NSW Childcare and Economic Opportunity Fund Bill provides first glimpse of how $865m ECEC commitment will be administered

The New South Wales Government has introduced its Childcare and Economic Opportunity Fund Bill 2022 to the legislative assembly as it seeks to deliver on its promise to deliver “more accessible and affordable quality childcare” to families across the state. 

 

The Bill outlines the key foundational components needed to execute on the Government’s extensive investment in early childhood education and care first announced in the FY22 Budget in June 2022 of this year. 

 

The Bill includes a framework for the establishment of an independent board to govern the process as well as funding limits and independent expert appointments. As yet the details of how the fund will be actually administered, including eligibility criteria to access it, have not yet been formulated. 

 

Treasurer Matt Kean said the NSW Government’s early childhood education reforms are estimated to boost affordable childcare supply by up to 47,000 places when combined with changes to the Commonwealth Childcare Subsidy.

 

“The NSW Childcare and Economic Opportunity Fund Bill 2022 will help give more people in our State the opportunity to choose both a career and a family by easing cost of living pressure,” he said. 

 

Minister for Education and Early Learning Sarah Mitchell echoed these sentiments noting that the Fund will provide opportunities for the early childhood sector to grow, be innovative to the needs of families and support children with the highest quality education and care.

 

“Enshrining this in law will guarantee investment in the sector and improve quality in both infrastructure and the workforce. We’ll continue to work with providers on the Fund’s rollout to best support the formative years of children’s lives,” Ms Mitchell said.

 

Bill outlines foundationary actions, is silent on details of funds disbursement process 

 

The Childcare and Economic Opportunity Fund Bill 2022 contains the first step in establishing the building blocks for the creation of a financial resource to support Government to incentivise providers, and support families, to enable better early childhood education and care outcomes across the state. 

 

Key areas are as follows:

 

Independent market monitoring reports  

 

The Bill states that an independent person must undertake a review into the childcare sector market, including by reviewing areas where there are childcare supply shortages, or there are higher barriers to parents or carers participating in work because of the affordability or accessibility, or both, of childcare.

 

The report must estimate the overall cost required to meet the stated objectives of the Act.

 

Establishment of a NSW Childcare and Economic Opportunity Fund Board

 

A Board consisting of five members including the Education Secretary or a representative of the Department of Education will be established to develop strategic investment plans for its activities, that include types of programs for which financial assistance will be provided. 

 

It will also be responsible for administering the programs, including by approving the provision of financial assistance, and the payment of amounts from the Fund. 

 

Creation of the NSW Childcare and Economic Opportunity Fund 

 

The Bill stipulates the creation of the NSW Childcare and Economic Opportunity Fund and commits to its funding to the tune of $100 million in FY 2024, $270 million in FY 2025 and $495 million in FY 2026. 

 

Allowances for the recovery of disbursed funds that were allocated incorrectly, accessed by fraud or if conditions of disbursement were not met will be addressed via the courts. 

 

To review the Childcare and Economic Opportunity Bill explanatory note visit the Parliament of New South Wales website.