Read The Times Australia

Daily Bulletin

How the early childhood learning and care system works (and doesn't work) – it will take some fixing

  • Written by: Peter Hurley, Policy Fellow, Mitchell Institute, Victoria University
How the early childhood learning and care system works (and doesn't work) – it will take some fixing

Recent Victorian and New South Wales government announcements may signal the first steps in a profound change to Australia’s early childhood sector.

And it’s been a long time coming. Over the past 30 years there has been a big increase in the use of early learning. There are more parents in the workforce and more children in formal care than ever before.

And our current system is struggling to cope. Access to childcare can depend on where you live.

Low pay and poor conditions have led to major problems with attracting and retaining the skilled workforce we need to deliver early learning and care services.

The state governments’ promises are significant. They follow the new federal Labor government’s promise to investigate how to introduce universal high-quality childcare.

But a lot of work needs to be done for Australia’s early childhood sector to live up to the promises being made by governments.

Read more: A $15 billion promise of universal access to preschool: is this the game-changer for Aussie kids?

How does the current system work?

Australia’s early childhood sector is better thought of as several systems operating under a single national quality framework.

Services funded by the Child Care Subsidy (CCS) are the largest part of the system. These include what is traditionally thought of as “childcare”.

Read more: High childcare fees, low pay for staff and a lack of places pose a huge policy challenge

These services use a subsidy-based funding model where providers set their price and charge parents a fee.

The federal government supports the cost through a subsidy, based on family income and paid directly to the childcare service.

A major part of the NSW and Victorian government announcements is an expansion of preschool programs.

Whereas childcare can cater for children aged 0 to 5 years, preschool is more focused on the year or two years before school. Preschool involves structured play-based learning in a range of settings. These include schools, standalone centres and, increasingly, alongside childcare services in centre-based day care.

By expanding access to preschools, the state governments are offering to create more places, particularly for children aged 3 to 5.

Like the school sector, they will use a direct funding model. This is where governments pay a pre-determined amount directly to a centre based on enrolments.

The NSW and Victorian government also announced measures focusing on the supply-side of childcare.

The Victorian government is promising to establish 50 government-operated childcare centres, bucking a trend of relying on non-government providers to deliver childcare.

NSW will create a fund to support an increase of 47,000 childcare places at non-government providers.

Read more: More diversity can help solve twin problems of early childhood staff shortages and families missing out

What are the problems with the system?

The current early childhood system has strengths, but many weaknesses too.

The total amount of subsidies provided is large – about A$8.5 billion per year. But so is the cost to parents. Estimates based on federal government data suggest the current average out-of-pocket cost for the first child in centre-based day care is A$5,000 per year.

Access is another big issue. Recent Mitchell Institute research highlights the extent of the problem of “childcare deserts”. These are areas where there are more than three children vying for every available place.

About 35% of Australians live in a childcare desert. And 1.1 million Australians do not have access to a childcare centre at all.

Read more: More than 1 million Australians have no access to childcare in their area

Unlike the school system, governments do not have an obligation to provide access to childcare. Instead, providers choose where to operate. Price plays a central role in the system’s design, and weak or unstable demand means it can be too risky to operate in certain locations.

Providers can be encouraged to go where there is more demand and where they can charge more.

Finding the workforce to enable increased supply will be a further challenge to the proposed expansion. The sector is experiencing record workforce shortages.

A high-quality workforce is a major component of a quality system. Attracting skilled workers and retaining them will be very important.

Read more: 'Greatest transformation of early education in a generation'? Well, that depends on qualified, supported and thriving staff

What’s driving the need for change?

Behind the flurry of announcements are long-term demographic shifts. The proportion of children in formal childcare has increased by 75% since 1996. About 66% of three-year-olds were in a subsidised service in the July 2021 quarter. Nearly 90% of eligible children were enrolled in a preschool program in the year before they started school.

If home is where we start from, some form of early learning is where most children will end up next.

Making sure that families are supported in a way that meets their needs and matches a child’s stage of development is vitally important.

The early childhood sector is only part of the response. Meeting the needs of families and children also requires reform of parental leave, maternal and child health services, and other wraparound services.

The announcements made by the federal, NSW and Victorian governments set the scene for the next stage of reform in the early childhood sector.

Designing a system that delivers affordable, accessible, high-quality early childhood education and care will require a lot more work, and a lot more resources than what has just been announced.

This article is part of The Conversation’s Breaking the Cycle series, which is supported by a philanthropic grant from the Paul Ramsay Foundation.

Authors: Peter Hurley, Policy Fellow, Mitchell Institute, Victoria University

Read more https://theconversation.com/how-the-early-childhood-learning-and-care-system-works-and-doesnt-work-it-will-take-some-fixing-185299

Business News

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...