Legislation designed to cut ECEC costs formally introduced to parliament

Legislation designed to deliver promised cuts to the cost of early childhood education and care (ECEC) was introduced to parliament yesterday. 

 

The Federal Treasury estimates the proposed reforms will add the equivalent of up to 37,000 extra full-time workers to the economy in 2023-24, and leave a family on the median combined income of $120,000 with one child in early childhood education with $1,780 savings in the first year of the plan, with an estimated 1.26 million families to benefit.

 

“Early childhood education and care plays a vital role in supporting families and improves the education and health outcomes of our children,” Federal Minister for Early Childhood Education, Dr Anne Aly said.

 

“Boosting access to early childhood education and care means more children can access the benefits of foundation years learning, ensuring our kids are ready for a life of exploration and learning.”

 

The costs to access ECEC have risen 41 per cent in the past eight years, and the introduction of the legislation was a core election promise for the sitting Government. 

 

The Higher Child Care Subsidy for families with multiple children aged five or under in early childhood education will be retained, with the legislation also introducing measures to increase transparency in the ECEC sector by requiring all large providers to publicly report revenue and profits, together with commercial leasing information.

 

“These changes will help ease cost of living pressures, improve women’s economic security and ensure all Australian families can make the choices around workforce participation and early childhood education that work for them,” Dr Aly said in closing. 

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