tag:theconversation.com,2011:/ca/topics/childcare-subsidy-70015/articleschildcare subsidy – The Conversation2022-06-21T02:16:16Ztag:theconversation.com,2011:article/1852992022-06-21T02:16:16Z2022-06-21T02:16:16ZHow the early childhood learning and care system works (and doesn’t work) – it will take some fixing<figure><img src="https://images.theconversation.com/files/469722/original/file-20220620-25-glwfff.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5533%2C3899&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Recent Victorian and New South Wales government <a href="https://www.abc.net.au/news/2022-06-16/nsw-victoria-plan-for-new-preschool-year-education/101155350">announcements</a> may signal the first steps in a profound change to Australia’s early childhood sector.</p>
<p>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 <a href="https://aifs.gov.au/publications/child-care-package-evaluation-final-report">than ever before</a>.</p>
<p>And our current system is struggling to cope. Access to childcare can <a href="https://www.vu.edu.au/mitchell-institute/early-learning/childcare-deserts-oases-how-accessible-is-childcare-in-australia#:%7E:text=A%20childcare%20desert%20is%20a,and%20in%20all%20capital%20cities.">depend on where you live</a>. </p>
<p>Low pay and poor conditions have <a href="https://theconversation.com/early-childhood-educators-are-leaving-in-droves-here-are-3-ways-to-keep-them-and-attract-more-153187">led to major problems</a> with attracting and retaining the skilled workforce we need to deliver early learning and care services.</p>
<p>The state governments’ promises are significant. They follow the new federal Labor government’s <a href="https://www.canberratimes.com.au/story/7725480/albanese-seeks-legacy-through-child-care">promise</a> to investigate how to introduce universal high-quality childcare.</p>
<p>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.</p>
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Read more:
<a href="https://theconversation.com/a-15-billion-promise-of-universal-access-to-preschool-is-this-the-game-changer-for-aussie-kids-185211">A $15 billion promise of universal access to preschool: is this the game-changer for Aussie kids?</a>
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<h2>How does the current system work?</h2>
<p>Australia’s early childhood sector is better thought of as several systems operating under a single <a href="https://www.acecqa.gov.au/national-quality-framework">national quality framework</a>.</p>
<p>Services funded by the Child Care Subsidy (CCS) are the largest part of the system. These include what is traditionally thought of as “childcare”.</p>
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Read more:
<a href="https://theconversation.com/high-childcare-fees-low-pay-for-staff-and-a-lack-of-places-pose-a-huge-policy-challenge-183617">High childcare fees, low pay for staff and a lack of places pose a huge policy challenge</a>
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<p>These services use a subsidy-based funding model where providers set their price and charge parents a fee.</p>
<p>The federal government supports the cost through a subsidy, based on family income and paid directly to the childcare service.</p>
<p>A major part of the NSW and Victorian government announcements is an expansion of preschool programs.</p>
<p>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.</p>
<p>By expanding access to preschools, the state governments are offering to create more places, particularly for children aged 3 to 5.</p>
<p>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. </p>
<p>The NSW and Victorian government also announced measures focusing on the supply-side of childcare. </p>
<p>The Victorian government is promising to establish <a href="https://www.theage.com.au/national/victoria/kindergarten-to-get-a-9b-overhaul-with-more-places-and-longer-hours-20220615-p5atzl.html">50 government-operated childcare centres</a>, bucking a trend of relying on non-government providers to deliver childcare.</p>
<p>NSW will <a href="https://www.treasury.nsw.gov.au/childcare-fund/affordable-and-accessible-childcare">create a fund</a> to support an increase of 47,000 childcare places at non-government providers. </p>
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Read more:
<a href="https://theconversation.com/more-diversity-can-help-solve-twin-problems-of-early-childhood-staff-shortages-and-families-missing-out-185205">More diversity can help solve twin problems of early childhood staff shortages and families missing out</a>
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<h2>What are the problems with the system?</h2>
<p>The current early childhood system has strengths, but many weaknesses too.</p>
<p>The total amount of subsidies provided is large – about A$8.5 billion per year. But so is the cost to parents. <a href="https://www.vu.edu.au/mitchell-institute/early-learning/election-2022-early-childhood-education-care-policy-brief">Estimates based on federal government data</a> suggest the current average out-of-pocket cost for the first child in centre-based day care is A$5,000 per year.</p>
<p>Access is another big issue. Recent <a href="https://www.vu.edu.au/mitchell-institute/early-learning/childcare-deserts-oases-how-accessible-is-childcare-in-australia#:%7E:text=A%20childcare%20desert%20is%20a,and%20in%20all%20capital%20cities.">Mitchell Institute research</a> highlights the extent of the problem of “childcare deserts”. These are areas where there are more than three children vying for every available place. </p>
<p>About 35% of Australians live in a childcare desert. And 1.1 million Australians do not have access to a childcare centre at all.</p>
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Read more:
<a href="https://theconversation.com/more-than-1-million-australians-have-no-access-to-childcare-in-their-area-179557">More than 1 million Australians have no access to childcare in their area</a>
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<p>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.</p>
<p>Providers can be encouraged to go where there is more demand and where they can charge more.</p>
<p>Finding the workforce to enable increased supply will be a further challenge to the proposed expansion. The sector is experiencing <a href="https://labourmarketinsights.gov.au/our-research/internet-vacancy-index/">record workforce shortages</a>. </p>
<p>A high-quality workforce is a <a href="https://theconversation.com/greatest-transformation-of-early-education-in-a-generation-hinges-on-qualified-supported-and-thriving-staff-185210">major component</a> of a quality system. Attracting skilled workers and retaining them will be very important.</p>
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Read more:
<a href="https://theconversation.com/greatest-transformation-of-early-education-in-a-generation-well-that-depends-on-qualified-supported-and-thriving-staff-185210">'Greatest transformation of early education in a generation'? Well, that depends on qualified, supported and thriving staff</a>
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<h2>What’s driving the need for change?</h2>
<p>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 <a href="https://www.dese.gov.au/early-childhood/resources/june-quarter-2021">July 2021 quarter</a>. Nearly <a href="https://www.aihw.gov.au/reports/cws/69/australias-children/contents/education/early-childhood-education">90% of eligible children</a> were enrolled in a preschool program in the year before they started school. </p>
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<p>If home is where we start from, some form of early learning is where most children will end up next.</p>
<p>Making sure that families are supported in a way that meets their needs and matches a child’s stage of development is vitally important.</p>
<p>The early childhood sector is only part of the response. Meeting the needs of families and children also <a href="https://cpd.org.au/2021/11/starting-better-centre-for-policy-development/">requires reform</a> of parental leave, maternal and child health services, and other wraparound services.</p>
<p>The announcements made by the federal, NSW and Victorian governments set the scene for the next stage of reform in the early childhood sector.</p>
<p>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.</p>
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<p><em>This article is part of The Conversation’s <a href="https://theconversation.com/au/topics/breaking-the-cycle-119149">Breaking the Cycle</a> series, which is supported by a philanthropic grant from the Paul Ramsay Foundation.</em></p><img src="https://counter.theconversation.com/content/185299/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hurley works for the Mitchell Institute who receive funding from Minderoo's Thrive By Five to undertake research into early childhood education and care. This article is part of The Conversation's Breaking the Cycle series, which is about escaping cycles of disadvantage. The series is supported by a philanthropic grant from the Paul Ramsay Foundation.</span></em></p>The system has several elements and many problems. Making it fit for purpose will take a lot of work and even more resources than those that have just been announced.Peter Hurley, Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1836172022-05-30T20:32:14Z2022-05-30T20:32:14ZHigh childcare fees, low pay for staff and a lack of places pose a huge policy challenge<p><a href="https://www.alp.org.au/policies/cheaper-child-care">Cheaper childcare</a> was Labor’s largest single election promise, at an estimated cost of A$5.4 billion a year. Anthony Albanese went so far as to outline <a href="https://www.canberratimes.com.au/story/7725480/albanese-seeks-legacy-through-child-care">universal childcare</a> as one of his new government’s three main policies for economic reform.</p>
<p>While the cost of childcare for families is a major concern, many other issues confront the sector. Foremost among these is a <a href="https://theconversation.com/more-than-1-million-australians-have-no-access-to-childcare-in-their-area-179557">lack of childcare places</a> in many parts of Australia and <a href="https://au.indeed.com/career-advice/finding-a-job/lowest-paid-jobs-in-australia">low pay</a> for childcare workers, who are increasingly <a href="https://thesector.com.au/2021/07/13/child-care-flagged-as-occupation-in-national-shortage-with-strong-future-demand-in-latest-nsc-skills-priority-list/">in short supply</a>.</p>
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Read more:
<a href="https://theconversation.com/more-than-1-million-australians-have-no-access-to-childcare-in-their-area-179557">More than 1 million Australians have no access to childcare in their area</a>
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<p>With the election now behind us, how do the new government’s promised polices compare to the challenges the early learning sector is facing?</p>
<h2>What was promised?</h2>
<p>Labor has committed to increasing the subsidy to up to 90% for the first child in childcare from July 2023. There will also be higher subsidies for families with more than one child in childcare, including school-age children in care outside school hours.</p>
<p>Labor predicts 96% of families who use childcare will be better off under the new policy. </p>
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<p>Labor has also promised to task the Productivity Commission and the Australian Competition and Consumer Commission (ACCC) with ensuring further reform.</p>
<p>The ACCC will be directed to develop a mechanism to regulate the cost of childcare, with the aim of making it more affordable.</p>
<p>The Productivity Commission will be tasked with a review of the early childhood system, with a view to supporting a universal 90% childcare subsidy for all families. But it is not clear exactly what the review will examine. The terms of reference are not yet known.</p>
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Read more:
<a href="https://theconversation.com/covid-chaos-has-shed-light-on-many-issues-in-the-australian-childcare-sector-here-are-4-of-them-174404">COVID chaos has shed light on many issues in the Australian childcare sector. Here are 4 of them</a>
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<h2>What are the other problems?</h2>
<p>There are many other issues in the sector. One of the biggest is access. Many families struggle to find the care they need.</p>
<p><a href="https://www.vu.edu.au/mitchell-institute/early-learning/childcare-deserts-oases-how-accessible-is-childcare-in-australia">Our research</a> shows around 35% of Australians live in regions classified as a “childcare desert”. This is where more than three children aged four and under are vying for every available childcare spot.</p>
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<p>Rural and regional areas have the worst problems with finding childcare places.
Of the 1.1 million Australians with no access to centre-based day care within a 20-minute drive, almost all are outside major cities.</p>
<p>Areas with the highest fees generally have the highest childcare availability. This better access suggests providers establish services not only where there is demand, but where they are likely to make greater profits.</p>
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<p>When it comes to work, mothers with a child aged under five years who live in a childcare desert have lower levels of workforce participation.</p>
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Read more:
<a href="https://theconversation.com/if-governments-were-really-concerned-about-tax-and-the-cost-of-living-they-would-cut-the-cost-of-childcare-182669">If governments were really concerned about tax and the cost of living they would cut the cost of childcare</a>
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<p>As for workers within the early learning system, there are widespread problems with low pay and retention. Attracting staff is becoming increasingly difficult. The <a href="https://lmip.gov.au/default.aspx?LMIP/GainInsights/VacancyReport">latest employment data</a> show vacancies in childcare occupations are at a record high.</p>
<p>A <a href="https://bigsteps.org.au/wp-content/uploads/2021/08/Exhausted-undervalued-and-leaving.pdf">2021 survey</a> of almost 4,000 early childhood educators showed 37% do not intend to stay in the sector long-term. Of this group, 74% intend to leave within the next three years and 26% within the year. </p>
<p>Pay and conditions as well as professional recognition and professional learning opportunities all influence the attraction and retention of early educators. Regional, remote and Aboriginal and Torres Strait Islander workforces are the <a href="https://www.acecqa.gov.au/sites/default/files/2021-10/ShapingOurFutureChildrensEducationandCareNationalWorkforceStrategy-September2021.pdf">worst affected</a> by these issues. </p>
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Read more:
<a href="https://theconversation.com/early-childhood-educators-are-leaving-in-droves-here-are-3-ways-to-keep-them-and-attract-more-153187">Early childhood educators are leaving in droves. Here are 3 ways to keep them, and attract more</a>
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<h2>How do the promises stack up against all these problems?</h2>
<p>While Labor has committed to making childcare more affordable, the other systemic issues that riddle the sector have been neglected. </p>
<p>Early learning has an important role to play in overcoming disadvantage. But it is the most disadvantaged communities that have the least access – focusing on cost alone will not improve access for those in childcare deserts. There is not yet enough information about the scope of Productivity Commission review to determine whether these issues will be identified and rectified. </p>
<p>If Labor is serious about moving towards universal childcare, access will be an important barrier to overcome.</p>
<p>Also unclear at this stage is whether the review will look at alternative methods of funding childcare. Australia’s childcare system is funded using a parent-subsidy-based model. Governments pay part of the cost of childcare through a means-tested subsidy.</p>
<p>There is some evidence that direct funding of services can improve early childhood services. This is where governments fund providers directly for each child, as happens for preschools and schools. According to <a href="https://www.oecd.org/education/school/startingstrongiiearlychildhoodeducationandcare.htm">the OECD</a>, direct public funding models can bring “more effective governmental steering of early childhood services, advantages of scale, better national quality, more effective training for educators and a higher degree of equity in access compared with parent subsidy models”. </p>
<p>The issues of attracting and retaining staff in the early learning workforce are complex. Increased pay and better conditions must be front of mind for any real progress, accompanied by career pathways and support for professional learning, regardless of location. </p>
<p>The new government has an opportunity to take a strong stance on early learning and deliver a system that works for children, families, educators and the economy. It won’t be easy, but meaningful action for long-term change will deliver benefits for everyone.</p><img src="https://counter.theconversation.com/content/183617/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Hannah Matthews works for the Mitchell Institute who receive funding from Minderoo and the Thrive by Five campaign to undertake research on Australia's early learning sector.</span></em></p><p class="fine-print"><em><span>Peter Hurley works for the Mitchell Institute who receive funding from Minderoo and the Thrive by Five campaign to undertake research on Australia's early learning sector.</span></em></p>Cutting the cost of childcare for families won’t help them if there are no places available at local childcare centres or people to staff them.Hannah Matthews, Policy Fellow, Mitchell Institute, Victoria UniversityPeter Hurley, Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1799342022-03-29T02:47:37Z2022-03-29T02:47:37ZThe 2018 childcare package was partly designed to help families work more. But the benefits were too modest to matter<figure><img src="https://images.theconversation.com/files/454585/original/file-20220328-27-1cedce1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/smiling-mom-working-home-her-child-1680923362">Shutterstock</a></span></figcaption></figure><p>The federal government introduced the <a href="https://www.dese.gov.au/child-care-package">Jobs for Families Child Care Package</a> in July 2018. Then Education Minister <a href="https://www.aph.gov.au/Parliamentary_Business/Hansard/Hansard_Display?bid=chamber/hansards/64395ba4-5a2b-4856-b69b-826a5bf5fb00/&sid=0000">Simon Birmingham had said</a> the package would create a “simpler, more affordable, more accessible and more flexible early education and childcare system”. </p>
<p>He said the introduced new activity test and fee subsidy structure would</p>
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<p>ensure that taxpayers’ support for child care is targeted to those who depend on
child care to work or work additional hours […] [and] align the hours of subsidised care more closely with the combined hours of work, training, study or other recognised activity undertaken.</p>
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<p>The package was also intended to control what had been incessant increases in childcare fees. </p>
<p>When initially announced in 2015, then Prime Minister Malcolm Turnbull <a href="https://www.huffpost.com/archive/au/entry/15-a-day-childcare-changes-to-paid-parental-leave-under-new-go_a_21709175">described the package</a> as “the most significant reform to the early education and care system in 40 years”.</p>
<p>We were members of a team which conducted an evaluation of the package. This was commissioned by the government and included researchers from the Australian Institute of Family Studies, the Australian National University and the Social Policy Research Centre of the University of New South Wales.</p>
<p>The <a href="https://aifs.gov.au/sites/default/files/publication-documents/2021_child_care_package_evaluation_final_report.pdf">report of the evaluation</a>, released in recent days, found that, while for a majority of families the package had a positive financial benefit, this tended to be relatively modest. And the policy had little impact on longer term costs, access, flexibility or workforce engagement.</p>
<h2>The subsidy helped many lower and middle income families</h2>
<p>Simon Birmingham <a href="https://aifs.gov.au/sites/default/files/publication-documents/2021_child_care_package_evaluation_final_report.pdf">said</a> the package was </p>
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<p>targeted to those who need it most – low- and middle-income families who are juggling work and parenting responsibilities. </p>
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<p>The package introduced a new subsidy structure. For families with incomes of up to $68,163 in 2019-20, the rate of subsidy was 85% of the actual fee or a benchmark price, whichever is lower. The rate of subsidy reduced with income and stopped at $352,453 of total family earnings.</p>
<p>For the subsidy, families had to meet a tighter activity test than in the previous policy. This more closely linked the hours of subsidised childcare to parents’ approved activity such as work and study. In couples the activity level was based on the partner who had the lowest activity.</p>
<p>Parents who did not meet the activity test were still allowed a certain number of subsidised hours per fortnight, but the hours in this new package were lower than under the previously policy.</p>
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Read more:
<a href="https://theconversation.com/childcare-package-neither-bold-or-sustainable-41082">Childcare package neither bold or sustainable</a>
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<p>Our modelling used detailed administrative data. It estimated that, relative to the previous subsidy arrangements, about 686,000 families (62.2%) received more childcare subsidy than they previously would have been entitled to. </p>
<p>On average the net annual cost of childcare for these families fell by $1,386 – from $5,412 to $4,026. For the median family in this group, it fell by $1,036 – from $3,472 to $2,436. </p>
<p>But we also identified that costs increased for 323,000 of families (29.2%). The average net costs for these families, who tended to be on higher incomes, increased by $1,261. </p>
<p>We estimated the remaining 95,000 (8.6%) of families had no change to cost.</p>
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<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=358&fit=crop&dpr=1 600w, https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=358&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=358&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=450&fit=crop&dpr=1 754w, https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=450&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/454608/original/file-20220328-23-1e8mutd.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=450&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">This graph splits families’ incomes into vigintiles, which means 20 groups. The 20th vigintile is the highest earning group, while the first is the lowest.</span>
<span class="attribution"><a class="source" href="https://aifs.gov.au/sites/default/files/publication-documents/2021_child_care_package_evaluation_final_report.pdf">Screen shot/AIFS report</a></span>
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</figure>
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<p>The effect of the new subsidy arrangements varied across family income. The figure above shows the distinct pattern of the largest average increases in subsidy being recorded for the lower to middle income groups, with declines for those on the highest incomes. This reflects the intent of the package.</p>
<h2>Little impact on families working more hours</h2>
<p>Families who work more often find they lose much of the extra income they earn due to <a href="https://theconversation.com/mothers-have-little-to-show-for-extra-days-of-work-under-new-tax-changes-98467">what is known as</a> an “effective marginal tax rate”. This is where any extra earnings interact with policies including income tax rates, the Medicare levy and the loss of family benefits, combined with the net cost of child care.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/mothers-have-little-to-show-for-extra-days-of-work-under-new-tax-changes-98467">Mothers have little to show for extra days of work under new tax changes</a>
</strong>
</em>
</p>
<hr>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1285722271642984451"}"></div></p>
<p>Our evaluation found, despite some gains, the effective marginal tax rates on employment still remain high. Families on average incomes see half to almost three quarters of any additional earnings being lost through a combination of reduced transfer payments from government, income tax and the cost of having to use more childcare. </p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=431&fit=crop&dpr=1 600w, https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=431&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=431&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=542&fit=crop&dpr=1 754w, https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=542&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/454622/original/file-20220328-15-1rmz60d.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=542&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption"></span>
<span class="attribution"><a class="source" href="https://aifs.gov.au/sites/default/files/publication-documents/2021_child_care_package_evaluation_final_report.pdf">AIFS</a>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<p>As part of our evaluation we used data from various family surveys commissioned by the education department and conducted by ORIMA Research. Our evaluation found some families reported they had increased their level of employment in response to the package. But most said they had made no change and others said they had decreased employment. </p>
<p>This variation is consistent with economic expectations which see the response as being an interaction of an income and incentive effect. Overall there was a slight balance – some 1.5-1.9% towards higher participation. But this was consistent with the historical trend of increasing workforce participation by parents.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/we-need-a-new-childcare-system-that-encourages-women-to-work-not-punishes-them-for-it-142275">We need a new childcare system that encourages women to work, not punishes them for it</a>
</strong>
</em>
</p>
<hr>
<p>We found no evidence of the package having reduced the long-term trend towards increasing childcare costs. Its overall impact on childcare costs was relatively small and has already been significantly reduced by rising prices.</p>
<hr>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=259&fit=crop&dpr=1 600w, https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=259&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=259&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=326&fit=crop&dpr=1 754w, https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=326&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/454877/original/file-20220329-17-smder9.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=326&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption"></span>
<span class="attribution"><span class="license">Author provided</span></span>
</figcaption>
</figure>
<hr>
<h2>More ‘flexible’ hours, but higher fees</h2>
<p>Traditionally most child care centres have operated on the basis of charging on a daily basis for a long session of care. The package, including the “allowed hours” under the activity test, was intended to produce more flexible session lengths. </p>
<p>We found while many services did introduce shorter sessions, these were often charged at a higher hourly rate. Frequently the daily fee was the same, or close to that for long session. The more rigid start and finish time of these sessions made provision less, rather than more, flexible. </p>
<p>The reduction in approved hours from 24 hours of care per week to 24 hours per fortnight for those who did not meet the activity test raised some concerns about children losing access to care, or reducing attendance to just one day a week. But we found no evidence of this. </p>
<p>One reason for this was the potentially high proportion of children in this group who were eligible for support through other safety-net mechanisms such as Additional Child Care Subsidy.</p>
<p>Central to the findings of the evaluation was the larger question of the nature and role of childcare. Our evaluation found this had not been addressed in the package. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/quality-childcare-has-become-a-necessity-for-australian-families-and-for-society-its-time-the-government-paid-up-131748">Quality childcare has become a necessity for Australian families, and for society. It's time the government paid up</a>
