Wed Sep 18 03:49:00 UTC 2024: ## Free Childcare for Low-Income Families: Productivity Commission Recommends Major Overhaul
**Canberra** – The Productivity Commission has recommended a significant overhaul of Australia’s childcare system, including making childcare free for families earning less than $80,000. The commission’s report, which includes 56 recommendations, aims to make early childhood education and care (ECEC) more accessible, inclusive and affordable for all families.
The key recommendation is to abolish the activity test and increase the childcare subsidy to 100% for low-income families. This would mean families with incomes up to $80,000, or families with children under 5 earning up to $140,000, would receive free childcare.
The commission believes these changes would ensure all children aged 0 to 5 have access to at least 30 hours of ECEC per week, increasing demand by 10% and raising the annual cost of the childcare subsidy from $12 billion to $17.4 billion.
Early Childhood Australia (ECA) has welcomed the recommendations, particularly the removal of the activity test, which they argue prevents disadvantaged children from accessing early childhood services.
Education Minister Jason Clare acknowledged the substantial investment required to implement these recommendations but highlighted the benefits for children currently missing out on early education, including those from low-income families, regional areas, and with additional needs.
The government has committed to reviewing the recommendations and developing a shared vision for universal ECEC. They have already taken steps to make childcare cheaper and increase early childhood education and care workers’ wages.
While the Coalition has acknowledged the report and its recommendations, the Greens have called for immediate implementation of the reforms, advocating for free early years education for all children.
The debate over universal ECEC will likely continue, with the government now needing to weigh the costs and benefits of implementing these significant changes to the childcare system.
First Piper 