Early childhood education should be made free for more families and subsidies increased according to the Productivity Commission. At Labor’s request, it has assessed ways to improve access to childcare and drafted a 10-year plan. The government's considering whether to adopt it as a pitch at the next election.
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00:00Early childhood education and care benefits children and parents.
00:07It facilitated my return to work so it was hugely important for that.
00:11I love work and I love spending time with family so it is about flexibility.
00:15Socialisation for him.
00:17The Federal Government aspires to provide universal access to childcare.
00:22It's children from the most disadvantaged families that are the most likely to benefit
00:28from early education and care and the least likely to access it today.
00:34But who pays and how much?
00:37In a hefty report, the Productivity Commission recommends free childcare
00:42for families earning less than $80,000 a year
00:45and free care for second and subsequent children for families earning less than $140,000.
00:52The subsidy would taper down, cutting out at a family income of $580,000 a year.
00:59And crucially, it recommends scrapping the activity test
01:04so the subsidy would be the same regardless of whether parents worked full-time, part-time or not at all.
01:10The road map that's been set out is a fabulous picture for the future.
01:15Changing the subsidies would cost an extra $5 billion a year
01:20plus more for improving quality, inclusivity and access in regional and remote areas.
01:26We're not responding to the recommendations in the report today.
01:29We're releasing it because we want to hear what Australia thinks of this report.
01:33The Coalition's working through those recommendations and we will respond in due course.
01:38The report advised against a universal flat fee
01:41or Labor's idea of a 90% subsidy for all, saying that would largely help well-off families.
01:48Labor's not making any commitments yet.
01:51But having promised to improve access to childcare
01:54and seeing an opportunity for a clear policy differentiation with the Coalition,
01:59a pre-election pitch to parents is sure to come.