</strong>
</em>
</p>
<hr>
<p>Rather, the evaluation concluded there was a need for a clear, coherent and comprehensive policy environment for childcare. This needs to link the important goals of the package relating to workforce participation with other policies related to quality of care and the critical role of measures such as universal access to preschool in child development and in preparation for schooling. To achieve this, strategies must also account for the federal and state divisions in responsibility for childrcare.</p><img src="https://counter.theconversation.com/content/179934/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The evaluation, the results of which are reported in this article was commissioned and funded by the Australian Government Department of Education, Skills and Employment. All authors were part of the evaluation team which undertook this.</span></em></p><p class="fine-print"><em><span>The evaluation, the results of which are reported in this article was commissioned and funded by the Australian Government Department of Education, Skills and Employment. All authors were part of the evaluation team which undertook this</span></em></p><p class="fine-print"><em><span>Ilan Katz receives funding from The Australian and State Governments, The Australian Research Council and the National Health and Medical Research Council </span></em></p><p class="fine-print"><em><span>The evaluation, the results of which are reported in this article was commissioned by the Australian Government Department of Education, Skills and Employment.</span></em></p>The federal government introduced the current childcare subsidy and activity test in 2018. An evaluation of the policy has found it met some of its intended objectives but failed at others.Rob Bray, Research Fellow, Australian National UniversityBen Phillips, Associate Professor, Centre for Social Research and Methods, Director, Centre for Economic Policy Research (CEPR), Australian National UniversityIlan Katz, Professor of Social Policy, UNSW SydneyMatthew Gray, Director, ANU Centre for Social Research and Methods, Australian National UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1665682021-08-24T02:58:14Z2021-08-24T02:58:14ZThe government has again rescued the childcare sector from collapse. But short-term fixes still leave it at risk<figure><img src="https://images.theconversation.com/files/417485/original/file-20210824-15-287sdb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/closeup-asian-kids-hand-playing-colorful-576832756">Shutterstock</a></span></figcaption></figure><p>The <a href="https://ministers.dese.gov.au/morrison/targeted-assistance-child-care-services-during-covid-lockdown">federal government yesterday announced</a> a relief package for childcare providers affected by extended lockdowns. </p>
<p>Childcare services in Commonwealth-declared hotspots will be eligible for payments of 25% of their pre-lockdown revenue. Outside-school-hours-care services will be eligible for payments of 40%.</p>
<p>Childcare centres must be experiencing a 50% drop in attendance, and agree to a fee freeze for the duration of support. </p>
<p>About 60% of childcare centres in Sydney <a href="https://www.theage.com.au/politics/victoria/commonwealth-flags-possible-changes-to-childcare-support-20210823-p58l0q.html">reportedly had less than half</a> their usual number of children. In Melbourne, the reported expectation is attendance would settle at about 40-50%.</p>
<p>Prime Minister Scott Morrison said the payments would immediately help around 3,600 childcare services in Greater Sydney. In Greater Melbourne, the package will assist <a href="https://www.dese.gov.au/early-childhood/resources/december-quarter-2020">about 2,300 services</a> and nearly 300 in the ACT.</p>
<p>This is the second time in two years the pandemic has brought parts of Australia’s childcare system to the verge of collapse. Last year, the government put in place <a href="https://ministers.dese.gov.au/tehan/child-care-support-continues-aid-covid-recovery">several rescue packages</a> for childcare and out-of-school-hours-care services.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/not-much-relief-for-parents-but-new-childcare-measures-will-rescue-providers-again-146752">Not much relief for parents, but new childcare measures will rescue providers (again)</a>
</strong>
</em>
</p>
<hr>
<p>But unlike in 2020, the recently announced package falls short of meeting the full costs of closure.</p>
<p>The most recent announcement means the federal government will meet most, but not all, the fee revenue childcare services collect. Parents whose children are still attending childcare may be asked to pay gap fees.</p>
<h2>What does this package mean for providers?</h2>
<p>Around <a href="https://www.theguardian.com/australia-news/2021/aug/20/childcare-centres-urge-nsw-government-to-clarify-rules-during-delta-wave">160 childcare centres</a> have reportedly closed nationally due to the immediate risk of COVID transmission.</p>
<p>In Victoria, childcare and preschools are <a href="https://www.coronavirus.vic.gov.au/authorised-provider-and-authorised-worker-permit#accessing-childcare">open to children</a> who have at least one parent or guardian with a valid authorised worker permit, working either at home or on site, and who can’t make alternative supervision arrangements.</p>
<p>In NSW, parents and families are strongly encouraged to keep their children at home.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=405&fit=crop&dpr=1 600w, https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=405&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=405&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=509&fit=crop&dpr=1 754w, https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=509&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/417505/original/file-20210824-25-1pjzkl9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=509&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Childcare isn’t open to all parents who need it.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/tired-mother-trying-work-on-laptop-1678267606">Shutterstock</a></span>
</figcaption>
</figure>
<p>Australia’s childcare is provided by a mixture of for-profit and not-for-profit services who usually charge on a per hour or daily basis.</p>
<p>The federal government <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy">provides a subsidy</a>, paid directly to early childhood services, who then pass it on to families as a fee reduction. </p>
<p>The amount of the subsidy, and the amount parents pay out-of-pocket, depends on family income and the fee childcare providers charge.</p>
<p>Normally, childcare providers must charge a gap fee to receive the federal government subsidy. </p>
<p>In 2020, during the first wave of the pandemic, the federal government implemented a “<a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2020/April/Coronavirus_response-Free_child_care">free childcare</a>” package.</p>
<p>Effectively, this meant the federal government continued to pay childcare providers the subsidies they normally received, as well as cover parents’ out-of-pocket costs.</p>
<p>Before the announcement yesterday, the federal government had <a href="https://ministers.dese.gov.au/morrison/targeted-assistance-child-care-services-during-covid-lockdown">already agreed to waive gap fees</a> for services in certain coronavirus “hot-spots”. Childcare providers can still receive the federal childcare subsidy, regardless of whether the child attends the service or whether they charge a gap fee to the child’s family. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/it-takes-a-village-why-sending-your-kid-to-childcare-isnt-outsourcing-parenting-163264">It takes a village: why sending your kid to childcare isn't 'outsourcing parenting'</a>
</strong>
</em>
</p>
<hr>
<p>However, the federal government was not covering the out-of-pocket costs of parents. Without fees collected from families, childcare providers were suffering. </p>
<p>The table below shows government subsidies account for about 62% of all income received by childcare providers. Out-of-pocket expenses are estimated to be on average about 38% of total revenue for early childhood service providers.</p>
<p><iframe id="8ffGs" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/8ffGs/3/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>Without the fees collected from families, it was difficult for providers to pay and retain their staff during the crisis. There were other difficult choices, too.</p>
<p>Childcare providers needed to make the decision whether to continue charging out-of-pocket expenses or waive the gap fee. While some providers <a href="https://www.service.nsw.gov.au/campaign/covid-19-help-businesses">may be eligible</a> for state based support, many do not meet eligibility requirements. </p>
<p>For parents and carers, whether they were required to pay out-of-pocket costs depends on the childcare provider. Many were faced with the tough decision of whether to pay for a service they are not using to keep their child enrolled.</p>
<p>The current announcement has helped ease these issues, but the sector remains vulnerable, especially when the rescue measures end.</p>
<h2>Let’s fix the funding model</h2>
<p>In the short term, advocates in the sector are also calling for two further measures. The first is clarification about which children are able to access childcare, particularly in NSW. This is so childcare providers and parents can more clearly understand their obligations. </p>
<p>The second is a vaccination program that enables childcare workers to access vaccines as essential workers.</p>
<p>In the long term, Australia may need to review how it approaches childcare to ensure a more resilient system less susceptible to external shocks.</p>
<p>Australia’s childcare system is a market-based subsidy model. This is different from other education or health services, which are often directly run or funded by governments.</p>
<p>Mostly non-government providers operate in the sector. Providers choose where to operate and set their own fees.</p>
<p>Australia applies similar types of <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-volume2.pdf">economic principles to childcare</a> that it does industries such as <a href="https://scholarship.law.duke.edu/cgi/viewcontent.cgi?article=3610&context=lcp">aviation</a>. Like an airline seat, payment is based entirely on use. Competition between providers on services and fees is encouraged.</p>
<p>Like the airline industry, the system is also prone to periodic collapse. In 2008, Australia’s largest provider of childcare services, <a href="https://www.mcgrathnicol.com/insight/abc-learning-10-years/">ABC Learning, folded</a> leaving the childcare arrangements for more than 110,000 children in the balance. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/quality-childcare-has-become-a-necessity-for-australian-families-and-for-society-its-time-the-government-paid-up-131748">Quality childcare has become a necessity for Australian families, and for society. It's time the government paid up</a>
</strong>
</em>
</p>
<hr>
<p>There is a <a href="https://developingchild.harvard.edu/guide/what-is-early-childhood-development-a-guide-to-the-science/">huge amount of research</a> showing the benefits of high quality early childhood education and care.</p>
<p>According to <a href="https://www.oecd.org/education/school/37519079.pdf">the OECD</a>:</p>
<blockquote>
<p>The evidence suggests that direct public funding of services brings more effective governmental steering of early childhood services, advantages of scale, better national quality, more effective training for educators and a higher degree of equity in access compared with parent subsidy models.</p>
</blockquote>
<p>The experience of the pandemic shows a fundamentally different approach might be needed for Australia to take full advantage of the benefits childcare can offer.</p><img src="https://counter.theconversation.com/content/166568/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hurley works for the Mitchell Institute who receive funding from Minderoo and the Thrive by Five campaign to undertake research on Australia's early childhood, education and care (ECEC) sector. </span></em></p><p class="fine-print"><em><span>Hannah Matthews works for the Mitchell Institute who receive funding from Minderoo and the Thrive by Five campaign to undertake research on Australia's early childhood, education and care (ECEC) sector.</span></em></p>The government is paying childcare services in hot-spots 25% of pre-pandemic revenue. But without parents’ fees, the sector is still in a tough position.Peter Hurley, Policy Fellow, Mitchell Institute, Victoria UniversityHannah Matthews, Policy Fellow, Mitchell Institute for Health and Education, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1634972021-06-29T19:58:25Z2021-06-29T19:58:25ZNearly 40% of Australian families can’t ‘afford’ childcare<figure><img src="https://images.theconversation.com/files/408778/original/file-20210629-17-6zac6s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-african-family-having-fun-together-1897808689">Shutterstock</a></span></figcaption></figure><p>Childcare is unaffordable for more than 385,000 Australian families, a new report from Victoria University’s Mitchell Institute shows.</p>
<p>The <a href="https://www.vu.edu.au/mitchell-institute/early-learning/assessing-childcare-affordability-in-australia">Counting the cost to families: assessing childcare affordability in Australia</a> report uses an international benchmark of no more than 7% of disposable income spent on childcare to determine childcare affordability for families.</p>
<figure class="align-right ">
<img alt="" src="https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=843&fit=crop&dpr=1 600w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=843&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=843&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1059&fit=crop&dpr=1 754w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1059&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/408753/original/file-20210628-19-hvqex7.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1059&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Mitchell Institute report into costs of childcare.</span>
</figcaption>
</figure>
<p>We found nearly 40% of families using childcare use more than 7% of their household income on childcare.</p>
<p>We also found about 83% of families who use childcare spend more on childcare than on utilities or clothing. About 70% spend more on childcare than transport, and over 30% spend more on childcare than on groceries.</p>
<p>Our report also models the impact of the Australian government’s <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/ChildCareSubsidy">recent childcare subsidy announcement</a>, due to take effect in July 2022. These changes will help families with two or more children under the age of six in childcare. But they still leave childcare unaffordable for about 336,000 families.</p>
<h2>How do we measure childcare costs to families?</h2>
<p>A lot of the discussion on childcare affordability focuses on <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2021/child-care-education-and-training">per-hour costs</a> and anecdotal evidence based on individual families’ circumstances. These are important, but can be hard to relate to for many families.</p>
<p>The Australian government also provides greater levels of subsidies to families who earn less. This means how much a family earns can substantially affect total childcare costs.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/we-need-a-new-childcare-system-that-encourages-women-to-work-not-punishes-them-for-it-142275">We need a new childcare system that encourages women to work, not punishes them for it</a>
</strong>
</em>
</p>
<hr>
<p>A better way to understand childcare costs is to explore its impact on the family budget.</p>
<p>To do this, we used data from the<a href="https://melbourneinstitute.unimelb.edu.au/hilda"> Household Income and Labour Dynamics in Australia</a> (HILDA) survey. The survey collects detailed data on spending from over 7,000 households every year.</p>
<p>The figure below uses this HILDA data and compares the cost of childcare to other common household expenses.</p>
<p><iframe id="47nke" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/47nke/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<h2>What is affordable childcare?</h2>
<p>Australia does not have an accepted way to measure childcare affordability.</p>
<p>But we do have affordability measures for other common household expenses. Housing stress for lower-income households, for example, is defined as a lower-income household spending more than 30% of gross income <a href="https://www.aihw.gov.au/reports/australias-welfare/housing-affordability">on accommodation</a>.</p>
<p>The US Department of Health and Human Services has set a childcare “<a href="https://www.brookings.edu/research/why-the-federal-government-should-subsidize-childcare-and-how-to-pay-for-it/">affordability threshold</a>” for low to middle income families of 7% of take-home income. If families are spending more than 7%, the department considers childcare “unaffordable”.</p>
<p>The Biden administration has included the 7% affordability threshold in its <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/28/fact-sheet-the-american-families-plan/">childcare package worth US$225 billion over ten years</a>. In the proposal, families earning 1.5 times the state median income will pay no more than 7% of their take home pay on childcare. For families earning 75% or less of the state median income, childcare will be free.</p>
<p>The figure below uses this 7% threshold to explore childcare affordability in Australia. It shows annual childcare costs as a proportion of family take home pay. Households exceeding the 7% threshold are in red.</p>
<p><iframe id="RlsNI" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/RlsNI/5/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>This figure suggests about 386,000 Australian households, or about 39% of families using childcare, pay more than 7% of their household income on childcare expenses.</p>
<p>Because childcare costs vary by how much a family earns, it is also important to explore out of pocket costs by household income. The figure below shows out of pocket expenses as a proportion of take-home pay by different income groups.</p>
<p><iframe id="2qClY" class="tc-infographic-datawrapper" src="https://datawrapper.dwcdn.net/2qClY/4/" height="400px" width="100%" style="border: none" frameborder="0"></iframe></p>
<p>This figure shows childcare affordability is an issue for many families, regardless of how much they earn. However, those on lower incomes have some of the highest rates of unaffordable childcare.</p>
<p>For instance, more than 33% of families who earn under A$70,000 per year spend 7-15% of their household income on childcare. And 15% of this group spend more than 15% on childcare. </p>
<p>This is compared to 8% of families earning more than A$200,000 spending over 15% on childcare.</p>
<h2>Do the recent changes make childcare more affordable?</h2>
<p>Childcare costs can multiply when families have more than one child in care.</p>
<p>The federal government’s recently announced changes aim to help families with multiple children in childcare. Under the proposal, the subsidy families receive for second and subsequent children will increase by up to 30 percentage points (capped at 95%). </p>
<p>This means families eligible for a 60% subsidy would now be eligible for a 90% subsidy on their second child if both children are aged under six.</p>
<p>The changes will also help families with a combined income of more than A$189,390, by removing the subsidy cap that restricts them to a maximum of A$10,560 per child a year.</p>
<p>The government says the new measures will impact 250,000 families when it is introduced in June 2022. But the <a href="https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/BudgetReview202122/ChildCareSubsidy">federal budget estimates</a> about 1.3 million families will use childcare in 2022-23. This means childcare affordability will not improve for about 1 million families.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/an-extra-1-7-billion-for-child-care-will-help-some-it-wont-improve-affordability-for-most-160163">An extra $1.7 billion for child care will help some. It won't improve affordability for most</a>
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<p>We modelled the impact of the changes and applied the new subsidy rates to family childcare expenses reported in the HILDA survey. </p>
<p>We found, under the proposal, about 50,000 families would move below the 7% affordability threshold. This means about 336,000 families would remain with unaffordable childcare.</p>
<p>Unaffordable childcare often results in parents – usually women – deciding not to work, or working fewer hours than they would like.</p>
<p><a href="https://nfaw.org/wp-content/uploads/2020/10/Appendix-A.pdf">Recent reports</a> show increasing childcare affordability will improve workforce participation. It will also mean more children can receive the developmental benefits of formal early learning.</p><img src="https://counter.theconversation.com/content/163497/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Peter Hurley works for the Mitchell Institute who have received funding from the Minderoo Foundation as part of the Thrive by Five initiative to partially fund this research.</span></em></p><p class="fine-print"><em><span>Hannah Matthews works for the Mitchell Institute who have received funding from the Minderoo Foundation as part of the Thrive by Five initiative to partially fund this research</span></em></p>A report uses an international benchmark of no more than 7% of disposable income spent on childcare to determine affordability. It finds childcare is unaffordable for 386,000 Australian families.Peter Hurley, Policy Fellow, Mitchell Institute, Victoria UniversityHannah Matthews, Policy Fellow, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1632642021-06-24T03:34:30Z2021-06-24T03:34:30ZIt takes a village: why sending your kid to childcare isn’t ‘outsourcing parenting’<figure><img src="https://images.theconversation.com/files/408065/original/file-20210624-21-l73xh4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-children-playing-educational-toys-1240622437">Shutterstock</a></span></figcaption></figure><p>A Coalition <a href="https://www.theguardian.com/australia-news/2021/jun/23/female-coalition-mps-fire-up-after-party-room-told-working-women-are-outsourcing-parenting">party room meeting this week</a> debated the A$1.7 billion childcare package announced in the budget, which would increase subsidies for families with more than one child in care and remove a cap on subsidies for higher-income families. </p>
<p>Some MPs reportedly argued childcare shouldn’t be the only type of care being subsidised and parents should also get help for staying at home with kids. One MP <a href="https://www.theguardian.com/australia-news/2021/jun/23/female-coalition-mps-fire-up-after-party-room-told-working-women-are-outsourcing-parenting">reportedly suggested</a> working women were “outsourcing parenting” by sending their kids to childcare.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1407190050538868738"}"></div></p>
<p>Leaving aside the fact sending your kid to childcare doesn’t preclude you from parenting at home when your kid isn’t in childcare, early childhood education and care – which includes childcare and preschool – is an <a href="https://education.unimelb.edu.au/__data/assets/pdf_file/0006/2929452/E4Kids-Report-3.0_WEB.pdf">important part</a> of a child’s development.</p>
<p>Parents are thought to be a <a href="https://earlychildhood.qld.gov.au/early-years/activities-and-resources/resources-parents/read-and-count/families-as-first-teachers">child’s first and most influential</a> educator. But children are also raised in the community. They learn important social, emotional, physical and cognitive skills and abilities during the critical time of their development. The course of human history over millennia shows raising a child takes a village. </p>
<h2>It takes a village</h2>
<p>Both nature and nurture influence successful development in children. Nature stems from biological factors children inherit from parents. Nurture is the environment children are exposed to. This is influenced by parents, siblings and caregivers in the home, as well as educators and peers in early education and care settings, and the broader community. </p>
<p>Young children need relationships with parents and <a href="http://46y5eh11fhgw3ve3ytpwxt9r-wpengine.netdna-ssl.com/wp-content/uploads/2007/03/InBrief-The-Science-of-Early-Childhood-Development2.pdf">other caregivers</a> in society to develop important social and cognitive skills. Australia’s early childhood learning framework (equivalent to a curriculum) is called <a href="https://www.acecqa.gov.au/nqf/national-law-regulations/approved-learning-frameworks">Belonging, Being and Becoming</a>. This highlights its focus on children’s relationships, social skills and becoming members of society. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/increasing-the-childcare-subsidy-will-help-struggling-families-and-the-economy-142557">Increasing the childcare subsidy will help struggling families — and the economy</a>
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<p>There is no one size fits all guide for parenting as each family is different. </p>
<p>At times, parenting can be challenging with competing demands and responsibilities. Many of these can have an effect on children, and families could need support. Parents with mental and physical health challenges may sometimes be <a href="https://www.aihw.gov.au/getmedia/6af928d6-692e-4449-b915-cf2ca946982f/aihw-cws-69-print-report.pdf.aspx?inline=true">less able than others to engage</a> their child in typical childhood activities without assistance from the community.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Father on the phone in front of his laptop while holding kid who is trying to touch everything on the desk." src="https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/408073/original/file-20210624-25-b9dn0i.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Parenting can be challenging and childcare is is a valuable support, a part of the village.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-working-father-talking-on-phone-1657938115">Shutterstock</a></span>
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<p>The community includes many important supports to raise children such as relatives, health and parenting services. </p>
<p>For instance, a <a href="https://theconversation.com/1-in-3-new-mums-struggle-to-get-their-baby-to-sleep-but-some-women-have-a-tougher-time-102269">study of women</a> who required admission to residential parenting services (around 80% needed help to settle the child) found over half had a history of mental health issues. The study’s authors noted Australian women were not routinely receiving the psychological and social help they needed. They wrote:</p>
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<p>Parents have lost the village it takes to raise a child and increasingly feel isolated and unsupported.</p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/1-in-3-new-mums-struggle-to-get-their-baby-to-sleep-but-some-women-have-a-tougher-time-102269">1 in 3 new mums struggle to get their baby to sleep, but some women have a tougher time</a>
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<p>Early childhood education and care centres are one important part of our village. </p>
<p>They form a <a href="https://www.acecqa.gov.au/nqf/national-quality-standard/quality-area-6-collaborative-partnership-with-families-and-communities">support network established</a> to ensure parents’ and children’s lifelong success. Around three in five Australian children (925,900 children) aged 0-4 <a href="https://www.aihw.gov.au/reports/children-youth/australias-children/contents/education/early-childhood-education">attended some form of childcare</a> in 2017. And nearly 296,000 (90%) of eligible children were enrolled in a preschool program in the year before full-time school.</p>
<p>Typically, the centres open at 6am and close at 6pm. Children can start <a href="https://www.dese.gov.au/key-official-documents-about-early-childhood/early-childhood-and-child-care-reports/child-care-australia/child-care-australia-report-december-quarter-2020">enrolment from birth</a> and will enter the nursery with an educator to child ratio of 1:4. </p>
<p>For parents who have experienced challenges parenting at home, or who may need help due to other commitments such as work, the option of early childhood education and care is precious. In 2015, the <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-overview.pdf">Productivity Commission estimated</a> around 165,000 Australian parents would like to work more, but were prevented due to poor accessibility or affordability of suitable childcare.</p>
<h2>Is there such a thing as too much childcare?</h2>
