The Australia Institute says free childcare key to economic recovery

The Australia Institute, with its reputation for being one of the country’s most influential and progressive ‘think tanks’ has spoken out in favour of retaining the ‘free childcare’ measures brought in to sustain the early childhood education and care (ECEC) sector, saying that not only is free childcare a form of fiscal stimulus, but in the long run, it will significantly grow Gross Domestic Product (GDP) and make Australia a far more equitable country.

• Nordic countries have much more generous childcare policies and much higher rates of female participation in full-time work.
• Compared to Nordic countries, Australia’s female participation rates fall significantly at the ages when the largest number of people are raising young families—a simple way to increase participation rates is by helping secondary income earners, often women, re-enter the workforce after the birth of a child.
• If Australia had the same labour force participation rates as Nordic countries do, then the economy would be $60 billion, or 3.2 per cent of GDP, larger.
• If Australia had the same participation rates as Iceland, the Nordic country with the highest female participation rates, then Australia’s GDP would be $140 billion, or 7.5 per cent, higher.