A funding model that delivers universal access to quality, culturally safe and inclusive early childhood education and care — for every child, wherever they live.
EducationEarly Childhood Education & Care
Early Childhood Education & Care · The Democrats' planEvery child ready. Not one waiting until 2036.
Australian families pay some of the highest rates in the OECD for childcare, 22% of Australian children start school developmentally vulnerable, and 126,000 children are missing out on early learning because of activity test rules. In September 2024 the Productivity Commission made 56 recommendations to reform early childhood funding — reforms to be rolled out progressively over the next 12 years, with the Federal Government proposing three days a week for every child only by 2036. We would adopt all 56 recommendations and bring that timeframe forward.
126,000 Children missing out on early learning Locked out by activity test rules that require a parent to be working or studying at least 8 hours a fortnight.
22% Start school developmentally vulnerable More than one in five Australian children, on research by the Centre for Policy Development.
2036 When three days a week arrives The Federal Government proposes 3 days a week of childcare for all children by 2036. The Commission's reforms are to be rolled out progressively over 12 years and eventually reach $17.4 billion a year.
56 Productivity Commission recommendations Handed down in September 2024 in "A path to universal early childhood education and care", to reform early childhood funding.
The readiness gauge
Drag toward every child arriving at school ready — and see what it takes.
Figures from the Productivity Commission and Centre for Policy Development, as cited in our platform.
The plan at a glance
Bring early childhood into the education system and lift educators' pay, status and conditions. Melbourne childcare workers average $25.80 an hour, and median sector earnings run under two-thirds of median adult earnings.
Increase investment in services in unserved and under-served communities, particularly in poorer, rural and remote areas — where the children who would benefit most attend least.
Mentoring programs, coaching and counselling for early childhood educators. In NSW, vacancies outstrip applications; retention is as urgent as recruitment.
Overhaul administrative burdens, adopt all the Productivity Commission's recommendations, and bring forward the Federal Government's timeframe for the new ECEC system.
The same child, two different starts
Same child, same street. What changes is what is waiting for them on the first day of school.
Today
- 126,000 children shut out by an activity test on their parents' hours
- Some of the OECD's highest fees, inside complex subsidy and funding arrangements
- Educators averaging $25.80 an hour in Melbourne; in NSW, vacancies outstrip applications
- Poorer, rural and remote communities with no service to attend
Our plan
- Access decided by the child, not a parent's roster — the activity test removed
- Direct base level funding for all providers, supplemented by needs-based and service-based funding
- Early childhood inside the education system: professional pay, status and conditions, plus mentoring and coaching
- Investment directed to unserved and under-served communities
The one change that matters most
Three days a week of early learning for every child — by 2036
Three days a week for every child, at low or no cost — brought forward, not deferred
The Productivity Commission's 56 recommendations adopted in full, and the Federal Government's timeframe pulled forward from a 12-year rollout. The reform is already written — what is left to decide is the date.
The full policy
Word for word — the platform as our members wrote it.
The Issues
Every child deserves the best possible start in life. Where you live and your parent’s cultural heritage should not be a barrier. According to the Productivity Commission: early childhood education and care is critical to the well-being of families. Unfortunately, the children who would benefit the most from access to early childhood education and care are attending less than average or not at all.
Research by the Centre for Policy Development shows Australian families pay some of the highest rates in the OECD for childcare, yet 22% of Australian children start school developmentally vulnerable, and 126,000 children are missing out on early learning due to activity test rules.
There are complex subsidy and funding arrangements, lack of accessibility for many families experiencing disadvantage, a shortage of educators and services, and high costs for parents and families.
Employees in the sector are among the lowest-paid of all professions with median weekly earnings less than two-thirds of median adult earnings. The average pay for childcare workers in Melbourne is $25.80/hour. Attracting and retaining workers in the sector has been a chronic problem. In NSW vacancies outstrip applications.
Cost of living pressures and stagnant wages are impacting the ability to afford care, leading to a ‘catch 22’ of needing to work to live, but not being able to afford the care that will enable parents to go out to work. Women are disproportionately impacted by this.
Our Plan
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A funding model that delivers universal access to quality, culturally safe and inclusive early childhood education and care
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For ECEC to be part of the education system, improving educators’ pay, status and conditions, bringing workers to the sector
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Increase investment in services in unserved and under-served communities, particularly in poorer and rural and remote areas
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Provide mentoring programs, coaching and counselling for early childhood educators
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Overhaul administrative burdens
and:
- Bring forward the Federal Government’s timeframe for the new proposed ECEC system and adopt all the recommendations of the Productivity Commission
The Evidence
The Productivity Commission made 56 recommendations in Sept 2024 to reform early childhood funding A path to universal early childhood education and care. These reforms would substantially increase affordability of and access to childcare however, it will be progressively rolled out over the next 12 years. The measures will increase childcare costs by 37% and eventually reach $17.4 billion/year.
It called for major reforms including ensuring all children have access to a minimum of three days of early childhood education and care per week at low or no cost and replacing current funding arrangements with direct, base level funding for all providers, supplemented by additional needs-based and service-based funding to cover specific costs.
Here is what the Federal Government is proposing:
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All children to get 3 days/week of childcare by 2036(!)
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The maximum rate of the childcare subsidy to be raised from 90% to 100% of the hourly rate cap for families on incomes up to $80,000, making childcare more affordable from 2026 for about 30% of all families with children aged 0 12 years.
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Subsidies to be raised to 100% for families with multiple children under five earning under $140,000, up from the current 95%. (Subsidies were increased in 2023)
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The activity test that requires parent to be working or studying at least 8 hours/fortnight is to be removed
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Funding for remote and very remote areas to be equitable
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Access to childcare subsidy for ‘wrap-around care’ in dedicated preschools is to be available (by 2025)
References
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Growing Together: A future universal early childhood education and care system for Australia
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Early childhood education and care
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Early childhood development
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Science Daily Child Development News
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Australian Early Development Census
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A New Perspective on Early Childhood Development
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A major new childcare report glosses over the issues educators face at work and why they leave
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Giving early childhood educators an extra 15% is good policy, and even better politics
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Free childcare: How we are tackling the cost of childcare
Make it happen.
Policies like this only become law when enough people push. Push with us.