<p>The <a href="https://www.dese.gov.au/key-official-documents-about-early-childhood/early-childhood-and-child-care-reports/child-care-australia/child-care-australia-report-december-quarter-2020">average weekly attendance</a> in early education and care centres per child was 26.1 hours in December 2020. For long day care, the average was 30.5 hours per child, or around three days per week. This suggests parents still have many hours per week for parenting their children at home.</p>
<p>Evidence shows participation in quality early childhood education for at least 15 hours per week <a href="https://www.thefrontproject.org.au/images/downloads/Cost-benefit%20analysis_brochure.pdf">benefits children’s</a> overall development and provides them with important social and emotional skills.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Mum reading book with daughter in a living room tent." src="https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=416&fit=crop&dpr=1 600w, https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=416&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=416&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=523&fit=crop&dpr=1 754w, https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=523&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/408076/original/file-20210624-21-1kh6mmi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=523&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Children spend around 26 hours per week in childcare, leaving a lot of time for parenting at home.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/family-bedtime-mom-child-daughter-reading-1060676333">Shutterstock</a></span>
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<p>But there are some families who do require a lot more childcare. In 2008, a <a href="https://www.brisbanetimes.com.au/lifestyle/children-in-care-60-hours-a-week-20080729-gea6jq.html">census of childcare services found </a> 757 children across Australia were attending long daycare services for at least 60 hours a week. And a further 9,426 children were in care for between 50 and 60 hours a week at the time of the census in May 2006. </p>
<p>More recently, <a href="https://www.abs.gov.au/statistics/people/education/childhood-education-and-care-australia/jun-2017">ABS data show</a> 28,200 children attended long daycare for 45 hours or more in 2017.</p>
<p>In 2018, a Canadian study published some worrying findings about <a href="https://ifstudies.org/blog/measuring-the-long-term-effects-of-early-extensive-day-care">risks of too many hours of full time childcare</a>. Statistical analysis showed significant differences in increased levels of hyperactivity, anxiety and aggression for children who attended more than 30 hours per week of childcare, in comparison to those who attended ten hours per week.</p>
<p>We would need more research to show the ways these risks depend on the nature and nurture of the child, the quality of the centre and staff, and influences of the community, government and funding. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/preschool-benefits-all-children-but-not-all-children-get-it-heres-what-the-government-can-do-about-that-117660">Preschool benefits all children, but not all children get it. Here's what the government can do about that</a>
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<p>We also don’t know why some children attend long hours at childcare. It may be for many reasons, including being in the child support system and parental health. In all these circumstances, as already discussed, childcare is an important and necessary social support.</p>
<p>We all play a role in raising children. It’s not a matter of outsourcing.</p><img src="https://counter.theconversation.com/content/163264/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Laurien Beane does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Early childhood education and care centres, which includes childcare and preschool, are part of our village. They form a support network established to ensure parents’ and children’s lifelong success.Laurien Beane, Course Coordinator, Queensland Undergraduate Early Childhood, Australian Catholic UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1606102021-05-12T05:00:45Z2021-05-12T05:00:45Z‘Insulting’ and ‘degrading’: budget funding for childcare may help families but educators are still being paid pennies<figure><img src="https://images.theconversation.com/files/400178/original/file-20210512-19-zg9rhm.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-beautiful-teacher-toddlers-playing-building-1690362274">Shutterstock</a></span></figcaption></figure><p>The government has <a href="https://budget.gov.au/2021-22/content/essentials.htm#seven">committed an additional</a> A$1.7 billion over five years to reduce the cost of childcare for around 250,000 families with more than one child. Another $1.6 billion is going into ensuring each four-year-old child gets 15 hours of preschool a week. </p>
<p>But these budget announcements, framed in part as being a boost for women’s participation in the workforce, hold no good news for the early childhood workforce — <a href="https://education.nsw.gov.au/content/dam/main-education/early-childhood-education/working-in-early-childhood-education/media/documents/Workforce-Literature-Review.pdf">95% of whom are women</a>.</p>
<p>The increase in families using early childhood education and care relies on the stability of the workforce. At the moment, however, an <a href="https://theconversation.com/early-childhood-educators-are-leaving-in-droves-here-are-3-ways-to-keep-them-and-attract-more-153187">increasing number of educators</a> are leaving the profession due to low pay, feeling undervalued and too much time spent on paperwork.</p>
<h2>Problems for early childhood educators</h2>
<p>More than 150,000 educators and teachers <a href="https://www.acecqa.gov.au/sites/default/files/2021-04/WorkforceStrategy-ConsultationPaper-2021.pdf">work in the early childhood education and care</a> sector. Most of the sector’s workforce are certificate III and diploma qualified educators, but an increasing proportion are degree-trained teachers. </p>
<p>In 2019, <a href="https://www.acecqa.gov.au/sites/default/files/2021-04/WorkforceStrategy-ConsultationPaper-2021.pdf">workforce projections</a> for the five years to May 2024 suggested the sector would need an additional 30,000 educators (a 20% increase) and 7,000 teachers (a 16% increase). </p>
<p>These projections do not take account the impact of COVID-19 and may not reflect the current conditions. The beginning of the pandemic — when parents started taking their children out of early childhood education — saw an <a href="https://www.abc.net.au/news/2020-10-22/qld-early-childhood-education-short-staffed-coronavirus/12743900">exodus of educators</a>. This was especially the case for casuals who weren’t eligible for JobKeeper.</p>
<p>Prior to the pandemic, the sector suffered from a <a href="https://journals.sagepub.com/doi/full/10.1177/0022185618800351">turnover rate of up to 30%</a> per year. This is compared to an <a href="https://www.ahri.com.au/media/1222/turnover-and-retention-report_final.pdf">average turnover of around 18%</a> in the general workforce. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/early-childhood-educators-are-leaving-in-droves-here-are-3-ways-to-keep-them-and-attract-more-153187">Early childhood educators are leaving in droves. Here are 3 ways to keep them, and attract more</a>
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<p>The majority of early childhood educators <a href="http://snapshots.acecqa.gov.au/workforcedata/index.html">earn less than</a> the national average of $1,460 per week. The <a href="http://snapshots.acecqa.gov.au/workforcedata/index.html">average annual salary</a> for an educator is $49,556 per year.</p>
<p>Our <a href="https://womensagenda.com.au/latest/what-researchers-are-learning-about-the-health-of-early-childhood-educators/">research with more than 70 Australian early childhood educators</a> found 60% feel emotional exhaustion at least once a month, and 20% at least once a week. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Child's hands in front of a painted rainbow." src="https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=368&fit=crop&dpr=1 600w, https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=368&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=368&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=463&fit=crop&dpr=1 754w, https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=463&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/400196/original/file-20210512-23-yx4uyx.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=463&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">The early childhood education and care sector needs an estimated additional 30,000 educators and 7,000 teachers by 2024.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/close-photo-childs-hands-touch-painting-1694662114">Shutterstock</a></span>
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<p>We also found the rates of physical injuries, including stress on the body and falls and slips, were higher among early childhood educators than the national average.</p>
<p>Psychologically and physically unhealthy work environments, and a <a href="https://journals.sagepub.com/doi/abs/10.1177/1836939120979064">lack of policy support</a>, play a key role in why childcare educators are leaving the sector.</p>
<h2>What we need to do</h2>
<p>These are all not new problems.</p>
<p>But responses to our <a href="https://www.facebook.com/EarlyChildhoodEducatorWellbeingProjectECEWP">recent online survey</a> show the additional pressures of COVID-19 have pushed the early childhood workforce to breaking point. One participant wrote:</p>
<blockquote>
<p>Being deemed essential during COVID, yet completely dismissed in terms of our own needs has been incredibly demeaning. The fact that this country relies on childcare to keep everyone working, yet doing nothing to keep educators safe or financially compensated has been insulting and degrading […] This is a systemic problem and it is wearing us down.</p>
</blockquote>
<p>Another said:</p>
<blockquote>
<p>The well-being of early childhood educators during the COVID crisis didn’t even reach the lowest rung on the priority ladder. It highlighted for me how undervalued we are in society and has been an integral factor in my decision to leave the sector.</p>
</blockquote>
<p>The <a href="https://www.ilo.org/sector/Resources/codes-of-practice-and-guidelines/WCMS_236528/lang--en/index.html">International Labour Organization</a>, which brings together governments, workers and employers to set labour standards, notes early childhood educators are central to realising universal provision of quality childhood education and care. </p>
<p>Making the early childhood workforce strong and sustainable must be seen as essential to the national interest.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1392262870436515840"}"></div></p>
<p>Workforce well-being is one of the focus areas of the proposed early childhood education and care <a href="https://www.acecqa.gov.au/sites/default/files/2021-04/WorkforceStrategy-ConsultationPaper-2021.pdf">National Workforce Strategy</a>. But the strategy only stresses increased supports once educators’ well-being is compromised, rather than helping to prevent it. </p>
<p>The strategy recognises service providers and management have clear responsibilities for educators’ well-being. But this also means every organisation must adhere to a consistent set of accountability measures.</p>
<p>To ensure all early childhood education workplaces support educators’ well-being, specific standards could be included in our existing <a href="https://www.acecqa.gov.au/national-quality-framework">National Quality Framework</a> for early childhood education and care. The quality of childcare centres themselves have improved due to having to meet certain standards in the framework. Educators’ well-being can be included as part of this overall quality.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/one-third-of-all-preschool-centres-could-be-without-a-trained-teacher-in-four-years-if-we-do-nothing-120099">One-third of all preschool centres could be without a trained teacher in four years, if we do nothing</a>
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</em>
</p>
<hr>
<p>Making the <a href="https://publications.ieu.asn.au/2020-march-bedrock/articles2/assessing-yourwork-environment/">work environment safer</a> might also decrease the alarmingly high rates of injury in the sector. This could lead to lower workers’ compensation premiums for businesses. </p>
<p>Schemes could be established so savings are shared between employers and employees in the form of increased wages. At the end of the day, early childhood education is a <a href="https://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---sector/documents/normativeinstrument/wcms_236528.pdf">public good</a>, so governments need to play a bigger role in finding solutions to these problems.</p>
<p>Implementing policy options such as these might mean cracks that are getting deeper might mend instead of completely giving way. If we really care about investing in the quality of early childhood education, we also need to invest in those who do the educating and caring.</p><img src="https://counter.theconversation.com/content/160610/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Rebecca Bull is currently (or has previously been) involved in research funded by the NSW Department of Education, the Department of Health (Commonwealth), and the Australian Institute for Teaching and School Leadership (AITSL).</span></em></p><p class="fine-print"><em><span>Sandie Wong is a Board Member of Northside Community Services. </span></em></p><p class="fine-print"><em><span>Laura McFarland and Tamara Cumming do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>If the government really wants to invest in early childhood education, it needs to back the workforce.Tamara Cumming, Senior Lecturer, Charles Sturt UniversityLaura McFarland, Senior Lecturer in Early Childhood Studies, Charles Sturt UniversityRebecca Bull, Professor, Macquarie UniversitySandie Wong, Associate professor, Macquarie UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1531872021-01-14T19:11:54Z2021-01-14T19:11:54ZEarly childhood educators are leaving in droves. Here are 3 ways to keep them, and attract more<figure><img src="https://images.theconversation.com/files/378496/original/file-20210113-19-16uo48i.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/stressed-nursery-teacher-classroom-she-sitting-447228703">Shutterstock</a></span></figcaption></figure><p>Childcare centres across Australia are <a href="https://www.theaustralian.com.au/nation/concern-over-the-quality-of-childcare-due-to-staff-shortage/news-story/bfe1c60096f8f15bf856ad38797d8dec">suffering staff shortages</a>, which have been exacerbated by the COVID crisis.</p>
<p>Many childcare workers across Australia left when parents started pulling their children out of childcare due to the pandemic, especially <a href="https://www.abc.net.au/news/2020-10-22/qld-early-childhood-education-short-staffed-coronavirus/12743900">casuals not eligible for JobKeeper</a>. And when the federal government introduced its temporary free childcare package, centres struggled to get the staff back.</p>
<p>The situation is not new. In <a href="http://thespoke.earlychildhoodaustralia.org.au/one-five-early-childhood-educators-plan-leave-profession/">a 2016 survey</a> of 1,200 early childhood educators and teachers in childcare centres and preschools across Australia, one in five said they planned to leave their job within a year. The reasons included low pay, feeling undervalued and increasing time spent on paperwork. </p>
<p>And a survey conducted in 2019 showed <a href="https://www.heraldsun.com.au/education/early-years/fears-of-early-educator-shortage-risk-3yo-kinder-rollout/news-story/d2e54b7ebbebbb83051d2ccb38bf2bd1#:%7E:text=Two%20in%20three%20Victorian%20childhood,old%20kinder%20rollout%20in%20jeopardy.&text=The%20State%20Government's%20three%2Dyear,6000%20additional%20teachers%20and%20educators.">up to two in three early childhood educators</a> in Victoria were considering leaving their role. High staff turnover — of <a href="https://journals.sagepub.com/doi/full/10.1177/0022185618800351">up to 30%</a> — is an enduring problem in early childhood services.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/covid-19-what-closing-schools-and-childcare-centres-would-mean-for-parents-and-casual-staff-133768">COVID-19: what closing schools and childcare centres would mean for parents and casual staff</a>
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</p>
<hr>
<p>Whenever an educator leaves the sector, <a href="https://www.ncbi.nlm.nih.gov/books/NBK189908/">it’s a loss for children</a> that affects their learning and well-being. Staff turnover also means more public money needs to be spent training new workers. </p>
<p>Based on unpublished Mitchell Institute analysis of <a href="https://www.abs.gov.au/statistics/people/education/qualifications-and-work/latest-release">ABS census data</a>, just over half the educators who have gained early childhood certificates since 2012 (when qualification requirements were introduced) are still working in relevant jobs. In comparison, almost all of those who completed vocational certificates in building are still in relevant roles.</p>
<p>To address workforce issues in the sector, Australian governments are developing a <a href="https://www.acecqa.gov.au/national-workforce-strategy">National Early Childhood Workforce Strategy</a>, due for release in the latter half of 2021. It’s more important than ever before to get this right. </p>
<p>A <a href="https://www.vu.edu.au/mitchell-institute/early-childhood-education/every-early-childhood-educator-matters">report from the Mitchell Institute </a> shows three policy moves needed to retain and attract skilled educators to the sector.</p>
<h2>1. Early childhood careers need to be valued</h2>
<p>Teaching and caring for young children is complex, and requires people with the right training and qualifications. <a href="https://journals.sagepub.com/doi/full/10.3102/0034654319837540">Qualified educators provide better-quality education and care</a>, which benefits children’s learning and development, as numerous international studies have shown.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Childhood educator helping children play." src="https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/378750/original/file-20210114-21-u9jkni.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Most early childhood educators are paid below the Australian average gross weekly earnings.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/some-kindergarten-nursery-kids-on-table-392082484">Shutterstock</a></span>
</figcaption>
</figure>
<p>Yet, most early childhood educators are <a href="https://www.acecqa.gov.au/sites/default/files/2020-10/ChildrensEducationandCareNationalWorkforceStrategy_0.pdf">paid well below the Australian average gross weekly earnings</a>. Educators with vocational certificates are the lowest paid, and <a href="https://doreenblyth.org/2020/11/29/a-professional-career-structure-we-need-to-start-the-discussions-to-get-it-built/">earn less for doing skilled work with children</a> than a trainee working in a call centre.</p>
<p>These educators are vital to the sector’s survival: they make up <a href="https://docs.education.gov.au/system/files/doc/other/2016_ecec_nwc_national_report_sep_2017_0.pdf">almost 40%</a> of the early childhood workforce, working alongside colleagues with diplomas and degrees.</p>
<p>Recent gains have been made in some states. Victoria has introduced a <a href="https://www.theage.com.au/politics/victoria/best-paid-victorian-kinder-teachers-to-earn-more-than-school-teachers-20201126-p56i9e.html#:%7E:text=Salary%20increases%20of%20up%20to,teachers%20at%20every%20pay%20level.">pay increase of up to 31%</a> for qualified preschool teachers. But this only covers a small proportion of the <a href="https://docs.education.gov.au/system/files/doc/other/2016_ecec_nwc_national_report_sep_2017_0.pdf">around 50,000 educators</a> in the state. </p>
<p>More people using early childhood education and care services, and governments lifting the bar for quality, means Australia will still need to recruit <a href="https://joboutlook.gov.au/occupations/early-childhood-pre-primary-school-teachers?occupationCode=2411">6,800 degree-qualified early childhood teachers</a> to 2024, as well as <a href="https://joboutlook.gov.au/occupations/child-carers?occupationCode=4211">over 30,000 more educators</a> with vocational diplomas and certificates. This will only happen if all educators are valued, and have opportunities for rewarding careers.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/one-third-of-all-preschool-centres-could-be-without-a-trained-teacher-in-four-years-if-we-do-nothing-120099">One-third of all preschool centres could be without a trained teacher in four years, if we do nothing</a>
</strong>
</em>
</p>
<hr>
<h2>2. Educator well-being needs to matter too</h2>
<p>COVID-19 has been tough on early childhood educators’ well-being. While <a href="https://research.acer.edu.au/cgi/viewcontent.cgi?article=1008&context=workforce">school teachers had it tough</a> with the transition to remote learning, early childhood educators also had to contend with rapid changes to policy, funding and work arrangements, as governments worked to keep the sector afloat.</p>
<p>The well-being of educators matters to children’s learning. Recent <a href="https://wehearyou.acecqa.gov.au/2019/11/22/educator-wellbeing/">Australian research</a> shows that educators with greater well-being can better respond to children in playful, educational ways that support their learning and development. Educators need support for their physical health and well-being, especially given the challenges of <a href="https://www.coronavirus.vic.gov.au/early-childhood-education-and-care">maintaining COVID-safe environments</a>. </p>
<p>Early childhood educators have <a href="https://www.thefrontproject.org.au/images/downloads/Early_learning_and_COVID19_experiences_of_teachers_and_educators.pdf">experienced many stressors during the pandemic</a>. Many have worked hard to adapt their services to the changing needs of children and families, whose lives were turned upside down. Others have experienced financial insecurity themselves, or uncertainty about their future employment.</p>
<p>Under any circumstances, educators need support to cope with the <a href="https://www.childforum.com/research/nz-international-early-childhood-education-journal-2017-educators-teachers-work-issues/1478-early-childhood-teachers-emotional-labour.html">emotional labour</a> of working with young children, and putting their heart into their job. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/378499/original/file-20210113-17-1wmrod7.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Skilled early childhood educators make a demonstrable difference to children’s learning.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/little-children-kindergarten-teacher-drawing-table-1448769377">Shutterstock</a></span>
</figcaption>
</figure>
<p>Research shows <a href="https://link.springer.com/article/10.1007/s10833-020-09382-3">one way to boost retention</a> and well-being for early childhood educators is to have meaningful career paths and supportive workplace cultures. While <a href="https://www.dese.gov.au/uncategorised/resources/2013-national-early-childhood-education-and-care-workforce-census-report">80% of educators feel supported by their managers</a>, low wages and limited access to professional development and promotion constrain educators’ careers. </p>
<p>Expert educators need <a href="https://www.vu.edu.au/sites/default/files/every-educator-matters-mitchell-institute-report.pdf">more opportunities to become mentors and leaders</a>, to motivate them to stay in the sector and inspire new educators to learn. </p>
<h2>3. Streamline funding responsibility</h2>
<p>The reason it’s so hard to get educators’ pay and conditions right is that the money comes from different sources. </p>
<p>Governments pay around half the total cost of early childhood services, mainly through the childcare subsidy from the Australian government that helps families pay fees. State governments also contribute to preschool. Families pay the remainder of the fees, with many paying <a href="https://www.vu.edu.au/sites/default/files/australian-investment-in-education-ecec-report-mitchell-institute.pdf">more for early childhood services than they would for private schools</a>. </p>
<p>Employers ultimately make decisions about how much to pay their staff, within various industrial agreements.</p>
<p>This means educators’ wages and conditions are everybody’s problem and nobody’s problem. Former Education Minister Dan Tehan has said <a href="https://www.abc.net.au/news/2020-10-22/qld-early-childhood-education-short-staffed-coronavirus/12743900">paying educators more is up to employers</a>. Employers and unions argue governments need to contribute more funding to the sector before educators’ wages can increase. </p>
<p>Families are already stretched, and passing costs on to them seems unthinkable in the current economic climate. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/increasing-the-childcare-subsidy-will-help-struggling-families-and-the-economy-142557">Increasing the childcare subsidy will help struggling families — and the economy</a>
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</p>
<hr>
<p>Similar problems arise in determining who pays for improvements to educators’ conditions, such as making sure they have enough time for professional development (something few currently receive).</p>
<p>Government funding to early childhood services needs to be high enough to support fair wages, and delivered in a way that ensures it is spent well. With different funding models in each state, and thousands of employers, it won’t be easy to design a system that works for everyone. But governments have a responsibility to Australian families to ensure all educators are paid enough to stay.</p>
<p>Can Australia get this right in 2021? Maybe – in 2020, <a href="https://www.attorneygeneral.gov.au/media/media-releases/government-unions-and-employers-come-together-coronavirus-talks-8-march-2020">governments, employers and unions worked together</a> on some of the most critical workforce challenges Australia has faced. Perhaps the education and care of our children will be important enough to bring them together again.</p><img src="https://counter.theconversation.com/content/153187/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jen Jackson has previously undertaken a range of research on early childhood education and care funded by the Australian Research Council and various government bodies.</span></em></p>One in five early childhood educators said they planned to leave their job within a year. It is vital we design a system and policies to ensure there are enough to meet the demand.Jen Jackson, Program Director, Centre for Policy Development, and Associate Professor of Education, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1502642020-11-17T04:56:56Z2020-11-17T04:56:56ZThe child-care sector needs an overhaul, not more tinkering with subsidies and tax deductions<figure><img src="https://images.theconversation.com/files/369729/original/file-20201117-21-155tbr6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/close-photo-childs-hands-touch-painting-1694662114">Shutterstock</a></span></figcaption></figure><p>Recent reports <a href="https://www.smh.com.au/politics/federal/government-mps-put-tax-deductions-for-childcare-fees-on-the-table-20201115-p56epj.html">suggest several Liberal MPs</a> are calling for child-care costs to be tax-deductible. They argue allowing families who can’t access subsidies to claim child-care costs as a tax deduction would boost women’s workforce participation and productivity. </p>
<p>They also say it would give greater choice to families whose working hours aren’t suited to mainstream centre-based child care. </p>
<p>The proposal draws on <a href="https://newsroom.unsw.edu.au/news/business-law/vital-signs-untaxing-childcare-bold-idea-seems-unfair-might-benefit-us-all">research and modelling by the UNSW New Economic Policy Initiative</a>. The policy report, published in November 2019, suggests <a href="https://theconversation.com/vital-signs-untaxing-childcare-is-a-bold-idea-that-seems-unfair-but-might-benefit-us-all-127430">families</a> be given a choice between continuing to receive their current child-care subsidy, or opting instead to pay fees up front and claim them as a tax deduction.</p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/vital-signs-untaxing-childcare-is-a-bold-idea-that-seems-unfair-but-might-benefit-us-all-127430">Vital Signs. Untaxing childcare is a bold idea that seems unfair, but might benefit us all</a>
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<hr>
<p>Both Labor and the Coalition appear to be focused primarily on child-care affordability and encouraging parents to work more. But tinkering with subsidies risks making a complex system even more complicated, and detracting attention from quality, which matters to children.</p>
<h2>Tax deductions versus increasing subsidies</h2>
<p>The UNSW policy proposal aims to address concerns raised by the <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-volume1.pdf">Productivity Commission</a> in a 2014 report, which found:</p>
