The Productivity Commission has released a report based on its inquiry into Australia’s early childhood education and care (ECEC) sector, making several recommendations to improve access for families around the country.
The Commission’s inquiry heard from ECEC workers, academics and families in Australia to examine the current childcare system and the barriers parents face that result in children missing out on early childhood education.
Central to the report, which made 56 recommendations, was calling on the Australian government to establish a system where every child in Australia aged 0-5 has access to high-quality ECEC for a minimum of 30 hours a week – or three days a week – for 48 weeks of the year.
Establishing a system based on these recommendations would increase ECEC demand by 10 per cent, predominantly from low and middle income families who are priced out from accessing childcare services. The Commission also said reforming the system would truly incentivise workforce participation and thus boost the economy.
The Australian Government has tabled the final report of PC’s inquiry into early childhood education and care (ECEC).https://t.co/65ZR7HrmCv#EarlyChildhoodEducationAndCare #Childcare #AusEcon
— Productivity Commission (@ozprodcom) September 18, 2024
For years, advocates in the space have been calling for the abolition of the activity test, which assesses the income level of parents to determine if they are eligible for the government childcare subsidy. This is one of the key recommendations in the Productivity Commission’s report.
Associate Commissioner Deborah Brennan said abolishing the activity test would help Australia achieve universal access to ECEC and would especially help disadvantaged families access services.
“Children experiencing vulnerability and disadvantage benefit the most from quality early childhood education and care, but they are currently the least likely to attend,” Commissioner Brennan said.
“A child’s entitlement to at least three days of ECEC a week should not depend on how much their parents work.”
Another principal recommendation of the report is to better support workers in the sector. The Productivity Commission called for the government to provide tailored training options for those entering the ECEC sector for the first time, and to also create better mentoring, professional development and career pathways for those who already work in the sector.
Earlier this year, the Albanese government announced a 15 per cent wage increase for workers in the ECEC sector. But Commissioner Martin Stokie said support for the workforce must go beyond the pay rise.
“We will not make any progress towards a universal system without addressing the sector’s workforce challenges,” Commissioner Stokie said.
“Improving pay and conditions is critical but more can be done to improve career and qualification pathways for ECEC professions.”
The report also calls for further government investment into disadvantaged communities who struggle to access ECEC services, including regional, remote and rural parts of Australia.
Last week, The Parenthood released a report that spotlighted the negative impacts of inaccessible early learning on regional, rural and remote communities. The report found 86 per cent of families from regional, rural and remote communities struggling to access early learning services face financial stress.
Commissioner Lisa Gropp from the Productivity Commission said further government investment is required to meet the needs of these communities.
“Some areas of Australia have few or no early childhood education and care services,” Commissioner Gropp said.
“More funding will be needed to address these persistent service gaps.”
Aboriginal and Torres Strait Islanders are disproportionately blocked from accessing ECEC, something Commissioner Stokie from the Productivity Commission said needs attention from the government.
“Governments and ECEC services also need to do more to achieve the commitments in the Closing the Gap Agreement for Aboriginal and Torres Strait Islander children,” Commissioner Stokie said.
“That means working towards a sustainable funding model for Aboriginal Community Controlled Organisations and investing in the capability of the sector, to make all services culturally safe.”
Earlier this month, the Jobs and Skills early childhood census found there is a shortage of 21,000 ECEC workers: to address this, the study has found that the industry’s workforce would need to grow by 1.5 per cent every year for the next decade to ensure families do not continue to miss out.
Importantly, the Productivity Commission said increasing access to ECEC cannot come at the expense of quality.
Responses
Minister for Education Jason Clare and Minister for Early Childhood Education Anne Aly held a press conference this morning to release the report. The Ministers said the government will review the recommendations and release a response in “the next few months”.
“We share that vision that every child in Australia, no matter who they are, no matter where they live, no matter what their background, has access to early childhood education and care,” Minister Aly said.
“It’s not just about the millions of families that will benefit,” Minister Clare said, “but it’s also about all of us, and the sort of country we can build, the sort of next generation we can build.”
The Centre for Policy Development (CPD) welcomes the Productivity Commission’s report. CEO Andrew Hudson hopes the government will take the recommendations on board to reform the ECEC system.
“We know that the benefits of a universal system are immense,” Hudson said.
“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. It’s good for children, good for families and good for the economy – it’s a no-brainer.”
According to research from the CPD, universal ECEC could generate up to $19 billion annually in tax revenue and savings, and could boost national GDP by $10 billion every year.
The economic benefit of universal access to ECEC, the research found, could result in less health issues, lower crime rates and decreased welfare costs in Australia – in other words, what Hudson calls “a win-win”.
“The Prime Minister, the Treasurer, the Minister for Education – all have reiterated their commitment to building a universal early education system,” Hudson said.
“This is something that can cement their legacy, that we can eventually look back upon as a key part of what it means to be Australian – in the great tradition of universal schooling, superannuation or health care.”