Submission to the Productivity Commission Inquiry into Early Childhood Education and Care

Submission to the Productivity Commission Inquiry into Early Childhood Education and Care

Our Early Childhood Development Program recently made a submission to the Productivity Commission’s Inquiry into Early Education & Care that articulates the need for a high-quality universal Early Childhood Education & Care (ECEC) and recommends the government shift its focus from being simple provision of a service that can be provided by the market to system stewards.

The shift would require governments to move away from just determining who is eligible for public support and the amount they should receive. Instead, ECEC should be regarded as an entitlement and a central part of Australia’s social contract, much like schooling and healthcare.

The submission identifies that the current system doesn’t serve as an appropriate foundation for a universal system. The reasons for this are interconnected, including issues related to governance, quality, access, affordability, siloing from other services, data, and workforce.

READ THE PAPER [PDF]

The submission recommends a number of reforms concerning governance, funding, and delivery. These need to be considered in the context of a connected, holistic early childhood development system.

It argues that universal ECEC would act as the backbone connecting other system elements. Joint state-federal vision, stewardship, and accountability are critical, ensuring that public investments yield returns for children, families, and the nation at large.

Workforce support is noted as a critical enabler for the quality, operation, and reform of the system. This support would involve a comprehensive, whole-of-career approach. It includes higher wages and a system of support that spans the entire career pathway, starting from attracting people into training to supporting upskilling and leadership development.

The submission also stresses the need to redesign the funding system. This overhaul would ensure the delivery of quality services, improve equity, provide simplicity for families, and prevent price inflation as a response to subsidisation. An example of a successful model mentioned in the submission is Quebec’s universal, fixed fee system. Initially priced at $5 per day, now $8.70, it has become incredibly popular with families due to its simplicity, reliability, and guaranteed price.

Additionally, the submission calls for extra support in thin markets to bolster service viability. This could include capital investment. It further suggests that services be part of place-based initiatives that address wider child, family, and community needs.

The submission envisions a long-term aim of a universal ECEC system. This system would provide guaranteed, high-quality ECEC at free or low costs to children and families. It would also act as an entry point to the broader early childhood service system, bringing tangible benefits to all Australian families.

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