<blockquote>
<p>[…] tax deductions or rebates are not an effective means of support for lower and middle income families who, in the absence of ECEC [early childhood education and care] assistance, are likely to have the greatest difficulty affording care. </p>
</blockquote>
<p>In the policy, because families would choose what’s best for them — either a tax deduction or the use of a subsidy — the idea is no family would be worse off. </p>
<p>But the benefits of opting into tax-deductible child care still wouldn’t be evenly distributed if the Liberals adopted the policy. According to the <a href="https://b536ef95-d95a-41ab-8ea2-86d91525afdc.filesusr.com/ugd/d1755c_97605ce5b7544f689ea68a261859bd23.pdf">UNSW modelling</a>, households with the highest incomes would benefit most from the policy, saving around A$1,080 per year more compared with their current spending on child care. Families on lower incomes could save around $618 compared to what they’re currently spending.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=316&fit=crop&dpr=1 600w, https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=316&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=316&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=397&fit=crop&dpr=1 754w, https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=397&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/369719/original/file-20201117-21-iwtc57.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=397&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The figure above shows the annual benefit for (couple) households by quantile.</span>
<span class="attribution"><a class="source" href="https://b536ef95-d95a-41ab-8ea2-86d91525afdc.filesusr.com/ugd/d1755c_97605ce5b7544f689ea68a261859bd23.pdf">Source: (Un)Taxing Child-care: Boosting Choice and Labour Supply through Subsidised & Tax-Deductible Child-care in Australia, University of NSW. </a></span>
</figcaption>
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<p>Families on lower incomes would be also be less likely to opt into the tax deduction. Even if they were to save as a result of it, they would be less able to pay full child-care fees up front.</p>
<p>On the other hand, <a href="https://www.abc.net.au/news/2020-10-09/labor-anthony-albanese-budget-families-child-care-plan/12746010">Labor’s proposal</a> for early childhood education and care focuses on low-income families first, by extending the subsidy. It <a href="https://theconversation.com/labors-childcare-plan-may-get-more-women-into-work-now-what-about-quality-and-educators-pay-147755">would increase</a> the maximum child-care subsidy from 85% to 90% for the lowest-income families in the short term, with a long-term plan of increasing the subsidy to that rate for all families.</p>
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Read more:
<a href="https://theconversation.com/labors-childcare-plan-may-get-more-women-into-work-now-what-about-quality-and-educators-pay-147755">Labor's childcare plan may get more women into work. Now what about quality and educators' pay?</a>
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<p>Labor would also scrap the annual $10,560 subsidy cap for households earning between $189,390 and $353,680 a year. Education Minister Tehan argued Labor’s plan would benefit higher-income families at the expense of the more disadvantaged. He said in the long run it <a href="https://www.smh.com.au/politics/federal/it-s-terrible-high-childcare-fees-are-keeping-mothers-out-of-work-20201011-p5640j.html">would result</a> in “a family in Townsville […] subsiding the child-care fees of a millionaire living in Sydney”.</p>
<p>This is because Labor’s plan would increase subsidies for all families, compared with the current system which is means-tested and requires families on the highest incomes to pay full child-care fees.</p>
<p>The UNSW report authors write:</p>
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<p>One potential objection to this two-pronged approach is that it would benefit high-income earners. There are, however, three important answers to this: first, it ignores the actual distribution of the likely benefits of the policy; second, it misconceives the nature of the policy (as welfare— rather than productivity-focused); and third, it ignores the significant gender equality and fairness arguments in favour of the policy.</p>
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<p>The evidence actually suggests both policy options — an increase to the child-care subsidy and the policy some Liberal backbenchers are calling for – would likely pay for themselves. <a href="https://mckellinstitute.org.au/app/uploads/Child-Care-Subsidy-FINAL.pdf">Economic modelling of various options for down payments</a> towards a universal child-care subsidy indicates a return on investment of more than 100%. This is the same as <a href="https://newsroom.unsw.edu.au/news/business-law/vital-signs-untaxing-childcare-bold-idea-seems-unfair-might-benefit-us-all">modelling of the combined child-care subsidy and tax-deduction system</a>.</p>
<h2>More ambitous, child-focused reform</h2>
<p>Whether the policy benefits high-income or low-income families matters, but it also misses the point — early childhood policies need to focus on what benefits children. </p>
<p>With over <a href="https://www.vu.edu.au/sites/default/files/educational-opportunity-in-australia-2020.pdf">one in five children still developmentally vulnerable</a> when they start school, Australia needs to be talking about how early childhood services can support children to learn and thrive. </p>
<p>This support needs to be available to all children, irrespective of their parents’ incomes. </p>
<p><a href="https://www.thefrontproject.org.au/images/downloads/ECO%20ANALYSIS%20Full%20Report.pdf">Research shows</a> that for every dollar invested in early childhood education, $2 is returned into the economy. Evidence also shows that while <a href="https://www.ucl.ac.uk/ioe/research-projects/2020/sep/effective-pre-school-primary-and-secondary-education-project-eppse">all children benefit from early education,</a> children from the most disadvantaged backgrounds stand to gain the most. </p>
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Read more:
<a href="https://theconversation.com/report-finds-every-1-australia-spends-on-preschool-will-return-2-but-this-wont-just-magically-happen-120217">Report finds every $1 Australia spends on preschool will return $2, but this won't just magically happen</a>
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<p>But these benefits are reliant on high-quality, play-based learning supported by skilled, warm and responsive educators. </p>
<p>Parental workforce participation is <a href="https://grattan.edu.au/news/why-cheaper-childcare-is-good-economics/">important for economic growth</a>, but the <a href="https://heckmanequation.org/resource/4-big-benefits-of-investing-in-early-childhood-development/">long-term benefits to children’s learning and development</a> can pay even greater dividends. </p>
<p>It’s great both parties are thinking about early childhood policy, but they need to start looking at the whole picture.</p><img src="https://counter.theconversation.com/content/150264/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Noble receives funding from the Minderoo Foundation as part of the Thrive by Five campaign, and funding from Early Childhood Australia.</span></em></p><p class="fine-print"><em><span>Sarah Pilcher receives funding from the Minderoo Foundation as part of the Thrive by Five campaign, and funding from Early Childhood Australia. </span></em></p>Whether the policy benefits high-income or low-income families matters, but it also misses the point — early childhood policies need to focus on what benefits children.Kate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversitySarah Pilcher, Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1477552020-10-08T23:38:24Z2020-10-08T23:38:24ZLabor’s childcare plan may get more women into work. Now what about quality and educators’ pay?<p>Childcare was the centrepiece of <a href="https://www.smh.com.au/politics/federal/albanese-pledges-universal-childcare-subsidy-in-budget-reply-20201008-p563ea.html">last night’s budget reply speech</a> from Leader of the Opposition Anthony Albanese.</p>
<p>He announced Labor’s plan to increase the maximum childcare subsidy from 85% to 90% and remove the annual cap on subsidies for families earning more than A$189,390 per year. This means families earning up to <a href="https://mckellinstitute.org.au/app/uploads/Child-Care-Subsidy-FINAL.pdf">$80,001 would have their subsidy increased by 5%</a> and most families earning more would have their subsidy increased slightly. </p>
<p>Removing the cap would benefit families on middle and high incomes. It currently limits childcare subsidy payments <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-income-can-affect-it#:%7E:text=Annual%20cap,-If%20your%20family&text=If%20your%20family%20earns%20between,per%20child%20each%20financial%20year.">to $10,560</a> per child per year, for families with a combined income between $189,390 and $353,680. </p>
<p>When the cap is reached for each child, but the family still needs to use childcare, they now pay 100% of the childcare fees in excess of the cap. This acts as a big deterrent to <a href="https://grattan.edu.au/news/childcare-wont-remain-free-after-the-pandemic-but-it-should-be-reformed/">increased parental workforce participation</a>.</p>
<p>For families where both parents work full time, or almost full time, Labor’s proposed measure would result in thousands of dollars saved per year. For parents needing or wanting to work more, and increase their childcare hours, Labor’s plan could make this affordable. </p>
<h2>The biggest news is the 90% universal subsidy</h2>
<p>The biggest news in Labor’s plan is a longer-term shift to a 90% subsidy for all Australian families. Currently, families with a combined income between $174,390 and $253,680 <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-income-can-affect-it">receive a 50% subsidy</a>. Families earning between $253,680 and $343,680 are subsidised between 20% and 50%. </p>
<p>These families would experience a significant reduction in fees, with exact amounts depending on the amount of childcare they use.</p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"1314124326791081984"}"></div></p>
<p>While Labor’s plan comes with a <a href="https://www.abc.net.au/news/2020-10-09/labor-anthony-albanese-budget-families-child-care-plan/12746010">$6.2 billion price tag</a> over four years, the McKell Institute estimates the subsidy boost would deliver a <a href="https://mckellinstitute.org.au/app/uploads/Child-Care-Subsidy-FINAL.pdf">return on investment of at least 100%</a>. This means all the money invested in the childcare measures would return into the economy via increased workforce participation and family spending. </p>
<p>Earlier Grattan Institute analysis also estimated <a href="https://www.smh.com.au/politics/federal/cheaper-childcare-could-boost-economy-by-11b-a-year-grattan-institute-20200806-p55j2d.html">high return on investment</a> from increases to childcare subsidies that get more families working.</p>
<p>If Labor win the next election, the scheme could be in place by as early as <a href="https://www.abc.net.au/news/2020-10-09/labor-anthony-albanese-budget-families-child-care-plan/12746010">July 2022</a>. This is major economic reform that could dramatically increase affordability of childcare in Australia. </p>
<h2>What’s missing from Labor’s announcement?</h2>
<p>The success of Labor’s plan hinges on making sure increased subsidies flow through to reduced costs for families. In the past, <a href="https://www.smh.com.au/politics/federal/childcare-package-all-but-gone-18-months-after-introduction-20200131-p53wlr.html">fee increases have offset the benefits of subsidy increases for many families</a>. To prevent this, <a href="https://anthonyalbanese.com.au/anthony-albanese-speech-budget-in-reply-parliament-house-canberra-thursday-8-october-2020">Labor plans to task the Australian Competition and Consumer Commission</a> with designing a mechanism to effectively regulate service prices. </p>
<p>The plan is also focused on affordability over quality. The benefits for children from early childhood education and care <a href="https://www.vu.edu.au/mitchell-institute/early-childhood-education/quality-is-key-in-early-childhood-education-in-australia">depend on services being good quality</a>, and providing play-based learning programs led by skilled educators. Close to <a href="https://www.acecqa.gov.au/sites/default/files/2020-08/NQFSnapshot_Q2May2020_1.pdf">one in five early childhood services</a> still do not meet quality standards, and vulnerable communities are <a href="https://minerva-access.unimelb.edu.au/handle/11343/112371">more likely to be served by lower quality services</a>. This means children who should benefit most from quality early learning are more likely to miss out. </p>
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<strong>
Read more:
<a href="https://theconversation.com/preschool-benefits-children-and-the-economy-but-the-budget-has-left-funding-uncertain-again-147737">Preschool benefits children and the economy. But the budget has left funding uncertain, again</a>
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<p>Labor’s plan also doesn’t address systemic problems such as poor pay and conditions for early childhood educators, who are <a href="https://theconversation.com/low-paid-womens-work-why-early-childhood-educators-are-walking-out-91402">among the worst paid in the country</a>, and who are critical to the delivery of high quality early education.</p>
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<a href="https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="Teacher with kids at childcare." src="https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/362558/original/file-20201008-24-1sjos7t.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Early childhood teachers are among the worst paid in the country.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-kindergarten-teacher-playing-music-little-635590394">Shutterstock</a></span>
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<h2>How does this compare with the Coalition’s plan?</h2>
<p>So far, the Coalition has put in place <a href="https://theconversation.com/not-much-relief-for-parents-but-new-childcare-measures-will-rescue-providers-again-146752">three rescue packages</a> to keep providers financially viable during the pandemic, and able to support children’s development and well-being as well as parents’ workforce participation. </p>
<p>While many have argued for temporary or <a href="https://www.tai.org.au/sites/default/files/Female%20participation%20with%20free%20childcare%20%5BWEB%5D%20%281%29.pdf">permanent continuation of fee-free care</a>, the Australian government has held fast with its intention to <a href="https://theconversation.com/childcare-is-critical-for-covid-19-recovery-we-cant-just-snap-back-to-normal-funding-arrangements-139027">“snap back”</a> to pre-COVID childcare arrangements, with some modifications for parents who’ve lost income or their jobs. </p>
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Read more:
<a href="https://theconversation.com/childcare-is-critical-for-covid-19-recovery-we-cant-just-snap-back-to-normal-funding-arrangements-139027">Childcare is critical for COVID-19 recovery. We can't just snap back to 'normal' funding arrangements</a>
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<p>A broad group of supporters — including unions, business groups, children’s and women’s advocates — saw this week’s budget as a <a href="https://thesector.com.au/2020/10/07/peak-bodies-respond-to-budget-announcement-a-missed-opportunity-to-support-ecec/">missed opportunity</a> to build a more sustainable plan for early childhood services. Many now understand how vital increased access to childcare could be in supporting Australian families (and particularly women) to make a strong recovery from the shocks of 2020.</p>
<p>Early childhood sector sources say the Coalition is <a href="https://thewest.com.au/politics/budget/federal-budget-2020-scott-morrison-says-childcare-reform-needed-but-must-be-sold-to-taxpayers-first-ng-b881687543z">planning a six-month public engagement campaign</a> to prepare for more reforms in next year’s budget. </p>
<h2>What about the Greens?</h2>
<p>The <a href="https://greens.org.au/sites/default/files/2020-05/Greens-Recovery-Plan.pdf">Greens’ economic recovery plan</a> has a strong focus on growing the care economy, and includes a commitment to continue fee-free childcare permanently. They advocate major reform towards a system similar to <a href="https://www.smh.com.au/education/looking-to-swedish-model-of-childcare-and-education-20150518-gh48hj.html#:%7E:text=In%20Sweden%2C%20childcare%20and%20education,from%20the%20age%20of%20one.">Sweden’s “Educare” model</a>, which provide 525 hours per year for free from three years of age, and the design of which was driven by gender equality principles. </p>
<p><a href="https://thesector.com.au/2020/06/08/free-childcare-to-come-to-an-end-as-dan-tehan-confirms-return-to-ccs-roadmap/">A brief stint of free childcare</a>, where parent fees were suspended and covered by the federal government, gave many a taste of what a different funding model could mean for Australian families, and for the economy. </p>
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Read more:
<a href="https://theconversation.com/increasing-the-childcare-subsidy-will-help-struggling-families-and-the-economy-142557">Increasing the childcare subsidy will help struggling families — and the economy</a>
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<p>The events of 2020 have caused many of us to question old assumptions, and to value things we previously took for granted. </p>
<p>Many Australians — regardless or where they live or their politics — are now realising early childhood services are actually a critical piece of social and economic infrastructure. They’re the scaffolding that supports parents to contribute to our society and economy in meaningful ways, and provides children with the early education they need to get the best start.</p>
<p>What a difference a year makes.</p><img src="https://counter.theconversation.com/content/147755/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Noble has previously received funding from the Victorian Curriculum Assessment Authority.</span></em></p><p class="fine-print"><em><span>Jen Jackson has previously undertaken a range of research on early childhood education and care funded by the Australian Research Council and various government bodies.</span></em></p><p class="fine-print"><em><span>Sarah Pilcher does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Labor’s proposed childcare measure would result in thousands of dollars saved per year. And it will make it affordable for parents who want to work more while accessing childcare.Kate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversityJen Jackson, Education Policy Lead, Mitchell Institute, Victoria UniversitySarah Pilcher, Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1467522020-09-27T19:59:44Z2020-09-27T19:59:44ZNot much relief for parents, but new childcare measures will rescue providers (again)<p>Childcare will reopen to all Melbourne families <a href="https://www.abc.net.au/news/2020-09-06/victoria-melbourne-school-childcare-return-covid-restrictions/12634738">this week</a>, as the Australian government’s <a href="https://ministers.dese.gov.au/tehan/child-care-support-continues-aid-covid-recovery">latest childcare support package</a> comes into effect. Education Minister Dan Tehan has pledged: </p>
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<p>an additional A$305.6 million for families and childcare providers to deliver hip pocket relief and ensure the sector remains open to help drive the COVID-19 recovery.</p>
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<p>Most of the measures are designed to keep afloat Victorian service providers suffering financially due to lockdown (especially in Melbourne). Childcare — increasingly recognised as an essential service — has now effectively received <a href="https://www.theguardian.com/commentisfree/2020/aug/04/now-would-be-a-good-time-to-admit-australias-childcare-system-is-not-fit-for-purpose">three rescue packages in less than 12 months</a>. </p>
<p>Some of the measures will also affect families, but this depends on circumstances such as where they live and what kind of service their children attend. </p>
<h2>I’m a childcare provider. How will recovery payments help me?</h2>
<p>The government introduced payments of at least 25% of pre-COVID revenue to approved Australian childcare services when the previous relief package and Jobkeeper ended for the sector. These payments are known as “transition payments”.</p>
<p>They were a lifeline for Melbourne services while only children of permitted workers and vulnerable children were attending (and paying fees). </p>
<p>These payments were due to end on September 28, but have now been extended for Victorian services only to January 31, 2021. </p>
<p>An additional 15% top-up payment will be provided to out of school hours care (OSHC) providers when schools open to more students. This is currently scheduled to happen in week two of term four (from October 12). </p>
<p>This top-up means OSHC providers’ payments will equal around 40% of their pre-pandemic revenue, recognising they have been hit particularly hard by the lockdown.</p>
<p>Payments to services won’t impact directly on fees for parents. But they will mean their service is more likely to remain financially viable, and open for children to attend when they open up to all families in September and October.</p>
<h2>I’m a parent. Will fees change?</h2>
<p>The fee freeze makes for <a href="https://www.heraldsun.com.au/news/victoria/new-package-provides-support-to-parents-struggling-to-pay-childcare-fees-because-of-coronavirus/news-story/56bd948e4a0f8c9ebcf0124fc56ed605">a good headline</a> promising more help for parents but it’s difficult to say how much difference it will really make. </p>
<p>Fee freezes might save some families <a href="https://www.heraldsun.com.au/education/childcare-and-kinder-fees-hike-for-most-melbourne-councils/news-story/1075c018edde23cf7f042de0087c0fde">up to A$5 per day</a>, per child. But these aren’t savings on their current spending, it just means they’re being shielded from a planned fee hike. Parents using childcare shouldn’t face any fee hikes until January 31 at the earliest.</p>
<p>Whether families actually save anything at all depends on where they live and what provider they use. </p>
<p>Some local councils in Melbourne had already <a href="https://www.heraldsun.com.au/education/childcare-and-kinder-fees-hike-for-most-melbourne-councils/news-story/1075c018edde23cf7f042de0087c0fde">committed to no fee increases</a>. Fees at childcare centres that are <em>not</em> run by councils, however, are determined by individual providers. They decide whether and how much to increase fees, so parents’ savings will vary significantly. </p>
<p>Parents with children in four-year-old sessional kindergarten will be saving on fees, with the Victorian government (which co-funds kindergarten with the federal government) committing to <a href="https://www.abc.net.au/news/2020-09-17/victorian-parents-to-get-free-kinder-for-term-four/12672902">free kinder for term four</a>.</p>
<h2>Will childcare centres lose staff or reduce hours?</h2>
<p>The federal government’s <a href="https://www.dese.gov.au/covid-19-restrictions-and-early-childhood-education-and-care-sector">employment guarantee</a>, which has been extended along with transition payments, is a big issue for educators and carers.</p>
<p>The government has made it clear it <a href="https://www.dese.gov.au/covid-19-restrictions-and-early-childhood-education-and-care-sector">expects</a> childcare providers receiving transition payments not to stand down educators or make them redundant, even where there is reduced need for staff.</p>
<p>However, it’s possible for childcare centre managers to reduce shifts significantly. For example, under the July transition payment arrangements, centre managers were only required to offer more than one shift to their workers over a period of ten weeks. </p>
<p>More than three quarters of the early childhood centre workforce is <a href="https://data.wgea.gov.au/industries/8">casual or part-time</a>, so many Melbourne childcare workers are likely to face significant income reductions.</p>
<p>Despite the employment guarantee, there have been reports of Melbourne educators being <a href="https://www.theage.com.au/national/victoria/jobkeeper-plea-for-childcare-workers-locked-out-of-work-in-lockdown-20200821-p55o34.html">stood down</a>.</p>
<h2>I’m a parent. How will changes to the Activity Test affect me and my subsidy?</h2>
<p>The federal government’s “<a href="https://www.education.gov.au/child-care-subsidy-activity-test">Activity Test</a>” links how much time parents spend in work, education or training with the level of childcare subsidy. Parents working and studying less can only access a limited number of subsidised hours of childcare.</p>
<p>But the Activity Test was eased in July, meaning that if parents’ income has been impacted by COVID-19, they can still get the same or more childcare subsidy even if they were working or studying less. This measure has now been extended to April 4, 2021. </p>
<p>But parents will still have to meet the gap fees (the difference between fees charged by providers and subsidies paid by the government). For those really struggling, <a href="https://www.abc.net.au/news/2020-06-17/childcare-fee-return-unaffordable-for-some-parents/12362072">it may be difficult to keep paying fees</a> if one parent is at home and able to care for children. </p>
<p>Children from disadvantaged backgrounds <a href="https://heckmanequation.org/resource/invest-in-early-childhood-development-reduce-deficits-strengthen-the-economy/">benefit most from high quality</a> early learning, and are <a href="https://www.vu.edu.au/mitchell-institute/educational-opportunity/early-years-gaps-in-educational-opportunity-evident-at-school-entry">more likely to start school developmentally vulnerable</a>. Temporarily easing the activity test is unlikely to keep the lowest income families engaged.</p>
<h2>I’m a parent and I lost my job. Can I get free childcare?</h2>
<p>Parents who’ve lost their jobs may also be eligible for free childcare temporarily. <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/additional-child-care-subsidy/how-apply/applying-during-temporary-financial-hardship">Application</a> for the <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/additional-child-care-subsidy">Additional Childcare Subsidy</a> must be made through Centrelink. </p>
<p>Although not included in the government’s announcement, this provision could be vital in helping families to keep their children connected with early education and care, providing children with <a href="https://theconversation.com/children-learn-through-play-it-shouldnt-stop-at-preschool-126921">stability and much-needed fun, and supporting their development and learning</a> while families recover.</p><img src="https://counter.theconversation.com/content/146752/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Noble volunteers with the Australian Conservation Foundation. </span></em></p>Whether families actually save anything at all depends entirely on where they live, and what provider they use.Kate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1425572020-07-16T20:06:17Z2020-07-16T20:06:17ZIncreasing the childcare subsidy will help struggling families — and the economy<figure><img src="https://images.theconversation.com/files/347827/original/file-20200716-31-ldlfsn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/1078168355">Shutterstock</a></span></figcaption></figure><p>In April, the federal government put in place an <a href="https://theconversation.com/free-child-care-to-help-nearly-one-million-families-especially-workers-in-essential-services-135439">emergency relief package</a> to support families and operators in the early childhood education and care sector, as many people pulled their children out of childcare. </p>
<p>The government provided centres with around 50% of their revenue based on enrolment numbers between February 17 and March 2, on the basis parents weren’t charged any fees. Services were also able to access JobKeeper for eligible employees.</p>
<p>This <a href="https://www.theguardian.com/australia-news/2020/jul/13/free-childcare-ends-as-tax-refunds-start-rolling-out-to-millions-of-australians">package came to an end on Monday</a>. Parents will now resume paying fees and the government will resume paying the childcare subsidy.</p>
<p>There is additional flexibility for parents in metropolitan Melbourne and Mitchell shire – the Victorian areas under stage 3 restrictions – where services can temporarily waive fees for parents if children are not attending care.</p>
<p>There will also be a transition period across the country. JobKeeper payments will cease and be replaced by a transition payment for services — 25% of their February revenue. </p>
<p>But going back to pre-COVID-19 settings — even with modifications — is risky.
