A Path to Universal Early Childhood Education and Care: The Productivity Commission’s Inquiry Report

The Centre has welcomed the release of the Productivity Commission’s inquiry report, A path to universal early childhood education and care (ECEC).  

This report is the final in a series of inquiries the Productivity Commission (PC) undertook examining the state of ECEC in Australia.  

The Commissioners have made several recommendations to create a universal ECEC system, with clear priorities to shape a system which is more affordable, inclusive and of a high quality. 

Affordability

• The report makes a strong case for improving the affordability of ECEC for low-income families. The PC recommends that families earning under $80,000 per year receive the full amount of Child Care Subsidy (CCS) which is 100% of the hourly rate cap. This is a significant change which the commission forecasts would impact 30% of all Australian families with children aged 0–12 years. 

In 2021, the Centre surveyed over 300 Child and Family service practitioners and allied professionals who support children and families to access early years services. Cost was identified as one of the most significant barriers to children and families engaging with ECEC. Nearly 65% of respondents stated that cost was either a significant or very significant barrier for the families that they work with. The following year we surveyed a group of a parents and foster or kinship carers. Nearly half of the parents/carers surveyed reported that costs have made it difficult for them to connect with early years services. 

The PC projects that their recommended changes to tackle affordability will positively impact attendance at ECEC. Attendance is expected to rise by 10%, with most of the increase coming from children from low and middle income families.  

This recommendation will make a difference for the children, parents and carers our sector supports and echoes recommendations the Centre made in our initial submission to the PC.  

Inclusion 

The PC also makes several recommendations to improve inclusion in the ECEC system. 

We can’t go past this call to action: 

“The Australian Government should amend the Disability Standards for Education 2005 (Cth) to cover the whole ECEC sector as soon as possible”. 

At present the Disability Standards for Education 2005 do not cover the entire ECEC sector – only kindergartens and preschools. This needs to be amended so all services, including Child care services, understand their obligations under the Disability Discrimination Act 1992.  This clarity makes it easier for services to understand and comply with these obligations, therefore improving the inclusion of children with disabilities.  

Evidence suggests children with a disability are disproportionately excluded from education. ECEC is education and these standards should reflect the rights of our youngest learners to a quality education. 

The evidence is clear – access to high-quality ECEC improves children’s life chances. This is particularly the case for children who experience disadvantage. The PC’s recommendations provide a clear directive to break down many barriers which block access the ECEC. The opportunity to create a more affordable, inclusive and equitable system should not be missed.  

Read the full report here: A path to universal early childhood education and care.

The Centre’s submission to the Productivity Commission regarding ECEC, can be found here. 

We envision a world in which where every child, regardless of postcode, family circumstances, or cultural background, enters school ready to thrive. The Centre’s early years program, Early Start, Bright Future, supports professionals in connecting families with children aged 0-8 years to suitable early years services, focusing on access to two years of kindergarten before formal schooling begins. Subscribe to our monthly newsletter to be informed of sector updates, professional development opportunities, events and more.