High-quality early childhood education sets kids up for success, but many miss out due to cost and access. We need universal, high-quality childcare to give every child a fair start in life.
We can judge a country by the way it invests in its children. Whether or not we are parents ourselves, we all share a responsibility to make sure the next generation has the best possible start to life.
What I’ve been hearing from our community is that there are plenty of families where both parents would like to return to work, but don’t – because the second parent’s income would be cancelled out by childcare costs.
The evidence is clear that kids who attend high-quality early childhood education and care (ECEC) are more likely to do well at school, earn higher wages as adults, and raise happier, healthier families themselves.
But right now, too many children in Australia, including in our community, are missing out – because of high costs, limited access, or a system that isn’t designed to support them.
- Almost half of all families have to make significant financial sacrifices to afford childcare. Nearly three-quarters of Australian families say childcare costs are a major barrier to having more children.
- The high cost of childcare forces too many parents out of the workforce. Nationally, 140,000 people cited childcare as the main reason they weren’t able to look for work. Nine out of ten of them are women.
- One in five Australian kids start school behind on key developmental measures. For families who can’t afford early childhood education, or who live in regional areas that are childcare deserts – the number jumps to two in five.
It simply isn’t fair that there are children in our community who aren’t accessing quality childhood education through no fault of their own, and no fault of their parents.
But these challenges don’t just affect children and families – they impact our entire economy. When costly childcare locks parents out of work, we lose valuable skills and productivity slows. Businesses miss out on experienced employees. Our tax base shrinks, and government budgets take a hit as fewer people are able to earn and contribute. Future generations are less engaged at school, less likely to go on to further education, and less able to attract the kinds of jobs and opportunities that allow them to get ahead in life.
We need universal, high quality childcare
The Productivity Commission’s final report, A Path to Universal Early Childhood Education and Care (released September 2024), highlighted a number of issues. It showed that the children and families most likely to benefit from ECEC are the least likely to attend. It also pointed out that the current system of complicated subsidies – where taxpayer funds are too often absorbed into rising prices – isn’t working.
We need a system that guarantees every family access to affordable, high-quality early education, just like we do with schools and Medicare.
Remember how COVID-19 showed us how easily governments can flip a switch and make childcare freely available when it’s needed? We should build on that lesson and make affordable early learning a permanent part of our social and economic infrastructure.
In this term, the Government introduced new measures that will come into effect in 2026, and although welcomed, don’t go far enough and they remain complicated and costly to administer.
That’s why I support the campaigns by Thrive by Five and The Parenthood to introduce a universal childcare guarantee – high-quality early education available to all families, at a fixed price of $10 per day.
It would move us away from means-tested subsidies that are costly, time-consuming, and resource-intensive to administer.
Under this plan
- Every child in Australia will be entitled to early learning costing $10 per day.
- The government will fund childcare directly to ensure prices remain stable, preventing operators from absorbing subsidies into higher fees.
- The government will invest in ensuring adequate childcare centres are available for all children – no matter where they live.
If we can guarantee every child in Australia a seat in a public school between the ages of 5 and 18, we can also guarantee every child in Australia access to early childhood education.
The policy is ready to go. Legislation already exists and has support from key independents. All that’s needed is political will – and enough independent MPs to drive the change.
Phased approach
Transitioning to universal childcare is a big reform, and it must be done right. A phased approach over five to ten years will allow time to build capacity, expand the workforce, and ensure a smooth transition for families, providers, and governments.
Stage 1
- Implement a national entitlement for three days of subsidised early learning.
- Cap fees at reasonable, fixed rates to prevent operators from price-gouging.
- Increase investment in workforce training to ensure enough educators are available.
Stage 2
- Expand infrastructure by co-locating childcare centres within schools and public buildings to address supply gaps.
- Increase incentives for regional and disadvantaged areas, ensuring all communities have access to quality early learning.
- Salary reforms to retain experienced educators and attract new talent into the sector.
Stage 3
- Free universal preschool for 3-4 year-olds for a seamless transition to school.
- Continue workforce investment, with clear progression pathways for early educators.
- Integrate wraparound services, such as health and disability support, into early learning centres.
This sort of staged approach has been recommended by independent think tanks like the Centre for Policy Development and would ensure we are expanding access responsibly, investing in quality, and delivering long-term economic benefits.
Benefits for our kids and the economy
Making early childhood education universal will require significant upfront investment – but the long-term economic returns will far exceed the costs.
How much will it cost?
- Introducing a three-day entitlement is estimated at $1.3-2.3 billion per year.
- Expanding universal preschool access would add $2-3 billion per year.
- Workforce improvements, including salary increases, would cost $1-2 billion annually but are crucial to ensuring sector sustainability.
How does it strengthen the economy?
The Women’s Economic Equality Taskforce estimated that removing barriers to women’s workforce participation could add $128 billion to the Australian economy. Affordable childcare is one of the biggest barriers to achieving this.
- For every $1 invested, Australia will see at least $2 returned through higher workforce participation, increased tax revenue, and reduced welfare spending.
- This is a budget-positive initiative, in that the government would not only receive $2.9-3.2 billion in extra annual tax revenue, but also –
- Save up to $15.2 billion annually on late intervention costs (such as child protection, youth justice, and education support).
How does it improve our wellbeing?
- Children benefit from high-quality early learning, leading to better school performance, higher lifetime earnings, and improved wellbeing.
- Families benefit from lower costs, less financial stress, and more choice in balancing work and caregiving.
- Businesses benefit from a larger, more skilled workforce, reduced employee turnover, and greater productivity.
- The economy benefits from higher workforce participation, increased tax revenue, and long-term social savings.
For decades, politicians have promised childcare reform – but progress has been slow, and solutions have been compromised by party politics. Independent MPs can break the gridlock, push for evidence-based policies, and demand action. The plan is there. The numbers stack up. Now, we just need leadership with the courage to get it done.