Australia’s existing childcare subsidy system is not fit-for-purpose in the context of COVID-19.</p>
<p><a href="https://www.vu.edu.au/mitchell-institute/early-childhood-education/increasing-childcare-subsidies-would-support-children-families-the-economy">Our analysis</a> shows many families who have lost income or jobs will be worse off when the subsidy system restarts. Many parents have relied on fee-free childcare to keep children engaged in early learning and maintain stability throughout the crisis. </p>
<p>A <a href="https://d3n8a8pro7vhmx.cloudfront.net/theparenthood/pages/20/attachments/original/1590987325/200601_-_Full_survey_data_case_against_snap_back_MR.pdf?1590987325">survey conducted in May</a> found 42% of families were experiencing income loss. Of these, nearly two-thirds would need to reduce childcare days or remove their child altogether from early learning once parent fees were reintroduced. </p>
<p>Our analysis shows the government should increase the childcare subsidy for families on low to medium incomes — either temporarily or permanently. This would involve increasing the highest subsidy rate from 85% to 95%. </p>
<p>Families on a combined income under $173,163 would benefit, with those on the lowest incomes benefiting most.</p>
<h2>The high costs of childcare</h2>
<p>Before COVID-19 hit, early childhood education and care in Australia was already bordering on unaffordable. Fees absorb nearly <a href="https://data.oecd.org/benwage/net-childcare-costs.htm">one-fifth of many families’ household incomes</a>.</p>
<p>Even after government subsidies, many parents pay <a href="https://www.vu.edu.au/mitchell-institute/early-childhood-education/parents-spend-more-on-childcare-than-on-private-school">more to have a child in early learning</a> than they would to send a child to a private primary school.</p>
<p>So far, the government has announced several small changes to the pre-COVID arrangements once fees resume.</p>
<p>There will be a temporary easing of the activity test for 12 weeks from July 13. This means families working and studying less can access more hours of subsidised childcare. But they’ll still need to pay at least 15% of childcare fees.</p>
<p>The additional childcare subsidy also provides temporary free childcare to families experiencing significant financial hardship. But it is unclear who will be eligible, and current data shows that <a href="https://www.theguardian.com/australia-news/2020/jul/15/coalition-urged-to-cut-delays-for-struggling-parents-as-childcare-fees-reintroduced">processing times can be lengthy</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/347227/original/file-20200714-46-h0frri.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Without early learning, or disruption to it, children are at risk of educational delay.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-preschool-age-children-play-colorful-458347303">Shutterstock</a></span>
</figcaption>
</figure>
<p>The <a href="https://www.servicesaustralia.gov.au/individuals/services/centrelink/additional-child-care-subsidy">additional childcare subsidy</a> provides temporary free childcare and remains available for families experiencing temporary financial hardship.</p>
<p>While these measures will help some families, they are unlikely to be enough to counter the unprecedented economic impact of the COVID-19 crisis. Vast numbers will be faced with a decision on whether they can afford to keep their child engaged in early education and care.</p>
<p>And we know children removed from early learning, or with only intermittent access to it, face disruption to their routine, and possibly developmental and educational delays.</p>
<h2>So, what are the options?</h2>
<p>Some have argued for an overhaul of the childcare system to <a href="https://www.theguardian.com/commentisfree/2020/may/20/snapping-back-to-the-childcare-subsidy-method-is-nuts-it-should-not-be-a-system-that-profits">make childcare permanently free</a>. One of the main barriers to this is cost. <a href="https://grattan.edu.au/news/childcare-wont-remain-free-after-the-pandemic-but-it-should-be-reformed">Estimates</a> suggest this would cost in excess of A$24 billion per year, compared with the <a href="https://www.vu.edu.au/sites/default/files/australian-investment-in-education-ecec-report-mitchell-institute.pdf">current cost of around $8 billion per year</a>.</p>
<p>Others have pushed for a <a href="https://www.smh.com.au/national/women-executives-demand-three-month-extension-of-free-childcare-20200529-p54xlt.html">temporary extension of fee-free care</a>, arguing it would support women and families financially and reduce risks for women in unsafe home situations.</p>
<p>Another option is a universal entitlement of up to 20 hours of free care per week, to ensure access for all children, while allowing parents to pay for additional hours above the entitlement. This policy recognises children’s right to early learning, and would be more straightforward than our current complex arrangements. </p>
<p>We argue an equitable and cost-effective option is to increase the subsidy for families on a combined income of A$68,163 from 85% to 95%, tapering to 50% for families with a combined income of $173,163. </p>
<p>The <a href="https://grattan.edu.au/news/childcare-wont-remain-free-after-the-pandemic-but-it-should-be-reformed/">Grattan Institute estimates</a> increasing the highest rate of the childcare subsidy to 95% would cost an additional A$5 billion per year.</p>
<p>Our analysis shows this could save low-income families close to half of their current childcare fees, making it easier for struggling families to keep their children engaged in early learning. </p>
<p>This would provide a triple dividend by supporting children’s access to early learning, putting more money back into family budgets and supporting economic recovery.</p>
<p>Beyond 2020, an ambitious and fair reform agenda aimed at improving educational outcomes and reducing inequality should consider a range of policy options.</p>
<p>But for now, increasing subsidy rates for low to medium income families is the best way to support access for children, parents’ workforce participation and economic recovery — as well as ensure the sector’s survival.</p>
<p>It’s a small investment to remove some of the pressure on Australian families, and our youngest children, at this very challenging time.</p><img src="https://counter.theconversation.com/content/142557/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The government should increase the childcare subsidy for families on low to medium incomes — either temporarily or permanently. This would involve increasing the highest subsidy rate from 85% to 95%.Sarah Pilcher, Policy Fellow, Mitchell Institute, Victoria UniversityKate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1422752020-07-13T20:02:32Z2020-07-13T20:02:32ZWe need a new childcare system that encourages women to work, not punishes them for it<figure><img src="https://images.theconversation.com/files/346786/original/file-20200710-34-19t9ud5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mother-two-little-boys-on-his-1770664667">Shutterstock</a></span></figcaption></figure><p>In previous recessions in Australia, far larger numbers of men than women <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/4102.0Main+Features20Mar+2010">lost their jobs</a>. This reflected realities at that time. Men had higher levels of workforce participation than women, and the construction and manufacturing industries were particularly hard hit.</p>
<p>But in 2020, the composition of the workforce has changed. While far from even, today, women’s participation in the economy sits at <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/4125.0">61% compared to 71% for men</a>. </p>
<p>Recent <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6160.0.55.001Main%20Features3Week%20ending%2013%20June%202020?opendocument&tabname=Summary&prodno=6160.0.55.001&issue=Week%20ending%2013%20June%202020&num=&view=">payroll statistics</a> show both men and women are losing their jobs in the pandemic, although women were particularly hard hit in its early stages.</p>
<hr>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=258&fit=crop&dpr=1 600w, https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=258&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=258&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=324&fit=crop&dpr=1 754w, https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=324&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/347013/original/file-20200713-26-16crami.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=324&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Change in payroll jobs by sex since March 14, 2020.</span>
<span class="attribution"><a class="source" href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6160.0.55.001Main%20Features3Week%20ending%2013%20June%202020?opendocument&tabname=Summary&prodno=6160.0.55.001&issue=Week%20ending%2013%20June%202020&num=&view=">Australian bureau of statistics</a></span>
</figcaption>
</figure>
<hr>
<p>Of course, paid employment is not the only work that gets done. Historically women have carried the bulk of caring work.</p>
<p>Statistics from the government’s gender agency suggest during COVID-19, <a href="https://www.wgea.gov.au/topics/gendered-impact-of-covid-19#_ftn2">more women than men are reporting heavier caring responsibilities</a>, both for children and adults, as well as housework.</p>
<p>This context is important to keep in mind when noting the government’s COVID-19 <a href="https://www.theguardian.com/australia-news/2020/jul/13/free-childcare-ends-as-tax-refunds-start-rolling-out-to-millions-of-australians">childcare relief package ended on Monday</a>. Under the package, the government’s various childcare subsidy payments were suspended and it provided childcare centres with 50% of the hourly rate cap based on enrolment numbers between February 19 and March 2. </p>
<p>Parents were not required to pay fees. Now, the <a href="https://www.dese.gov.au/covid-19/childcare/childcare-faq#section-arrangements-following-the-end-of-the-early-childhood-education-and-care-relief-package">pre-existing complex system of subsidies</a> has been reinstated and parents will once again be charged fees. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/morrison-has-rescued-childcare-from-covid-19-collapse-but-the-details-are-still-murky-134798">Morrison has rescued childcare from COVID-19 collapse – but the details are still murky</a>
</strong>
</em>
</p>
<hr>
<p>Added to this, the JobKeeper payment will end from July 20 for employees of childcare providers, which will impact childcare workers as well as cooks, managers, admin staff and cleaners in these centres. </p>
<p>There will be A$708 million in funding for services to replace JobKeeper from July 13 until September 27. This <a href="https://theconversation.com/free-childcare-ends-july-12-with-sector-losing-jobkeeper-but-receiving-temporary-payment-140253">money will be used to pay childcare services</a> 25% of the fee revenue they received before COVID-19 saw parents pulling children out of attendance.</p>
<p>The end of this package is a double hit to women. It hits an industry mostly staffed by women, and removes free child-care when women are struggling with increased caring responsibilities and job losses.</p>
<p>This is deeply concerning from the perspective of gender equity. But if that is not reason enough, the economics of the decision should give pause for thought.</p>
<h2>The system pushes women with children away from work</h2>
<p>It is two years since accounting firm KPMG developed the “<a href="https://home.kpmg/au/en/home/insights/2018/10/working-mothers-returning-to-work.html#:%7E:text=KPMG's%20study%20finds%20Workforce%20Disincentive,work%20beyond%20three%20per%20wee">workforce disincentive rate</a>” — a measure of the economic deterrence facing women wanting to return to work after having children, under our existing system of tax and benefits.</p>
<p>This rates the proportion of any extra earnings lost to a family after taking account of additional income tax paid, loss of family payments, loss of childcare payments and increased out-of-pocket childcare costs when women return to work after having children.</p>
<p>A 100% workforce disincentive rate means a family is no better off with the mother working more hours. A rate of more than 100% indicates the family is financially worse off when the mother works additional hours.</p>
<p>The KPMG study found workforce disincentive rates of <a href="https://home.kpmg/au/en/home/insights/2018/10/working-mothers-returning-to-work.html#:%7E:text=KPMG's%20study%20finds%20Workforce%20Disincentive,work%20beyond%20three%20per%20week">between 75-120% are common</a> for mothers seeking to increase their work beyond three days a week. </p>
<p>This means that, in many cases, women working additional days or taking additional shifts under the old system are financially worse off. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/347016/original/file-20200713-26-6o9s0s.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Under the current system, working part time makes more financial sense for many women.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/family-cooking-their-kitchen-mother-making-69280558">Shutterstock</a></span>
</figcaption>
</figure>
<p>The study found professional, university-educated women are disproportionately affected. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/quality-childcare-has-become-a-necessity-for-australian-families-and-for-society-its-time-the-government-paid-up-131748">Quality childcare has become a necessity for Australian families, and for society. It's time the government paid up</a>
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</em>
</p>
<hr>
<p>Often, their fourth or fifth working day will cause the family’s income to exceed a threshold, significantly reducing the family’s childcare subsidy entitlement.</p>
<p>This means that while many women return to part-time work after having children, far fewer return to full-time work. And this has flow-on effects throughout the economy and impedes the career progression of women. </p>
<p>This is the economics of the system to which Australian families have just been returned. This is the economics that needs to be urgently reconsidered, given our shared imperitive to find ways to stimulate economic growth.</p>
<h2>Economic recovery depends on women</h2>
<p>Australia’s economic recovery depends on finding ways to support and unlock economic growth and jobs. One way to do this is to unlock the productivity gains that come from increasing women’s workforce participation.</p>
<p>KPMG estimates even halving the gap between male and female workforce participation would increase our annual GDP by <a href="https://home.kpmg/au/en/home/insights/2018/04/ending-workforce-discrimination-against-women.html#:%7E:text=Economic%20modelling%20in%20KPMG%E2%80%99s%20new%20report%20Ending%20workforce,in%20our%20cumulative%20measured%20living%20standards%20by%202038.">A$60 billion over the next two decades</a>. </p>
<p>One of the barriers to women going to work is the cost of childcare. We see the results in the labour force statistics. Women make up <a href="https://www.wgea.gov.au/data/fact-sheets/gender-workplace-statistics-at-a-glance">37.7% of all full-time employees and 68.2% of all part-time employees</a>. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/covid-19-has-laid-bare-how-much-we-value-womens-work-and-how-little-we-pay-for-it-136042">COVID-19 has laid bare how much we value women's work, and how little we pay for it</a>
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<hr>
<p>Australian families have now had a taste of what it is like to the have access to fee-free childcare. Statistics are not available yet to enable us to understand exactly who took advantage of this system, but one thing is for certain. The economics of fee-free childcare are fundamentally different to the economics of the old system of childcare, which involved a complex interaction between subsidies and tax transfers. </p>
<p>It is possible fee-free childcare saw some women either being able to afford to return to work or increase their working hours.</p>
<p>For too long, Australian working women have literally carried the cost of childcare, and suffered the impact on their own careers.</p>
<p>It is time to recognise that delivering a new system of childcare, that does not disincentivise working women, would not only support our combined efforts to achieve gender equality, it would also constitute a major economic reform with benefits for everyone.</p><img src="https://counter.theconversation.com/content/142275/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Fiona David is Research Chair of The Minderoo Foundation. Our advocacy efforts through the Thrive by Five initiative include calling for a comprehensive reform of Australia's system of early learning, in line with the science about neurobiological development of children in the early years, 0-5.</span></em></p>We need a new childcare system that encourages women to work, not punishes them for itFiona David, Visiting Fellow, The University of Western AustraliaLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1390272020-05-21T05:17:00Z2020-05-21T05:17:00ZChildcare is critical for COVID-19 recovery. We can’t just snap back to ‘normal’ funding arrangements<figure><img src="https://images.theconversation.com/files/336423/original/file-20200520-152302-4ix6ux.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>This week, the federal government released <a href="https://www.dese.gov.au/system/files/doc/other/ecec_relief_package_four_week_review_summary_report_0.pdf">a review of a relief package</a> it put in place in April to ensure the early childhood education and care sector remained financially viable and children of essential workers, as well as vulnerable children, could continue to attend. </p>
<p>The review said in the week the relief package was announced</p>
<blockquote>
<p>30% of providers faced closure due to a massive, shock withdrawal of families and another 25% of providers were not sure they could ever recover, even once the virus crisis has passed.</p>
</blockquote>
<p>Under the emergency arrangements, <a href="https://www.pm.gov.au/media/early-childhood-education-and-care-relief-package">the government</a> is paying 50% of a childcare provider’s fee revenue up to the existing hourly rate cap, based on the enrolment numbers before parents started withdrawing their children because of the COVID-19 pandemic. </p>
<p>Childcare centres are prohibited from charging families an out-of-pocket fee, with the rest of their costs expected to be recouped through JobKeeper. Or they can limit costs by restricting the number of children in care, while prioritising children of essential workers.</p>
<p>On the release of the review of the scheme – due to end on June 28 – education minister Dan Tehan said the plan had “<a href="https://www.theguardian.com/australia-news/2020/may/19/its-done-its-job-dan-tehan-flags-end-of-free-childcare-under-weight-of-increasing-demand">done its job</a>” with <a href="https://www.dese.gov.au/system/files/doc/other/ecec_relief_package_four_week_review_summary_report_0.pdf">99% of services remaining open</a>, and most providers saying the emergency response has helped with financial viability. </p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/morrison-has-rescued-childcare-from-covid-19-collapse-but-the-details-are-still-murky-134798">Morrison has rescued childcare from COVID-19 collapse – but the details are still murky</a>
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<p>The package is far from perfect, and has helped most early childhood services but not all. The review reports a survey of around 54% of providers found the new payment had “at least to some extent” helped 86% of them stay open and retain staff and 76% to “remain financially viable”. </p>
<p>In early May, one provider of aged, disability and early childhood services, <a href="https://www.smh.com.au/politics/federal/childcare-scheme-is-crippling-centres-and-frustrating-parents-20200503-p54pdh.html">Uniting NSW and ACT, reported</a> it was losing A$1 million a month under the scheme. </p>
<p>Other centres reporting heavy losses include those with high numbers of children attending already, and those where a <a href="https://www.theguardian.com/australia-news/2020/may/18/a-quarter-of-all-childcare-centres-say-free-scheme-wont-help-them-remain-viable?utm_term=RWRpdG9yaWFsX01vcm5pbmdNYWlsQVVTLTIwMDUxOA%3D%3D&utm_source=esp&utm_medium=Email&utm_campaign=MorningMailAUS&CMP=morningmailau_email">high number of staff aren’t eligible</a> for JobKeeper, such as if they are casuals or on temporary visas.</p>
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<a href="https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=398&fit=crop&dpr=1 600w, https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=398&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=398&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=500&fit=crop&dpr=1 754w, https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=500&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/336621/original/file-20200521-102682-10xfkwy.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=500&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>Some who are unhappy with the current arrangements want to <a href="https://www.afr.com/politics/federal/downside-of-free-childcare-proves-costly-for-sector-20200422-p54m6x">revert to the previous system now</a>. Others say a <a href="https://womensagenda.com.au/latest/why-im-fronting-a-campaign-asking-the-prime-minister-to-extend-free-childcare-past-june-28/">preemptive snap-back would be a big mistake</a>, risking a second existential threat to the sector. </p>
<p>Dan Tehan has said <a href="https://www.theguardian.com/australia-news/2020/may/19/its-done-its-job-dan-tehan-flags-end-of-free-childcare-under-weight-of-increasing-demand">the government is working on a transition back to the old system</a> which “was working effectively”.</p>
<p>As we navigate uncharted territories over the coming months, the needs and vulnerabilities of children, families and the early childhood education and care workforce must also be at the forefront of our thinking.</p>
<h2>Why we can’t just ‘snap back’</h2>
<p><a href="https://ministers.dese.gov.au/tehan/minister-education-dan-tehan-interview-nadia-mitsopoulos-and-russell-woolf-abc-radio-perth-0">One of the main arguments for snapping back</a> to the old system is based on increasing demand for services over the past month. But what if this demand is driven by childcare being free, and withers away once fees are reintroduced, when families are forced to cut costs?</p>
<p>COVID-19 restrictions have resulted in <a href="https://theconversation.com/were-it-not-for-jobkeeper-unemployment-would-be-11-7-up-from-5-2-in-one-month-heres-how-the-numbers-pan-out-138268">skyrocketing unemployment and underemployment</a>. For many families, the transition back to work may be irregular and unpredictable. A sharp ending of the emergency measures may leave many families unable to access care when they need to get back to work.</p>
<p>On top of this, children’s routines have been disrupted, increasing levels of isolation and anxiety. Many <a href="https://www.dese.gov.au/system/files/doc/other/learning_at_home_during_covid_30042020.pdf">children not previously considered vulnerable will now fall into this category</a>, or become potentially vulnerable. </p>
<p>High quality early childhood education can help <a href="https://www.ucl.ac.uk/ioe/research-projects/2019/mar/effective-pre-school-primary-and-secondary-education-project-eppse">reduce the risk of vulnerability</a>. </p>
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Read more:
<a href="https://theconversation.com/1-in-5-kids-start-school-with-health-or-emotional-difficulties-that-challenge-their-learning-131134">1 in 5 kids start school with health or emotional difficulties that challenge their learning</a>
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<p>Meanwhile, early childhood providers are <a href="https://thesector.com.au/2020/04/26/paul-mondo-aca-president-shares-his-covid-experience-and-highlights-full-range-of-support-available/">navigating rapid changes to attendance, staffing, funding and revenue</a>. Under current arrangements, they are managing a steady growth in demand and a known stream of income. Reverting to the previous system will introduce a high degree of uncertainty. </p>
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<p>It will also take time and careful planning to define a way forward for the complex diversity of early childhood services. The report on the rescue package highlights how different types of services have <a href="https://www.dese.gov.au/system/files/doc/other/ecec_relief_package_four_week_review_summary_report_0.pdf">experienced COVID-19 in different ways</a>: while 80% of centre-based child care services reported steep declines in attendance, only around half of home-based family day care services did so. </p>
<p>Early childhood educators are also in a tenuous position. They are <a href="https://theconversation.com/low-paid-womens-work-why-early-childhood-educators-are-walking-out-91402">among the lowest-paid Australians</a>, with high levels of casual employment. <a href="https://theconversation.com/one-in-five-early-childhood-educators-plan-to-leave-the-profession-61279">Staff turnover is high</a>, which undermines delivery of quality education, given the critical <a href="https://education.unimelb.edu.au/__data/assets/pdf_file/0006/2929452/E4Kids-Report-3.0_WEB.pdf">importance of secure relationships</a> to children’s early learning and development. </p>
<p>Funding certainty in the coming months will support job security, which benefits children as well as workers. </p>
<h2>A slow transition is the best</h2>
<p>Governments’ short-term focus must be on balancing the needs of children and families with economic recovery. This may begin with a gradual return to something like the previous system, adjusted to meet our changed needs. </p>
<p>The current arrangements could be continued until September, followed by <a href="https://www.smh.com.au/national/replace-free-childcare-scheme-with-tax-deductions-to-kickstart-economy-20200518-p54tyg.html">a gradual reduction</a>, rather than a rapid rollback. After that we need some simple changes at a minimum:</p>
<ol>
<li><p>suspend the activity test, to remove the link between parents’ work or study situation and children’s access, so all families and children can access early childhood services</p></li>
<li><p>allow increased absences, so families have the flexibility to keep their children home when they are unwell</p></li>
<li><p>improve affordability, with increases to childcare subsidy rates at all income levels to a cap</p></li>
<li><p>prioritise the needs of children most at risk, to ensure access for the most vulnerable children. </p></li>
</ol>
<p>We must also plan for longer-term reform to build a more stable and sustainable early childhood sector for all Australian children, which is less likely to need rescuing in the event of future shocks. With the rescue package generating calls <a href="https://www.theguardian.com/commentisfree/2020/may/20/snapping-back-to-the-childcare-subsidy-method-is-nuts-it-should-not-be-a-system-that-profits">to permanently remove fees for early childhood services</a>, governments need to remain open to more ambitious reforms in future.</p>
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Read more:
