Low-income families should have access to free, fully subsidised childcare, according to a landmark report that details a pathway to give all children access to early education for at least three days a week.
The report by the Productivity Commission has recommended the federal government increase the Child Care Subsidy (CCS) to 100 per cent for single-child families earning up to $80,000 – about a third of all households with a young child.
It also calls for the same rate for the Higher Child Care Subsidy (HCCS) for families on $140,000 or less who have multiple kids.
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Both subsidies should taper off by 1 per cent for every extra $5000 those families earn, and should be accompanied by scrapping the activity test, which links subsidy rates to how much parents work, study and volunteer.
“A child’s entitlement to at least three days of ECEC a week should not depend on how much their parents work,” Associate Commissioner Deborah Brennan said.
The Productivity Commission said almost every family currently accessing childcare subsidies would benefit from the changes – half would become eligible for 90 per cent subsidies, and about 80 per cent for a 75 per cent subsidy.
About 1.5 million children from a little over 1 million families were in Child Care Subsidy-approved childcare as of March, according to Department of Education data. That figure would rise if the subsidy changes are adopted.
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”Attendance… is expected to rise by 10 per cent,” due to those higher subsidies, the Productivity Commission said, mainly from low- and middle-income families.
Also among the report’s 56 recommendations is a call for more support for childcare workers through quicker qualification pathways and more uniform registration requirements.
“We will not make any progress towards a universal system without addressing the sector’s workforce challenges,” Commissioner Martin Stokie said.
“Improving pay and conditions is critical but more can be done to improve career and qualification pathways.”
Education Minister Jason Clare said the government would consider the report before committing to any of the recommendations.
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