Keeping ECEC places available: what families and providers need to make access work

A Productivity Commission submission revisits how staffing, sustainable funding and different service models can improve early learning access in rural, regional and remote communities.

A family may have subsidised care hours available and still struggle to find a place on the days they need. A service may have room for more children but be unable to recruit the educators needed to offer places.

Those pressures underpin a Productivity Commission submission published on 8 October 2026. Provided to a Senate inquiry on 29 September, it revisits findings and recommendations from the Commission’s 2024 early childhood education and care inquiry.

The submission is a contribution to policy discussions. Its historical availability figures are not a new count of places or vacancies in 2026.

What the numbers can tell us

The inquiry found most children in regional and remote Australia lived in areas with at least three children aged under five for each centre-based day care place.

That comparison helps identify gaps in provision. It cannot establish how many families are seeking care, which days they require or whether available places suit their children’s ages.

Family day care and preschool can improve local access, although their capacity and age coverage differ. Looking only at long day care therefore gives an incomplete picture of available options.

Affordability is also uneven. The submission notes that fees and out-of-pocket costs vary by service type, jurisdiction and location. Distance from a capital city alone does not explain what families pay.

Keeping services open

Some communities have dispersed, low or variable demand alongside high building, staffing and operating costs. The Commission describes these settings as thin markets.

In these locations, it writes, “market forces alone do not lead to the establishment of services that can meet the needs of all children and families”.

The submission reiterates recommendations for establishment funding and, where necessary, ongoing operating support.

It acknowledges the Australian Government’s $1 billion Building Early Education Fund, but says capital investment may not meet the needs of communities requiring continuing operational assistance.

The Commission’s proposed ongoing block grants would be subject to periodic review. For funding decisions, that points to considering local needs, service costs and whether support remains appropriate as circumstances change.

For providers, the distinction is practical. Opening a building and sustaining an education and care service involve different commitments. Recruitment, staff development, enrolments and operating costs need to be considered together.

Subsidised hours and available places

The Three-Day Guarantee provides all Child Care Subsidy-eligible families with at least 72 hours of subsidised care per fortnight, regardless of activity levels.

The Department of Education states that families are not guaranteed a place with a provider. They must still secure a place and may need to pay a gap fee.

The Commission’s workforce recommendations include qualification pathways, professional development and clearer career opportunities, alongside stronger quality oversight and inclusion support.

Different arrangements for different communities

Outside school hours care presents another access challenge. Evidence from the 2024 inquiry found one in four schools in outer regional areas offered OSHC, compared with three in four in major cities.

The Commission recommended facilitating OSHC in public schools wherever demand is sustainable.

It also identifies family day care as an option for variable demand and non-standard hours, and calls for sustainable funding for Aboriginal community-controlled organisations and culturally safe services.

For families, useful access means finding appropriate care they can rely on. For providers and policymakers, planning needs to account for the workforce, resources and service arrangements that make that possible.

Read the full Productivity Commission submission here.