<a href="https://theconversation.com/quality-childcare-has-become-a-necessity-for-australian-families-and-for-society-its-time-the-government-paid-up-131748">Quality childcare has become a necessity for Australian families, and for society. It's time the government paid up</a>
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<img src="https://counter.theconversation.com/content/139027/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jen Jackson has previously received funding from the Australian Research Council for research on the Australian early childhood workforce.</span></em></p><p class="fine-print"><em><span>Kate Noble and Sarah Pilcher do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The government’s emergency relief package for childcare centres has kept many from collapsing financially due to COVID-19. The transition to other arrangements must be slow and carefully managed.Kate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversityJen Jackson, Education Policy Lead, Mitchell Institute, Victoria UniversitySarah Pilcher, Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1337682020-03-17T03:52:07Z2020-03-17T03:52:07ZCOVID-19: what closing schools and childcare centres would mean for parents and casual staff<p>Several schools in Australia <a href="https://www.theage.com.au/national/toorak-primary-school-closes-following-coronavirus-case-20200317-p54atp.html">have closed</a> after some students and teachers tested positive for COVID-19. Meanwhile, some independent schools have <a href="https://www.smh.com.au/national/nsw/private-schools-begin-sending-students-home-for-remote-learning-20200316-p54agn.html">sent all students home pre-emptively</a>, without any infections being detected. Classes will now be done online.</p>
<p>While the federal government has introduced a ban of public gatherings with more than 500 people, it is not, at this stage, <a href="https://www.theguardian.com/world/2020/mar/16/why-australia-is-not-shutting-schools-to-help-control-the-spread-of-coronavirus">considering mass school closures</a>. Victoria’s Premier Dan Andrews has been more forthright, saying the <a href="https://www.theguardian.com/world/2020/mar/11/coronavirus-mass-school-closures-and-industry-shutdown-on-the-cards-says-victorias-premier">time will come</a> for statewide closures of schools. </p>
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<p>Even with schools staying open, some <a href="https://www.smh.com.au/national/nsw/i-m-happy-to-be-a-small-drop-families-withdrawing-children-from-school-to-fight-coronavirus-20200314-p54a2p.html">families are keeping children home</a> to prevent them getting infected, or passing the virus on to more vulnerable family members. </p>
<p>There have been no reports of childcare centres closing across Australia, but some parents may also be keeping their pre-school children at home. Childcare centres <a href="https://ca.news.yahoo.com/alberta-schools-childcare-centres-closing-203000995.html">have been closed</a> in some Canadian provinces, and it’s possible we’ll see something similar happening in Australia as the pandemic progresses.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/australian-schools-are-closing-because-of-coronavirus-but-should-they-be-133432">Australian schools are closing because of coronavirus, but should they be?</a>
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<p>Even without closures, the fewer numbers of students across Australia will impact on casual staff in both the childcare and school sectors. But if both were to close their doors, this may mean a massive loss to Australia’s workforce and economy.</p>
<h2>How many families would be affected?</h2>
<p>Millions of parents would be affected if schools and childcare centres were to close. Across Australia there are close to <a href="https://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/3101.0Jun%202019?OpenDocument">six million children</a> living in around four million families. </p>
<p>Around two thirds of these children are enrolled in Australian schools. In 2017, 2.2 million were <a href="https://www.acara.edu.au/docs/default-source/default-document-library/national-report-on-schooling-in-australia-20170de312404c94637ead88ff00003e0139.pdf?sfvrsn=0">primary school students</a> and 1.6 million were in secondary school. </p>
<p>Capital Economics senior economist Marcel Thieliant <a href="https://www.theage.com.au/politics/federal/second-stimulus-morrison-government-considers-billions-in-spending-20200316-p54aoi.html">told The Age</a> up to 1.85 million parents, or 14% of the workforce, would be required to stay home to care for their children if schools were closed. </p>
<p>He said a four-week school closure could knock off as much as an estimated 2% from quarterly GDP. And it is unclear how long schools would need to stay closed for to contain the outbreak.</p>
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<p>Nearly 1.6 million children are aged 0-4. More than half of them <a href="https://www.abs.gov.au/ausstats/abs@.nsf/cat/4402.0">attend early childhood education and care</a> or preschool.<br>
Economic analysis estimates subsidised early childhood education provides <a href="https://www.thefrontproject.org.au/initiatives/economic-analysis">more than 32 million additional hours</a> to the labour force. This means an additional A$1.4 billion in earnings, which then filters back to the government through taxes.</p>
<h2>How will closures affect staff?</h2>
<p>Part and full time teachers are likely to remain employed during any school closure, supporting children remotely. But schools are less likely to need casual teachers, which make up <a href="https://www.aitsl.edu.au/docs/default-source/research-evidence/spotlight/spotlight---professional-learning-for-relief-teachers.pdf">at least 12% of the workforce according to survey data</a>. </p>
<p>Casual staff in schools that have already closed may be feeling the pinch, and schools may also have less need for casual teachers if many students are staying home.</p>
<p>An <a href="https://www.aitsl.edu.au/docs/default-source/research-evidence/spotlight/spotlight---attrition.pdf?sfvrsn=40d1ed3c_0">estimated 25-50%</a> of teachers are leaving the profession at five years. If casual teachers are not paid to be in class, they may be prompted to leave the profession sooner.</p>
<p>But the situation is even worse for early childhood education.</p>
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<em>
<strong>
Read more:
<a href="https://theconversation.com/coronavirus-kids-and-school-closings-a-public-health-expert-answers-4-questions-133425">Coronavirus, kids and school closings: A public health expert answers 4 questions</a>
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<p>Government provides funding for schools based on their census enrolments. In private schools parents pay fees based on annual enrolments. But early childhood education funding is tied to both enrolment and attendance. It is <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2020/02/Australian-Investment-in-Education-ECEC-report.pdf">estimated parents fund</a> around 40% of the cost of early learning, and the government around 60% through a subsidy tied to household income. </p>
<p>Families in isolation, can use their child care subsidy to pay for a certain amount of absences, but only if centres remain open and operating. If a centre closes it cannot levy parents for fees nor collect subsidies from the government. </p>
<p>Early childhood education services can spend up to <a href="https://childcarealliance.org.au/media-publications/aca-media-releases/112-occupancy-and-performance-report-early-childhood-education-and-care-sector-10-12-2018/file">80% of their revenue</a> on staff and rent. This means services may need to stand down their workforce of <a href="https://docs.education.gov.au/system/files/doc/other/2016_ecec_nwc_national_report_sep_2017_0.pdf">200,000 staff</a>, and potentially dismiss casual staff, if they are forced to close. </p>
<p>We don’t have a clear indication of how many educators are casual, although certain types of care, such as holiday care, lend themselves to a casual workforce.</p>
<p>In 2019, we estimated the childhood workforce would be short of <a href="https://www.futuretracks.org.au/upskilling/upskilling-research">29,000 teachers by 2023</a>. With <a href="https://theconversation.com/one-in-five-early-childhood-educators-plan-to-leave-the-profession-61279">one in five educators</a> reporting they wish to leave the profession in the next 12 months, the effects of workers stepping away from the early childhood workforce due to centre closures could be dramatic. </p>
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<em>
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Read more:
<a href="https://theconversation.com/one-third-of-all-preschool-centres-could-be-without-a-trained-teacher-in-four-years-if-we-do-nothing-120099">One-third of all preschool centres could be without a trained teacher in four years, if we do nothing</a>
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<p>In recent days, the federal government <a href="https://ministers.education.gov.au/tehan/minimising-impact-covid-19-child-care">announced an assistance package</a> of A$14 million to help minimise the impact of COVID-19 on childcare centres. </p>
<p>But the Community Child Care Fund (CCCF) <a href="https://docs.education.gov.au/node/53362">Special Circumstances Grant Opportunity</a> is too small, and only available to some services. It is particularly designed for disadvantaged or vulnerable communities and can be used to pay expenses such as wages where services have fewer children attending or are forced to close due to COVID-19.</p>
<p>But staff would still be affected in more advantaged communities.</p>
<p>My analysis finds that if a service was to close for just one day, based on an average of 90 places and with an average daily fee of A$113.30 per child, it would lose more than <a href="https://education.govcms.gov.au/child-care-australia-report-september-quarter-2019">$10,000 dollars</a> per day. Multiply this by the nearly <a href="https://www.acecqa.gov.au/sites/default/files/2019-11/NQFSnapshot_Q32019.pdf">8,000 centres</a> and tens of millions of dollars would be foregone every day centres are closed – more if you consider other forms of care, such as out-of-school-hours care, would also close. </p>
<p>Many services are small or not for profit, and will not have the cash reserves to withstand extended unpaid closures. An extended closure could see services close for good and educators leave the workforce.</p>
<h2>So, what more can the government do?</h2>
<p>The early childhood sector already faces uncertainty around the <a href="https://www.themandarin.com.au/122765-its-time-to-commit-to-universal-access-to-preschools-and-funding-certainty-children-families-business-and-government-all-benefit/">time limited nature</a> of pre-school funding, which expires at the end of this year. It is vital the government retain funding in the education system to support educators in the event of a shutdown.</p>
<p>Educators can be actively engaged if services close. Remote education can be trialled, even for little learners, given the importance of early brain development. Governments should support schools to develop lessons and provide resources to help deliver education in new ways. </p>
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Read more:
<a href="https://theconversation.com/8-tips-on-what-to-tell-your-kids-about-coronavirus-133346">8 tips on what to tell your kids about coronavirus</a>
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<p>With these measures, we can minimise the economic effects of closures, keep our skilled workforce, and ensure parents can return to work and children return to learning settings as soon as possible.</p><img src="https://counter.theconversation.com/content/133768/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Megan O'Connell is Research and Policy Manager for Community Early Learning Australia (CELA), which is the peak body for Australia’s early and middle childhood education sector.</span></em></p>If schools and childcare centres shut without the necessary support, Australia may permanently lose valuable teachers and early childhood educators.Megan O'Connell, Honorary Senior Fellow, The University of MelbourneLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1317482020-02-16T08:15:34Z2020-02-16T08:15:34ZQuality childcare has become a necessity for Australian families, and for society. It’s time the government paid up<figure><img src="https://images.theconversation.com/files/315161/original/file-20200213-41652-1ktvtmi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/young-caucasian-boy-early-learning-counting-607314020">Shutterstock</a></span></figcaption></figure><p>An Australian family on the average wage typically spends <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">close to A$6,000 out of pocket per year on child care</a>, a new analysis from the Mitchell Institute shows. This is more than the average cost of sending a child to a private primary school. </p>
<p>Unlike the school sector, families don’t have the option to choose a low cost publicly delivered childcare service.</p>
<p>Childcare costs in Australia are among the <a href="https://data.oecd.org/benwage/net-childcare-costs.htm">highest in the OECD</a>, eating up <a href="https://womensagenda.com.au/latest/childcare-costs-are-an-increasing-stress-for-parents-nows-the-time-for-good-policy-making/">around 27%</a> of families’ incomes. Many families are being forced to <a href="https://theconversation.com/not-all-australian-parents-can-access-quality-childcare-and-preschool-they-cant-just-shop-around-130369">choose affordability over quality</a>.</p>
<p>But research shows quality preschool can deliver <a href="https://www.thefrontproject.org.au/images/downloads/Cost-benefit%20analysis_brochure.pdf">$2 of returns to the economy for every $1 invested</a>. Children who receive quality early childhood education and care are also up to <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/10/Two-Years-are-Better-than-One.pdf">eight months ahead</a> in learning, with the benefit still evident in adolescence.</p>
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Read more:
<a href="https://theconversation.com/report-finds-every-1-australia-spends-on-preschool-will-return-2-but-this-wont-just-magically-happen-120217">Report finds every $1 Australia spends on preschool will return $2, but this won't just magically happen</a>
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<p>If quality early learning delivers public benefits for the country as well as private benefits for families, then there’s a strong case for Australian governments to carry a greater share of the cost.</p>
<h2>How much are we paying?</h2>
<p>Our analysis shows government spending on early childhood education and care has <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">escalated over the past ten years by around 140%</a>. This means <a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">both sides of politics</a> are recognising early learning is a worthwhile investment. But Australia’s public investment is still <a href="http://www.earlychildhoodaustralia.org.au/our-work/submissions-statements/state-early-learning-australia-report-2019/">below the OECD average</a> of <a href="https://read.oecd-ilibrary.org/education/education-at-a-glance-2019_f8d7880d-en#page180">0.8% of GDP</a>.</p>
<p>Over the past ten years, families’ investment in early childhood services has grown even faster, by <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">about 150%</a>.</p>
<p>Governments contribute a far lower share for early learning than what they contribute to schools. A two-parent, one-child Australian family on an average income of A$85,000 will typically spend around <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">A$6,000 a year on childcare fees</a>, with the government contributing about the same amount.</p>
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Read more:
<a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">Both major parties are finally talking about the importance of preschool – here's why it matters</a>
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<p>If that child then goes to a public primary school, the government contributes <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">close to A$12,000</a>, with minimal costs imposed on the family. Even a private primary school would typically cost the family less than they spend on child care, thanks to <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">almost A$10,000</a> per child in government funding.</p>
<p>The early years of life are the <a href="https://www.rch.org.au/ccch/first-thousand-days/">most critical period for brain development</a>. Yet Australian governments are under-investing in early learning, preferring to spend millions remediating gaps once children reach the government-funded school system.</p>
<h2>Investing in parental workforce participation</h2>
<p><a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">About half</a> of the increase in Australia’s investment in early childhood services can be explained by the increase in children attending them. Since the early 1990s, the number of children in childcare <a href="https://aifs.gov.au/sites/default/files/publication-documents/1907_cce_early_monitoring_report_citation.pdf">has increased five-fold</a>. <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">Our analysis</a> shows since 2008, participation in childcare has increased by around 80%.</p>
<p>Changing family structures have fuelled this rise in demand. In the 1980s, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001">most two-parent families</a> had only one adult in the paid workforce. Now, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/mf/6224.0.55.001">more than one in five</a> Australian families with young children have both adults in full-time work. </p>
<p>It’s not feasible to <a href="https://www.childcarecanada.org/sites/default/files/Chap%203.pdf">say this is a private choice</a>, and that the costs of childcare should therefore be borne by the family. For many Australian families, costs of living can only be met by both parents working, and accessing childcare as cheaply as possible.</p>
<p>The impact of childcare costs is greatest for Australia’s most vulnerable children and families. Low-income families are likely to spend a <a href="https://natsem.canberra.edu.au/publications/?publication=ampnatsem-income-and-wealth-report-issue-35-childcare-affordability-in-australia">much bigger proportion</a> of their discretionary income on childcare than high-income families – meaning less is leftover for other family essentials.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/315408/original/file-20200214-11005-83z3jp.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">In Australia, most families have both parents in full time work.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/happy-family-spending-time-home-looking-587531531">Shutterstock</a></span>
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<p>Other families combine care for children with part-time work. Australia has the <a href="https://data.oecd.org/emp/part-time-employment-rate.htm">fourth-highest rate of part-time work</a> in the OECD, and <a href="https://www.rba.gov.au/publications/bulletin/2017/sep/3.html">numbers of part-time workers are growing</a>.</p>
<p>The Australian government recognises that helping families balance work and family life is a worthwhile investment. The childcare subsidy is designed to make it easier for families to work, <a href="https://aifs.gov.au/publications/child-care-package-evaluation-early-monitoring-report">especially working parents</a> on lower incomes.</p>
<p>One problem with subsidies to working families is that <a href="https://www.education.gov.au/child-care-subsidy-activity-test">children miss out if either parent is unemployed</a>. These children stand to gain most from quality early childhood services, which <a href="https://www.aihw.gov.au/getmedia/321201fc-ca0c-4c20-9582-7c3dc5c9d1b9/19438.pdf.aspx?inline=true">deliver greatest benefits</a> for children from lower-income homes.</p>
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Read more:
<a href="https://theconversation.com/preschool-benefits-all-children-but-not-all-children-get-it-heres-what-the-government-can-do-about-that-117660">Preschool benefits all children, but not all children get it. Here's what the government can do about that</a>
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<p>More money to families also enables childcare providers to charge more. Education minister Dan Tehan has acknowledged the benefits of the 2018 change to the <a href="http://thespoke.earlychildhoodaustralia.org.au/whats-story-child-care-costs/">childcare subsidy on costs for families</a> have been <a href="https://www.smh.com.au/politics/federal/childcare-package-all-but-gone-18-months-after-introduction-20200131-p53wlr.html">swallowed up by fee increases</a>. This suggests Australia needs to invest in early learning more wisely. </p>
<h2>Investing in children</h2>
<p>A smarter investment in early childhood education and care focuses on the benefits for children’s learning. This kind of investment ensures all children gain access to quality early childhood services, regardless of what their parents can pay. </p>
<p>In 2009, governments committed to <a href="https://www.education.gov.au/national-partnership-agreements">15 hours of preschool for children in the year before school</a>, recognising this would yield strong public benefits in the long-term. </p>
<p>This investment logic is similar to schools: goverments pay, children learn, and the economy and society benefits. Parents can pay extra if they choose, but every child is guaranteed a quality education. </p>
<p>Few people would question this logic for schools, but the Australian government is <a href="https://www.education.gov.au/universal-access-early-childhood-education">still holding back</a> from funding preschool long-term. This instability creates inefficiencies. <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2019/10/UANP-review-submission_Mitchell-Institute_.pdf">Many preschool staff are on short-term contracts</a> and families are unable to plan their investment in their child’s early learning.</p>
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Read more:
<a href="https://theconversation.com/not-all-australian-parents-can-access-quality-childcare-and-preschool-they-cant-just-shop-around-130369">Not all Australian parents can access quality childcare and preschool – they can't just 'shop around'</a>
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<p>Other countries do this better. Australian families might <a href="https://www.smh.com.au/education/looking-to-swedish-model-of-childcare-and-education-20150518-gh48hj.html">look longingly to Sweden</a>, which provides over 500 hours of free education and care for children aged three to five, and low fees for younger children, matched to families’ income. Sweden is in the <a href="https://www.dca.org.au/sites/default/files/share_the_care_final.pdf">top five countries for working mums</a>, and <a href="http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf">top ten for economic competitiveness</a>.</p>
<p>A shift from private to public investment is possible even in early childhood systems more similar to Australia. In Canada, a major review of early childhood funding concluded <a href="https://theconversation.com/why-free-preschool-makes-the-most-sense-for-families-94716">free preschool from age 2.5</a> was the fairest solution, above all other options.</p>
<p>The review also found tax deductions (a solution <a href="https://www.smh.com.au/money/tax/plan-for-tax-deductible-childcare-ought-to-be-on-the-table-20200120-p53t2k.html">proposed in Australia</a>) favoured middle-income families, but <a href="https://theconversation.com/why-an-ontario-tax-credit-for-child-care-is-a-bad-idea-115207">left low-income families behind</a>. This is because they wouldn’t earn enough for tax credits to cover the costs of quality education and care. </p>
<p>Whatever the solution, something has to change. As annual government investment in early childhood <a href="http://www.mitchellinstitute.org.au/reports/australian-investment-in-education-early-learning/">approaches $10 billion</a>, and families still struggle under the burden of costs, the <a href="https://www.theage.com.au/opinion/child-care-policies-australia-is-waiting-20040113-gdx3o5.html">longstanding “barbecue stopper”</a> of childcare costs needs to become an evidence-based debate about smarter investment.</p><img src="https://counter.theconversation.com/content/131748/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jen Jackson has previously received funding from the Australian Research Council for research on the Australian early childhood workforce.</span></em></p>Quality preschool can deliver $2 for every $1 from government. But families are paying more for it than if they sent their child to private primary school. Some forego quality for affordability.Jen Jackson, Education Policy Lead, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1274302019-11-21T19:33:05Z2019-11-21T19:33:05ZVital Signs. Untaxing childcare is a bold idea that seems unfair, but might benefit us all<figure><img src="https://images.theconversation.com/files/302850/original/file-20191121-547-vawbdt.jpg?ixlib=rb-1.1.0&rect=586%2C904%2C3407%2C1748&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Win-win? No-one would be worse off under the UNSW proposal. Over time it should pay for itself</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australia’s system of childcare support is <a href="https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy">pretty good</a>. </p>
<p>It ensures high-quality care is provided to a large number of children, it is targeted through income-based subsidies, and it is attentive to the needs of disadvantaged children and families.</p>
<p>But it has significant weaknesses. </p>
<p>It is extremely complex, with four different rates of subsidy <a href="https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/type-child-care-you-use-affects-it">based on the type of care involved</a>, <a href="https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-income-can-affect-it">six different income thresholds plus a sliding scale</a> for how household income affects the subsidy, an <a href="https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-income-can-affect-it#annualcap">annual cap of $10,373 per child</a> for households earning more than $188,163, and <a href="https://www.humanservices.gov.au/individuals/services/centrelink/child-care-subsidy/how-much-you-can-get/your-activity-level-affects-it#hoursactivity">an activity test</a> to determine eligibility.</p>
<p>Worse, many families find it hard to get good childcare. Children are added to waiting lists from birth.</p>
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Read more:
<a href="https://theconversation.com/new-childcare-policy-still-leaves-vulnerable-families-behind-99145">New childcare policy still leaves vulnerable families behind</a>
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<p>And, as the Productivity Commission and others <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-volume1.pdf">have pointed out</a>, the sliding income scale and caps can mean parents looking to expand their working hours from three days to four days a week can face effective marginal tax rates <a href="https://www.theage.com.au/politics/federal/pink-tax-versus-blue-tax-the-case-for-taxing-women-lightly-20180613-p4zl34.html">approaching 100%</a>.</p>
