to thrive into adulthood, parents will be better able to balance work and care, it gets more people back into the workforce,” he said.
“It’s good for children, good for families and good for the economy. It’s a no-brainer.”
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.
