New proposal would see child care cost just $10 per day
In an incredibly promising step towards affordable and high-quality early childhood education, families in Australia could soon benefit from a significant reduction in costs – potentially paying just $10 a day for three days a week of high-quality care.
This development is part of a broader push to reform the current, troubled system, driven by the Centre for Policy Development (CPD) and supported by various early learning and parenting groups.
The CPD has introduced a comprehensive plan aimed at overhauling the existing system, proposing free or low-cost early learning for all children three days a week. A key aspect of their proposal includes replacing the current childcare subsidy with a "child-centred" funding model that directly finances early education centres.
Prime Minister Anthony Albanese has endorsed the initiative, highlighting its significance in the national conversation on childcare, stating, “Universal child care provision, as it is in a range of other countries, is something that is a valued national asset. Early education is good for children, it’s good for families, but it’s also good for our economy.”
Countries like Denmark, Germany, Sweden and Norway have successfully implemented legislated entitlements for early childhood services. Research indicates that where universal or low-cost education is available, participation rates are high, suggesting similar potential outcomes for Australia.
Economic modelling by CPD suggests that universal or low-cost early learning could increase tax revenue by up to $3.2 billion annually and boost economic growth by $6.9 billion as more parents, particularly mothers, are able to work additional hours.
The federal government is awaiting the final report from the Productivity Commission before making further decisions. Preliminary findings from this body and a separate investigation by the Australian Competition and Consumer Commission have identified the current system as complex, costly and inconsistently available across the country.
Andrew Hudson, CEO of the Centre for Policy Development, labelled the existing system as "broken", noting that about 22% of children start school developmentally vulnerable and over 120,000 children miss out on early learning entirely due to stringent activity test rules and other barriers.
Hudson also pointed out that enabling more women to return to the workforce represents the "single biggest productivity gain" for the country, describing the proposal as a "classic win-win".
As momentum builds, this initiative promises a brighter future for Australian families, making high-quality early childhood education more accessible and affordable, while delivering significant economic and social benefits.
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