<p>This is not a good way to give parents choice about whether to work inside or outside of the home. By restricting (mainly female) choice it restricts the potential size of the workforce. </p>
<p>And that, in turn, contributes to the gender pay gap. On average, <a href="https://www.wgea.gov.au/data/fact-sheets/australias-gender-pay-gap-statistics">women earn only 86% of what men do</a>. </p>
<p>Time out of the workforce is <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1615761">one of the key reasons</a>.</p>
<h2>How to do it</h2>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=854&fit=crop&dpr=1 600w, https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=854&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=854&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1073&fit=crop&dpr=1 754w, https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1073&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/302828/original/file-20191121-502-1olabi4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1073&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="attribution"><a class="source" href="https://b536ef95-d95a-41ab-8ea2-86d91525afdc.filesusr.com/ugd/d1755c_97605ce5b7544f689ea68a261859bd23.pdf">UNSW New Economic Policy Initiative</a></span>
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<p>This week the <a href="https://www.neweconomicpolicy.com">New Economic Policy Initiative</a> at the University of NSW launched a report coauthored by Rosalind Dixon, Melissa Vogt and myself entitled <a href="https://cdn.theconversation.com/static_files/files/781/Untaxing_Childcare_%28Web%29.pdf?1574206061">(Un)Taxing Childcare</a> .</p>
<p>Our proposal would allow households who want to continue to use the current arrangements do so without modification. Households who wanted to forego the current arrangements could instead receive a tax deduction for childcare expenses of up to A$60,000 per year. </p>
<p>The money could be spent on centre-based childcare, home-based care, or a nanny.</p>
<p>In two-parent households that took advantage of it, each parent would be able to deduct 50% of the cost at their marginal rate up to the limit.</p>
<h2>High earners would gain a lot…</h2>
<p>Modelling of the plan by Ben Phillips of the Australian National University finds our policy would leave more than <a href="https://b536ef95-d95a-41ab-8ea2-86d91525afdc.filesusr.com/ugd/d1755c_97605ce5b7544f689ea68a261859bd23.pdf">205,000 households better off</a> – one in five households with children. The ability to pick systems means none would be worse off.</p>
<p>The average couple with children would be $618 per year better off. Highest-earning households would benefit the most, with an average benefit for the top fifth of $1,080 per year.</p>
<p>But the benefit for the second bottom fifth would also be high, at $626 per year, adding 1.9% to their disposable incomes.</p>
<p>Objections will include the skew of benefits toward higher earners, an initial hit to budget of $608 million per year, and the possibility that the deduction will allow private providers to push up prices.</p>
<h2>…but the economy would gain the most</h2>
<p>Against them needs to be set the boost in the size of the potential workforce big enough to make the budget cost pay for itself, and an increase in the options available to parents considering returning to work.</p>
<p>We estimate that if half of all eligible households took up the tax deduction option the economic benefit from additional work would amount to $3.9 billion per year, which is about the output of the entire Australian dairy industry.</p>
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Read more:
<a href="https://theconversation.com/election-factcheck-qanda-does-the-government-spend-more-on-negative-gearing-and-capital-gains-tax-discounts-than-on-child-care-or-higher-education-61009">Election FactCheck Q&A: does the government spend more on negative gearing and capital gains tax discounts than on child care or higher education?</a>
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<p>The hybrid nature of our proposal means that low earners who stayed on the existing scheme would be no worse off. </p>
<p>But the economy would be more vibrant, skills that have been built up would be retained and enhanced, and the gender pay gap could narrow.</p><img src="https://counter.theconversation.com/content/127430/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Richard Holden does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>High income families could get up to $1,080 per year, others $618, but it could still be worthwhile.Richard Holden, Professor of Economics, UNSW SydneyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1135292019-07-10T19:35:11Z2019-07-10T19:35:11ZMexican president López Obrador has a woman problem<p>After the leftist firebrand Andrés Manuel López Obrador <a href="https://theconversation.com/mexico-elects-a-leftist-president-who-welcomes-migrants-99204">won the Mexican presidency in a landslide</a> last year, he <a href="https://theconversation.com/andres-manuel-lopez-obrador-was-elected-to-transform-mexico-can-he-do-it-99176">vowed</a> to “govern for all, starting with the poor.”</p>
<p>In Mexico, “the poor” includes many women, who <a href="https://www.conapred.org.mx/documentos_cedoc/Discriminacionestructural%20accs.pdf">earn 34% less than men for doing the same job</a>. Women in Mexico also face incessant <a href="https://www.npr.org/sections/codeswitch/2015/02/10/384994475/stop-telling-women-to-smile-denouncing-jackals-and-catcalling-in-mexico">catcalling</a> and extremely high rates of violence. With <a href="https://www.eluniversal.com.mx/estados/cada-dos-horas-y-media-matan-una-mujer-en-mexico">1,199 women</a> murdered in Mexico between January and April this year – about 10 a day – Mexico is Latin America’s <a href="https://oig.cepal.org/en/indicators/femicide-or-feminicide">second-most dangerous country for women</a>, after Brazil, according to the United Nations.</p>
<p>As a presidential candidate, López Obrador <a href="https://drive.google.com/file/d/1nbUQIKMYO2NuALDOFC3BEwAGy-QOs9dx/view">spoke about the challenges</a> facing women in Mexico. His campaign even acknowledged that domestic abuse and poverty are <a href="https://tbinternet.ohchr.org/_layouts/15/treatybodyexternal/Download.aspx?symbolno=CEDAW%2fC%2fMEX%2fCO%2f9&Lang=en">particularly prevalent</a> among indigenous women, and pledged to help them, too.</p>
<p>López Obrador’s administration has not, however, made women’s rights a priority. Instead, it has been rolling back some the few federal policies designed to protect and empower Mexican women.</p>
<h2>Women in the workplace</h2>
<p>Under austerity measures meant to curb public spending, López Obrador in February <a href="https://lopezobrador.org.mx/2019/02/07/version-estenografica-de-la-conferencia-de-prensa-matutina-del-presidente-andres-manuel-lopez-obrador-40/">ended</a> an <a href="http://unpan1.un.org/intradoc/groups/public/documents/un-dpadm/unpan049524.pdf">internationally lauded</a> daycare program that allowed low-income families to sign up for <a href="https://cadenanoticias.com/nacional/2019/02/como-opera-el-programa-de-estancias-infantiles">government-subsidized</a> childcare close to their workplace or home. </p>
<p>Rather than pay subsidies to this network of private daycare facilities, the Mexican government will now give <a href="https://noticieros.televisa.com/ultimas-noticias/amlo-cuanto-dinero-recibiran-mamas-padres-sin-estancias-infantiles/">vouchers worth about US$80</a> every two months directly to families. </p>
<p>The new policy will give parents more choice in their childcare, the Mexican government says. Each family may now decide whether to send their children to daycare or pay “a sister, an aunt or a grandma,” López Obrador said in a <a href="https://lopezobrador.org.mx/2019/02/07/version-estenografica-de-la-conferencia-de-prensa-matutina-del-presidente-andres-manuel-lopez-obrador-40/">Feb. 7 press conference</a>.</p>
<p>López Obrador, who remains <a href="https://www.as-coa.org/articles/approval-tracker-mexicos-president-amlo">popular</a> six months into his six-year term, additionally explained his decision to end government-subsidized daycare by saying the program was <a href="https://www.eleconomista.com.mx/politica/AMLO-anuncia-como-se-repartiran-los-fondos-para-el-bienestar-20190207-0050.html">corrupt</a>. </p>
<p>Several private daycare centers that benefit from government subsidies have been involved in high-profile <a href="https://www.excelsior.com.mx/nacional/2017/11/16/1201699">child abuse scandals</a> or shown to have unsafe facilities. In 2009 ABC Daycare in Hermosillo, Sonora state, caught fire, <a href="https://www.eleconomista.com.mx/politica/Tragedia-en-guarderia-ABC-cumple-ocho-anos---20170604-0144.html">killing 49 children</a>. </p>
<p>Lopez Obrador blamed these problems on <a href="https://lopezobrador.org.mx/2019/02/15/version-estenografica-de-la-conferencia-de-prensa-matutina-del-presidente-andres-manuel-lopez-obrador-46/">corruption among government and private-sector middlemen</a>, who pocketed cash meant to serve children. He says that by removing the intermediaries to give money directly to families, the opportunity for corruption is eliminated.</p>
<p>Public corruption is <a href="https://theconversation.com/governors-gone-wild-mexico-faces-a-lost-generation-of-corrupt-leaders-76858">rampant in Mexico</a>. But there’s no evidence that the childcare program suffered particularly from abuse of public funds. </p>
<p>In fact, Mexico’s subsidized childcare network, which has served <a href="https://www.coneval.org.mx/Evaluacion/Documents/EVALUACIONES/FMyE_2017_2018/FMyE_20_S174.pdf">2 million children</a> since it was <a href="http://calderon.presidencia.gob.mx/2007/05/el-presidente-calderon-en-el-anuncio-del-sistema-nacional-de-guarderias-y-estancias-infantiles/">established in 2007</a>, has been quite successful in enabling more women to work outside the home. </p>
<p>According to a <a href="https://www.coneval.org.mx/Evaluacion/Documents/EVALUACIONES/FMyE_2017_2018/FMyE_20_S174.pdf">2017 government evaluation</a>, the daycare network had relieved 1,825,394 parents of childcare duties for 34 hours a week over the past decade. A significant percentage of the communities served by the daycare network were either <a href="http://unpan1.un.org/intradoc/groups/public/documents/un-dpadm/unpan049524.pdf">very poor or home to a predominately indigenous population</a>, according to the U.N., and women were the primary beneficiaries.</p>
<h2>Unequal domestic labors</h2>
<p>Women’s groups and <a href="http://www.cndh.org.mx/sites/all/doc/Recomendaciones/2019/Rec_2019_029.pdf">human rights organizations</a> in Mexico responded to the termination of the daycare program – and to the president’s suggestion that female relatives could care for Mexico’s children – with outrage.</p>
<p>In a <a href="https://www.animalpolitico.com/2019/02/recorte-estancias-infantiles-refuerza-estereotipos-desigualdad-genero-organizaciones/">joint statement released Feb. 11</a>, 17 civil society organizations said the new policy would “strengthen gender streotypes” and “promote discrimination and gender inequality.” The groups reminded the president that women do 70% of all domestic work in Mexico and that grandmothers already care for 50% of all young children not in their parents’ care.</p>
<p>Mothers who used government subsidized daycare were 18% more likely to have gotten a job between 2007 and 2017 compared to those who did not receive government-subsidized childcare, according to a government <a href="https://www.coneval.org.mx/Evaluacion/Documents/EVALUACIONES/FMyE_2017_2018/FMyE_20_S174.pdf">program evaluation</a>.</p>
<p>Even so, Mexico still has the second-lowest female participation in the workforce among developed countries, behind Turkey. Only <a href="https://www.mckinsey.com/%7E/media/mckinsey/featured%20insights/americas/one%20aspiration%20two%20realities%20promoting%20gender%20equality%20in%20mexico/one-aspiration-two-realities-promoting-gender-equality-in-mexico.ashx">four out of 10 women are employed outside the home</a>.</p>
<p>The López Obrador administration has responded to this criticism with indignance.</p>
<p>After Mexico’s National Human Rights Commission <a href="https://www.animalpolitico.com/2019/06/recomendacion-cndh-estancias-infantiles/">ruled</a> that ending the daycare program violated the constitutional rights of Mexican women and children, a government official sought to <a href="https://www.gob.mx/cms/uploads/attachment/file/471407/2094980_SSDSH_Recomendacio_n_29.2019.pdf">discredit</a> the independent government agency as a partisan entity. </p>
<p>Deputy Secretary of Human Development Ariadna Montiel Reyes called the organization’s position an “unacceptable aberration” orchestrated by López Obrador’s political opponents and accused the commission of complicity with “atrocities” committed by previous administrations. </p>
<p>This is the <a href="https://www.elfinanciero.com.mx/opinion/pablo-hiriart/ahora-van-contra-la-cndh">first time</a> the Mexican federal government has challenged the legitimacy of the human rights commission since its creation as a government watchdog in 1992.</p>
<h2>Taking out the middleman</h2>
<p>The elimination of public daycare was infuriating to López Obrador supporters who expected the president to promote a more <a href="https://twitter.com/sembrarlapaz/status/1002320976061829122">progressive gender agenda</a>. </p>
<p>So when the president announced in March that his administration would additionally <a href="https://elpais.com/internacional/2019/03/03/mexico/1551648283_893550.html">slash funding</a> for women’s shelters and instead <a href="https://www.eluniversal.com.mx/nacion/politica/gobierno-dara-recursos-directamente-mujeres-victimas-de-violencia-amlo">give the money directly to victims of domestic violence</a>, the <a href="https://www.animalpolitico.com/2019/03/refugios-amlo-mujeres-confusion-incertidumbre/">backlash was immediate and fierce</a>.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=404&fit=crop&dpr=1 600w, https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=404&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=404&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=508&fit=crop&dpr=1 754w, https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=508&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/282289/original/file-20190702-126391-1h4k1gl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=508&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Mexican President Andrés Manuel López Obrador remains popular. On July 1, 2019, he celebrated the one-year anniversary of his landslide win with a rally in Mexico City attended by several thousand people.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Mexico-Obrador-Anniversary/ab4b89982bbc446c868087943c4dc423/32/0">AP Photo/Fernando Llano</a></span>
</figcaption>
</figure>
<p>Worldwide, women are most likely to be murdered by a male partner and <a href="https://www.nytimes.com/2018/11/27/world/female-homicide-gender-violence.html">may be unsafe in their own homes</a>, making shelters a vital sanctuary. </p>
<p>The number of Mexican women stabbed or strangled at home <a href="https://www.gob.mx/cms/uploads/attachment/file/293666/violenciaFeminicidaMx_07dic_web.pdf">rose 54%</a> between 2012 and 2016. In March 2019, the same month the cuts were announced, Mexican police received <a href="https://www.excelsior.com.mx/nacional/preocupa-este-repunte-de-la-violencia-familiar-en-el-pais/1312639">56,590 reports</a> of domestic violence – a 16% increase over February 2019.</p>
<p><a href="https://www.animalpolitico.com/punto-gire/cien-dias-de-austeridad-machista/">Advocates</a> for victims of domestic violence <a href="https://www.theguardian.com/world/2019/mar/05/mexico-funding-cuts-womens-shelters-domestic-violence">warned</a> that cutting funding to domestic violence shelters would expose women and children to even more danger. </p>
<p>Public uproar forced the Mexican government to <a href="https://www.jornada.com.mx/ultimas/2019/03/07/los-refugios-para-mujeres-maltratadas-seguiran-amlo-8054.html">retreat on its plan to stop funding women’s shelters</a> and give cash payments to women instead. </p>
<p>But, a few months later, in May, news reports revealed that women’s shelters would <a href="https://www.cimacnoticias.com.mx/noticia/aprueban-recursos-para-refugios-de-mujeres-en-situaci-n-de-violencia">see substantial budget cuts</a> under the government’s <a href="https://theconversation.com/lopez-obrador-clashes-with-courts-after-vowing-poverty-for-mexican-government-109357">austerity measures</a>. <a href="https://almomento.mx/solicitan-que-entreguen-los-recursos-asignados-a-los-refugios/">Twenty-nine percent</a> of Mexico’s 81 publicly funded domestic violence shelters have received no federal funding for the second half of the year.</p>
<h2>Women’s rights ‘not a priority’</h2>
<p>To quell criticism that it doesn’t care about women, the Mexican government in late May announced the launch of a European Union and United Nations program in Mexico to eliminate violence against women. </p>
<p>The €7 million investment, called <a href="https://ec.europa.eu/europeaid/news-and-events/violence-against-women-and-girls-eu-and-un-launch-spotlight-initiative-mexico_en">Spotlight Initiative</a>, will target <a href="http://spotlightinitiative.org/news/ni-una-mas-mothers-call-justice">three Mexican states with high rates of violence against women</a>: Mexico state, Chihuahua and Guerrero.</p>
<p>Its goals, according to the EU, are to design public spaces that are safer for women, facilitate women’s access to justice and protection services and to “fundamentally change the perception of women within their families and in society.”</p>
<p>López Obrador wasn’t always sure that Mexico needed the help. </p>
<p>A spokesperson for the European Union <a href="https://elpais.com/internacional/2019/05/29/mexico/1559160578_800202.html">told</a> the Spanish newspaper El País that López Obrador initially rejected this initiative because, for his government, gender “was not a priority.”</p>
<p>As Mexican women have made clear, they disagree.</p>
<p>[ <em>You’re smart and curious about the world. So are The Conversation’s authors and editors.</em> <a href="https://theconversation.com/us/newsletters?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=youresmart">You can read us daily by subscribing to our newsletter</a>. ]</p><img src="https://counter.theconversation.com/content/113529/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Mexico is the second most dangerous country for women in Latin America. Yet the new government is slashing funding for programs meant to protect and empower women.Luis Gómez Romero, Senior Lecturer in Human Rights, Constitutional Law and Legal Theory, University of WollongongMaría de la Macarena Iribarne González, Lecturer, School of Law, University of WollongongLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1176602019-06-03T20:10:35Z2019-06-03T20:10:35ZPreschool benefits all children, but not all children get it. Here’s what the government can do about that<figure><img src="https://images.theconversation.com/files/277557/original/file-20190603-69051-14k70tt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Fewer than one-quarter of young children from low-income families used preschool or childcare services in 2017.</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/IFCloi6PYOA">Photo by Markus Spiske on Unsplash</a></span></figcaption></figure><p>Leading up to the election, Labor campaigned on an <a href="https://theconversation.com/labors-childcare-plan-parents-children-and-educators-stand-to-benefit-but-questions-remain-116143">ambitious suite</a> of early childhood policies, including 15 hours of funded preschool for every Australian three-year-old and
A$4 billion to increase childcare subsidies.</p>
<p>The Coalition said little about early childhood reform. It did put in place a <a href="https://www.education.gov.au/child-care-subsidy-0">reformed set of childcare subsidies</a> that came into force in July 2018. These streamlined a previously complex funding system and benefited some (<a href="https://theconversation.com/new-childcare-policy-still-leaves-vulnerable-families-behind-99145">but not all</a>) low-income families. </p>
<p>Yet Australia is still far from having an early childhood sector that delivers what children and families need. Here’s where the next government needs to look to ensure an effective, affordable early childhood sector for Australia.</p>
<h2>1. Invest more in preschool, keep an eye on evidence</h2>
<p>The evidence for the <a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">benefits of quality preschool</a> is well established. So far, the Coalition has committed to another 12 months of funding for four-year-old preschool. But there is a strong case for long-term investment. </p>
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<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">Both major parties are finally talking about the importance of preschool – here's why it matters</a>
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<p>School readiness among Australian children <a href="https://www.aedc.gov.au/schools/findings-from-the-aedc">has improved</a> since the <a href="https://www.education.gov.au/national-partnership-agreements">first national partnership agreement</a> on four-year-old preschool funding in 2009. Ongoing funding would also improve efficiency in preschool provision by allowing providers to plan ahead. </p>
<p><a href="http://www.mitchellinstitute.org.au/reports/two-years-preschool/">Evidence also shows</a> the earlier children can access quality early childhood services, the better their longer-term learning outcomes are likely to be. </p>
<p>But the jury is still out about what kind of model will best provide these opportunities to Australian children.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=900&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=900&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=900&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1131&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1131&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277561/original/file-20190603-69087-etm5mu.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1131&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The earlier children can access early childhood education, the better the outcomes.</span>
<span class="attribution"><a class="source" href="https://unsplash.com/photos/OO89_95aUC0">Photo by Markus Spiske on Unsplash</a></span>
</figcaption>
</figure>
<p>Australia has a complex early childhood sector. An <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/child-care-education-and-training/early-childhood-education-and-care/rogs-2018-partb-chapter3.pdf">estimated 57.8%</a> of Australian three-year-olds are already enrolled in preschool – although the Australian Bureau of Statistics <a href="https://www.abs.gov.au/Ausstats/abs@.nsf/Latestproducts/4240.0Appendix22018?opendocument&tabname=Notes&prodno=4240.0&issue=2018&num=&view=">advises caution</a> in reporting preschool data. This is because “preschool” can mean many things, including stand-alone services, programs in childcare, or preschools located in schools. </p>
<p>Different models for three-year-old preschool are emerging across Australia. Victoria is providing subsidised preschool to <a href="https://www.education.vic.gov.au/about/programs/Pages/three-year-old-kinder.aspx#link47">three-year-olds in all settings</a> (including long daycare); NSW is funding <a href="https://www.nsw.gov.au/your-government/the-premier/media-releases-from-the-premier/nsw-the-first-state-to-subsidise-preschool-for-all-three-year-olds/">community preschools only</a>; while the <a href="https://www.cmtedd.act.gov.au/open_government/inform/act_government_media_releases/yvette-berry-mla-media-releases/2018/working-towards-early-childhood-education-for-every-three-year-old-child">ACT</a> is yet to release details. Other jurisdictions are targeting preschool to three-year-olds who require additional support. </p>
<p>The federal government would be smart to keep a close eye on the relative costs and benefits arising from different models as an evidence base to guide future investment.</p>
<h2>2. Ensure every educator can help children learn</h2>
<p>Preschools aren’t the only places Australian children can learn. Of all Australian children aged 0–5, <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/child-care-education-and-training/early-childhood-education-and-care/rogs-2018-partb-chapter3.pdf">around 43% receive</a> some kind of government-subsidised early childhood education and care. </p>
<p>But there is a widening gap in participation in early childhood services based on family income. Fewer <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/child-care-education-and-training/early-childhood-education-and-care/rogs-2018-partb-chapter3.pdf">than one-quarter (22.4%)</a> of young children from low-income families used preschool or childcare services in 2017, with a steady decline over the last five years. </p>
<p>While it may be too soon to see an impact from the Coalition’s childcare subsidy reforms, the government should aim for this figure to increase. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/what-outcomes-parents-should-expect-from-early-childhood-education-and-care-94731">What outcomes parents should expect from early childhood education and care</a>
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<p>There’s also plenty to be done to <a href="https://www.acecqa.gov.au/sites/default/files/2018-07/OccasionalPaper6_QualityRatingReassessments.pdf">keep improving quality</a> across the early childhood sector. Again, wide gaps exist across income groups. Early childhood service quality is <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2015/11/Educational-opportunity-in-Australia-2015-Who-succeeds-and-who-misses-out-19Nov15.pdf">lower in less wealthy communities</a>, especially in the crucial area of educational quality. </p>
<p>The Australian E4Kids study – which followed around 2,500 children for five years –found <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2017/10/Quality-is-key-in-early-childhood-education-in-Australia.pdf">only 7% of disadvantaged children received high-quality educational support</a> compared to 30% of the wealthiest children.</p>
<p>Expanding access to preschool is one way to improve the teaching quality younger children receive. In 2016, <a href="https://www.acecqa.gov.au/sites/default/files/acecqa/files/Reports/OccasionalPaper1-EducationalProgramandPractice_2.pdf">92% of preschools</a> met or exceeded national standards in their educational program, compared to 74% of long daycare services. </p>
<p>One reason is that most preschool educators have degrees and <a href="https://www.acecqa.gov.au/sites/default/files/2018-02/ECG-Manning-Teacher-qualifications.pdf">higher qualifications are associated with higher-quality teaching</a>. Effective three-year-old preschool requires skilled teachers who can design <a href="http://www.mitchellinstitute.org.au/fact-sheets/preschool-programs-for-3-year-olds/">specific programs</a> to meet the learning needs of younger children.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/277558/original/file-20190603-69091-1lkz0d0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Most of the staff working in early childhood don’t have a university degree – the government could expand their qualifications to improve quality.</span>
