Albanese/Clare signal final PC report recommendations central to reform roadmap

In the wake of the Commonwealth Government’s recent commitment to fund a 15 per cent pay increase for early childhood education and care (ECEC) educators across Australia multiple references by senior politicians to the Productivity Commission’s final report have re-raised the significance of its contents as a key influencer of policy decisions going forward. 

“That report, when I release it, talks about financially supporting our workers more, but it also helps to give us a roadmap about how to build a universal early education system,” Federal Minister for Education Jason Clare said in an interview soon after release of the educator wage increase news, likening such reform to “a universal healthcare system in the form of Medicare or universal superannuation system.” 

“Their work, their advice, will help to inform how we do this, not just for the next two years, but over the longer term,” he added. 

Minister Clare’s position was echoed by Prime Minister Anthony Albanese during a doorstop interview given alongside Minister for Early Childhood Education Dr Anne Aly when he noted, “we have had a Productivity Commission (PC) review, but we’re looking at the move towards universal provision of affordable childcare, which is what I said before the election.”

PC report release “Not too far away” says Mr Clare with long term change emphasised

Minister Clare confirmed that the final report is currently “on his desk” and despite a number of targeted questions as to when it would be released from ABC interviewer Greg Jennett no specific dates were shared. 

“Not too far away,” Minister Clare repeated twice, the second time after suggestions by Mr Jennett that it may be released in September 2024. 

Regardless of the specific date of release it is notable that senior politicians are framing the PC report and its recommendations as the primary reference point that will be used to craft the policy framework required to deliver on Prime Minister Albanese’s long held vision to build a universal early education system in Australia. 

In addition, Minister Clare emphasised that setting the system up for success was a priority with a time horizon of “over the next ten years” referenced. 

Interim PC report emphasised “evolution not revolution” but will the Final report agree?

The interim PC report, released in late 2023, provided a comprehensive insight into the Commission’s initial thoughts on how to craft an early childhood education and care system that was truly universal for all Australians.

Via thirty two recommendations – including suggesting that up to 30 hours or three days a week should be available to all children aged 0–5 years, raising the maximum rate of the Child Care Subsidy (CCS) to 100 per cent of the hourly rate cap for families on incomes up to $80,000 and that the CCS activity test should be relaxed – the PC signaled that its preference was to evolve the current demand side subsidy framework as opposed to replacing it. 

“Policy goals would be more effectively achieved through relaxing the activity test and increasing the subsidy rate for lower income families,” the Commission noted in the draft report. 

However, it’s important to remember a draft report is not a final report. 

Careful messaging from Minister Clare and Prime Minister Albanese have signaled the final reports significance in shaping future policy but until it is actually released ECEC stakeholders should be cautious about concluding what the future may hold.