<span class="attribution"><span class="source">from shutterstock.com</span></span>
</figcaption>
</figure>
<p>If the federal government’s appetite for preschool investment is limited, it could also look into developing the skills of the many educators who do not hold university degrees. They <a href="https://www.pc.gov.au/research/ongoing/report-on-government-services/2018/child-care-education-and-training/early-childhood-education-and-care/rogs-2018-partb-chapter3.pdf">make up around 80%</a> of the Australian early childhood workforce. </p>
<p>Australia urgently needs <a href="https://www.education.act.gov.au/__data/assets/pdf_file/0004/1159357/Lifting-Our-Game-Final-Report.pdf">a national strategy</a> to support all educators to develop the skills they need to provide children with high-quality learning experiences.</p>
<p>The national training package for vocational early childhood qualifications is <a href="https://www.skillsiq.com.au/CurrentProjectsandCaseStudies/ChildrensEducationandCareTPD">being updated</a> alongside the <a href="https://www.education.gov.au/australian-qualifications-framework-review-0">major review</a> of the Australian Qualifications Framework, which provides the blueprint for Australia’s entire tertiary education sector. </p>
<p>This is the perfect time for governments to take a fresh look at the full suite of education and training options for professionals working with Australia’s youngest children.</p>
<h2>3. Ensure investment meets its goals</h2>
<p>Government investment in Australia’s early childhood sector has <a href="https://theconversation.com/early-learning-report-card-australia-is-improving-rapidly-but-theres-more-work-to-do-83706">risen dramatically</a> over the last decade. Quality reforms, such as higher ratios of adults to children, <a href="https://theconversation.com/factcheck-has-there-been-a-massive-increase-in-child-care-costs-under-the-coalition-government-55931">explain part of the increase</a>. </p>
<p>The Coalition’s childcare subsidy package also represented a <a href="https://www.education.act.gov.au/__data/assets/pdf_file/0004/1159357/Lifting-Our-Game-Final-Report.pdf">A$2.5 billion</a> increase in government investment.</p>
<p>Yet educators’ wages have <a href="https://eprints.qut.edu.au/101622/1/Brief_report_ECEC_Workforce_Development_Policy_Workshop_final.pdf">remained unacceptably low</a> over this period. Staff turnover has also increased – the proportion of educators employed for three years or less (the period of time many children attend childcare) has <a href="https://docs.education.gov.au/system/files/doc/other/2010_national_early_childhood_education_and_care_workforce_census_0.pdf">climbed from 30.3%</a> to <a href="https://docs.education.gov.au/system/files/doc/other/2016_ecec_nwc_national_report_sep_2017_0.pdf">38.2%</a> from 2010 to 2016. </p>
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Read more:
<a href="https://theconversation.com/low-paid-womens-work-why-early-childhood-educators-are-walking-out-91402">Low-paid 'women's work': why early childhood educators are walking out</a>
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<p>This is not only inefficient, but undermines the stable, caring relationships that <a href="https://issr.uq.edu.au/article/2018/04/relationship-quality-ecec-predicts-naplan-outcomes">help children learn</a>.</p>
<p>The government should look closely at how investment is flowing through the early childhood sector, especially appropriate models of support for for-profit providers. The profitability of early childhood services <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-appendixh.docx">varies widely</a>, but corporate providers <a href="https://www.smh.com.au/education/boom-time-for-corporate-childcare-in-australia-20161109-gslgx2.html">recorded healthy profits</a> during the last decade of government investment. However, this has recently <a href="https://www.afr.com/business/infrastructure/australias-childcare-oversupply-explained-20180828-h14m0r">eased due to oversupply</a>. </p>
<p>Given profitability and quality <a href="https://www.childcarecanada.org/sites/default/files/What%20research%20says%20about%20quality%20in%20fp%20np%20and%20p%20child%20care.pdf">don’t always mix</a>, funding models must ensure every dollar delivers benefits for children and families. </p>
<p>Targeted programs can also help ensure investment reaches those most in need. The evidence base for Australian-based targeted early childhood programs is growing, building on <a href="https://aifs.gov.au/cfca/bibliography/early-childhood-interventions-disadvantaged-communities">international research</a>. </p>
<p>One example is the <a href="https://fbe.unimelb.edu.au/__data/assets/pdf_file/0005/2781248/EYERP-Report-2-web.pdf">Early Years Education Program</a>, providing 145 vulnerable children with three years of tailored high-quality early childhood education and care. This program is already showing <a href="https://fbe.unimelb.edu.au/__data/assets/pdf_file/0005/2781248/EYERP-Report-2-web.pdf">an impact on children’s IQ</a>.</p>
<p>Early childhood advocates have long encouraged the two major parties to adopt policies that, evidence shows, will deliver the best opportunity for Australian children to thrive. The challenge is for the Coalition government to design a package of support for early learning that optimises investment and gets the best out of all the types of early childhood services children and families use.</p><img src="https://counter.theconversation.com/content/117660/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jen Jackson has previously received funding from the Australian Research Council for research on the Australian early childhood workforce.</span></em></p>Australia is far from having an early childhood sector that delivers what children and families need. The government can look to these three areas to ensure access for all Australian children.Jen Jackson, Education Policy Lead, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1170972019-05-14T20:16:16Z2019-05-14T20:16:16ZBeyond the dollars: what are the major parties really promising on education?<figure><img src="https://images.theconversation.com/files/274302/original/file-20190514-60554-kfqfg5.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">How do the major parties’ education commitments stack up?</span> <span class="attribution"><span class="source">from shutterstock.com</span></span></figcaption></figure><p>As voters head to the polls, <a href="https://www.abc.net.au/news/2019-04-29/poll-reveals-76-per-cent-of-voters-picked-a-side-before-campaign/11056140">around one-quarter will decide who to vote for on the day</a>. Analysis shows <a href="https://www.abc.net.au/news/2019-04-17/vote-compass-election-most-important-issues/11003192">climate change and the economy</a> are foremost in voters’ minds.</p>
<p>But education remains a key issue, as evidenced by <a href="https://www.abc.net.au/news/2019-05-07/federal-election-labor-coalition-education-policy-explained/10880502">a flurry of education-related announcements</a> in the final stretch of the campaign.</p>
<p>Here’s what you need to know about the major parties’ education commitments, and what the millions and billions here and there really mean.</p>
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Read more:
<a href="https://theconversation.com/how-has-education-policy-changed-under-the-coalition-government-113921">How has education policy changed under the Coalition government?</a>
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<h2>Early childhood education and care</h2>
<p>Two years of high-quality, play-based learning at preschool can have a <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/10/Two-Years-are-Better-than-One.pdf">significant impact</a> on children’s development. It can put them <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/10/Two-Years-are-Better-than-One.pdf">close to eight months ahead</a> in literacy by the time they start school. The benefits are <a href="https://www.aihw.gov.au/getmedia/321201fc-ca0c-4c20-9582-7c3dc5c9d1b9/19438.pdf.aspx?inline=true">greatest for children from disadvantaged backgrounds</a>, which makes preschool a valuable tool for reducing inequality.</p>
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Read more:
<a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">Both major parties are finally talking about the importance of preschool – here's why it matters</a>
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<p>Labor has promised to make childcare free for most low-income households and to provide up to an 85% subsidy for households under $175,000. It has committed to <a href="https://www.theguardian.com/australia-news/2018/oct/04/bill-shorten-reveals-17bn-plan-to-fund-access-to-preschool-or-kindergarten">funding an extra year of preschool</a> for three-year-olds. This is <a href="https://www.education.act.gov.au/__data/assets/pdf_file/0004/1159357/Lifting-Our-Game-Final-Report.pdf">evidence-based</a> and builds on commitments by several states to support two years of preschool.</p>
<p>Labor has also pledged to <a href="https://www.alp.org.au/media/1878/2019_labor_fiscal_plan.pdf">increase wages for some early childhood educators</a>, to be rolled out over a decade, and to reinstate funding for the National Quality Agenda, which lapsed in 2018. This reflects the <a href="http://www.mitchellinstitute.org.au/papers/quality-key-early-childhood-education-australia/">importance of quality</a> in early childhood services, to improve outcomes for children.</p>
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<a href="https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/274303/original/file-20190514-60567-16s1axn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<span class="caption">Both the Coalition and Labor are taking early childhood education and care seriously this election.</span>
<span class="attribution"><span class="source">from shutterstock.com</span></span>
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<p>The Coalition is taking a more cautious approach to spending on the early childhood sector. <a href="https://www.theaustralian.com.au/nation/politics/review-of-preschool-funding-a-concern/news-story/9a750093c75df2cf750d6ead8e57cfc1">It has pledged funding for four-year-old preschool</a>, but only for another year, and it has not renewed funding for the National Quality Agenda.</p>
<p>The Coalition will likely retain the <a href="https://www.abc.net.au/news/2018-07-01/child-care-subsidy-changes-what-you-need-to-know/9924950">means-tested subsidy</a> introduced as part of its major childcare reforms in 2018. While these reforms benefited an estimated one million lower-income families, the means test also left around 280,000 families worse off, <a href="https://theconversation.com/labors-childcare-plan-parents-children-and-educators-stand-to-benefit-but-questions-remain-116143">including families</a> with neither parent in work.</p>
<p>Advocates argue <a href="https://www.smh.com.au/politics/federal/funding-for-preschool-places-will-shape-australia-s-future-20181011-p50905.html">preschool should be seen as an integral component of the education system</a> and a fundamental right for all children, and all parties should take a cross-partisan approach and <a href="https://www.education.act.gov.au/__data/assets/pdf_file/0004/1159357/Lifting-Our-Game-Final-Report.pdf">commit to long-term funding</a>. The major parties are certainly not at that point yet, but there are indications they’re heading in the right direction.</p>
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Read more:
<a href="https://theconversation.com/labors-childcare-plan-parents-children-and-educators-stand-to-benefit-but-questions-remain-116143">Labor's childcare plan: parents, children, and educators stand to benefit, but questions remain</a>
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<h2>Schools</h2>
<p>Given states and territories are largely responsible for schools, federal investment should be targeted where it can make the most difference. Two key areas are <a href="https://www.thesaturdaypaper.com.au/opinion/topic/2019/04/13/the-funding-gap-education/15550776007987">needs-based funding</a>, to ensure additional support is available to students who need it the most, and central investment in research and evidence-based practice. </p>
<p>Both major parties have promised a <a href="https://www.abc.net.au/radio/programs/am/evidence-institute-measure-effectiveness-australian-education/9933872">national evidence institute</a>. <a href="http://www.tanyaplibersek.com/world_class_schools_national_press_club_address_wednesday_20_february_2019">Labor</a> has allocated funds for it, with the <a href="https://theconversation.com/dont-be-fooled-billions-for-schools-in-budget-2019-arent-new-and-what-happened-to-the-national-evidence-institute-114193">Coalition</a> yet to do so. This initiative reflects the urgent need to ensure evidence helps to shape the education system. The <a href="https://www.pc.gov.au/inquiries/completed/education-evidence/report/education-evidence-overview.pdf">Productivity Commission</a> has recommended such an institute, to connect educators and policymakers with the latest research on teaching and learning.</p>
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Read more:
<a href="https://theconversation.com/three-things-australias-next-education-minister-must-prioritise-to-improve-schools-115223">Three things Australia's next education minister must prioritise to improve schools</a>
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<p>On funding, the Coalition wants us to judge it on its reforms to the <a href="https://theconversation.com/turnbull-announces-schools-funding-and-a-new-gonski-review-77011">schools funding package</a>, which is now mostly modelled on the needs-based funding approach outlined in the Gonski Review. But funding has still not reached the recommended levels. The Coalition has supported the <a href="https://www.education.gov.au/national-school-resourcing-board">National School Resourcing Board</a> to review these funding arrangements and develop a fairer model for all schools.</p>
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<p>Labor has promised to increase funding for schools. <a href="https://www.alp.org.au/policies/fair-funding-for-australian-schools/">Labor’s offer</a> would bring schools closer to meeting the levels of funding recommended by Gonski. </p>
<p>Funding isn’t a magic bullet, but it <a href="https://www.nber.org/papers/w25368.pdf">plays an important role in improving outcomes for all students.</a>.</p>
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Read more:
<a href="https://theconversation.com/what-the-next-government-needs-to-do-to-tackle-unfairness-in-school-funding-110879">What the next government needs to do to tackle unfairness in school funding</a>
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<h2>Tertiary education</h2>
<p>Vocational Education and Training (VET) has experienced a series of unsuccessful reforms over the past decade. <a href="https://www.vu.edu.au/about-vu/news-events/news/dual-sector-vcs-call-for-more-connection-between-two-systems">VET plays an important role in the tertiary sector</a>, so it’s good to see both major parties addressing this in their platforms. </p>
<p><a href="https://www.education.gov.au/skills-and-training-budget-overview-2019-20">The Coalition’s plan</a> comes out of <a href="https://www.pmc.gov.au/news-centre/domestic-policy/vet-review-completed-and-final-report-delivered-government">a major recent review of the VET sector</a> and includes more money for apprentices and rural programs; the establishment of a National Skills Commission and a National Careers Institute; and simplifying systems for employers.</p>
<p>Labor has pledged to fund up to <a href="https://www.alp.org.au/policies/fee-free-tafe/">100,000 TAFE places</a>. It has also promised a major <a href="https://www.afr.com/news/politics/labor-proposes-once-in-a-generation-university-and-tafe-inquiry-20180222-h0whln">inquiry into tertiary education</a>, looking at VET and universities side by side. This could potentially move us towards a fairer system that puts <a href="http://www.mitchellinstitute.org.au/presentations/reconceptualising-tertiary-education/">VET and universities on an even footing</a> and better caters to the varied needs of students and employers.</p>
<p>Both <a href="https://www.alp.org.au/media/1710/190404_skills_and_training_fact_sheet.pdf">Labor</a> and the <a href="https://www.liberal.org.au/our-plan-delivering-high-quality-skills-and-vocational-education">Coalition</a> have committed to increased support for apprenticeships, through financial incentives for employers. </p>
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<p>For universities, Labor says it will bring back <a href="http://www.tanyaplibersek.com/speech_address_to_the_universities_australia_conference_canberra_thursday_28_february_2019">demand-driven funding</a>, which existed between 2012 and 2017, where universities are paid for every student studying and there is no limit on the number of students that can be admitted to courses. <a href="https://theconversation.com/labor-wants-to-restore-demand-driven-funding-to-universities-what-does-this-mean-116060">Evidence suggests</a> this has been effective in boosting studies in areas where there are skills shortages, such as health, and also appears to have improved access to education for disadvantaged groups. </p>
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Read more:
<a href="https://theconversation.com/demand-driven-funding-for-universities-is-frozen-what-does-this-mean-and-should-the-policy-be-restored-116060">Demand-driven funding for universities is frozen. What does this mean and should the policy be restored?</a>
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<p>Due to costs, the Coalition has moved to a <a href="https://www.smh.com.au/opinion/bold-and-successful-experiment-comes-to-premature-end-with-22-billion-university-funding-cut-20171220-h07tfa.html">funding model based on population</a> and <a href="https://docs.education.gov.au/node/52006">university performance</a>. It has also promised <a href="https://www.liberal.org.au/our-plan-quality-education">extra support</a> for regional students and universities. This could help address the <a href="https://research.acer.edu.au/cgi/viewcontent.cgi?article=1228&context=research_conference">large gaps</a> in university participation between young people from major cities, and rural and regional Australia.</p>
<h2>Making an informed choice</h2>
<p>When casting our votes, we would do well to look past the dollar signs, and think about how each party is shaping an education system that will deliver quality learning for all Australians, from all kinds of backgrounds, from childhood through to adulthood.</p>
<p>The Coalition has delivered needs-based funding for schools and promises a greater focus on regional and rural students in all sectors. But there are some apparent gaps in early learning and tertiary policy and funding.</p>
<p>Labor has pledged more funding in all sectors. It has made a prominent commitment to early childhood education and care. However, <a href="https://theconversation.com/compare-the-pair-key-policy-offerings-from-labor-and-the-coalition-in-the-2019-federal-election-116898">Labor’s policies are expensive</a> and would need to be implemented effectively to make sure they achieve the intended outcomes for students and deliver the <a href="http://www.mitchellinstitute.org.au/reports/costs-of-lost-opportunity/">financial benefit to the economy</a> in the long-term.</p>
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Read more:
<a href="https://theconversation.com/compare-the-pair-key-policy-offerings-from-labor-and-the-coalition-in-the-2019-federal-election-116898">Compare the pair: key policy offerings from Labor and the Coalition in the 2019 federal election</a>
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<img src="https://counter.theconversation.com/content/117097/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Kate Noble does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>If you’re confused about all the millions and billions thrown around for education by the two major parties, here’s the low-down on what the policies actually mean.Kate Noble, Education Policy Fellow, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1161432019-04-28T20:17:20Z2019-04-28T20:17:20ZLabor’s childcare plan: parents, children, and educators stand to benefit, but questions remain<figure><img src="https://images.theconversation.com/files/271261/original/file-20190428-194616-rzox.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Hundreds of thousands of Australians parents would be in work if childcare was more affordable.</span> <span class="attribution"><span class="source">from shutterstock.com</span></span></figcaption></figure><p>Labor’s proposed <a href="https://www.smh.com.au/federal-election-2019/labor-plans-4-billion-childcare-overhaul-20190427-p51hrw.html?utm_medium=Social&utm_source=Twitter#Echobox=1556400029">A$4 billion reform to the childcare subsidy</a> on Sunday confirms that <a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">early childhood is a key policy issue</a> this election. This is on top of Labor’s previous announcement of <a href="https://www.theguardian.com/australia-news/2018/oct/04/bill-shorten-reveals-17bn-plan-to-fund-access-to-preschool-or-kindergarten">15 hours of funded preschool</a> for every Australian three-year-old.</p>
<p>The latest announcement will no doubt be welcomed by <a href="https://www.theage.com.au/federal-election-2019/it-s-not-viable-for-me-to-work-ninety-per-cent-tax-for-a-day-s-work-20190419-p51fq4.html">families balancing the costs of childcare against the benefits of participation in paid work</a>. In 2015, the Productivity Commission estimated <a href="https://www.pc.gov.au/inquiries/completed/childcare/report/childcare-overview.pdf">around 165,000 Australian parents would like to work more</a>, but were prevented due to poor accessibility or affordability of suitable childcare. </p>
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Read more:
<a href="https://theconversation.com/shorten-promises-4-billion-for-child-care-benefitting-887-000-families-116128">Shorten promises $4 billion for child care, benefitting 887,000 families</a>
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<p>Under <a href="https://theconversation.com/bill-shorten-promises-4-billion-for-child-care-benefitting-887-000-families-116128">Labor’s proposal</a>, families on incomes up to A$174,000 with children under five would be better off on average by A$26 a week, or A$1,200 a year per child. Most families earning up to A$69,000 would get their childcare free. Currently, they <a href="https://www.abc.net.au/news/2018-07-01/child-care-subsidy-changes-what-you-need-to-know/9924950">receive a subsidy</a> of 85%. Labor’s proposal would save them up to A$2,100 annually per child.</p>
<p>The current subsidy gradually tapers down as earnings increase. The lowest subsidy available is 20% for the highest-earning families, before it cuts out at A$351,258.
Families on incomes above A$174,000, under Labor’s plan, would continue to receive the same level of support as under current arrangements.</p>
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<p>The current subsidy was introduced as part of the Coalition’s <a href="https://www.education.gov.au/child-care-subsidy-0">major childcare reforms</a> (worth A$3.5 billion) in 2018, which included a means-tested subsidy and removal of annual caps. The reforms <a href="https://www.abc.net.au/news/2018-07-01/child-care-subsidy-changes-what-you-need-to-know/9924950">benefitted an estimated one million lower-income families</a> – but also left around 280,000 families worse off, including <a href="https://theconversation.com/childcare-funding-changes-leave-disadvantaged-children-with-fewer-hours-of-early-education-51488">families with neither parent in work</a>. </p>
<p><a href="http://csrm.cass.anu.edu.au/sites/default/files/rsss/Childcare_reforms.pdf">ANU modelling</a> had predicted that while the reforms would benefit low-income families, the <a href="https://www.education.gov.au/child-care-subsidy-activity-test">activity test</a> would mean families not working or studying would be at risk of missing out.</p>
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Read more:
<a href="https://theconversation.com/childcare-funding-changes-leave-disadvantaged-children-with-fewer-hours-of-early-education-51488">Childcare funding changes leave disadvantaged children with fewer hours of early education</a>
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<p>This is where early childhood policy gets complicated. Policies can be motivated by different goals. The Coalition reforms were aimed at encouraging parental workforce participation. Labor’s proposal for the childcare subsidy seem similarly motivated.</p>
<p>But parents are not the only beneficiaries of childcare subsidies. Quality childcare also benefits children’s learning. Many childcare programs for four-year- olds (and increasingly, three-year-olds), <a href="http://www.mitchellinstitute.org.au/wp-content/uploads/2016/10/Two-Years-are-Better-than-One.pdf">incorporate preschool</a>. For children of all ages, Australian childcare providers must provide a play-based learning program, guided by the <a href="https://www.education.gov.au/early-years-learning-framework-0">national framework</a>. </p>
<p>That’s why childcare and preschool services are all known as <a href="https://research.acer.edu.au/cgi/viewcontent.cgi?article=1009&context=resdev">early childhood education and care</a>: whenever children are being cared for, they are also learning. Even a <a href="http://files.acecqa.gov.au/files/QualityInformationSheets/QualityArea2/EffectiveToiletingandNappyChangingProcedure.pdf">nappy change</a> offers opportunities to support children’s learning, as skilled educators use <a href="https://www.ecrh.edu.au/docs/default-source/resources/ipsp/policies-in-practice-interactions-with-children.pdf?sfvrsn=6">playful, caring interactions</a> to help young children develop skills like communication, trust and well-being. </p>
<p>Educators can also help families recognise these opportunities, so learning continues at home. Children in low-income households often have <a href="https://www.aracy.org.au/publications-resources/command/download_file/id/146/filename/The_implications_of_poverty_on_Children">fewer opportunities to learn</a>, due to factors such as stress and limited resources for investment. </p>
<p>By supporting access to quality early childhood services, governments can help families learn everyday ways to enhance their children’s learning.</p>
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Read more:
<a href="https://theconversation.com/both-major-parties-are-finally-talking-about-the-importance-of-preschool-heres-why-it-matters-114974">Both major parties are finally talking about the importance of preschool – here's why it matters</a>
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<p>To maximise benefits for children, all early childhood services need <a href="https://www.education.act.gov.au/__data/assets/pdf_file/0004/1159357/Lifting-Our-Game-Final-Report.pdf">skilled, professional staff</a>. Labor’s promised <a href="https://www.canberratimes.com.au/story/6093569/labors-7b-splash-on-dentist-bills-childcare-and-wages/">wage increase of 20% over eight years</a> for early childhood educators addresses an issue that has been in the too-hard basket for too long. </p>
<p>Research has shown many Australian early childhood educators are <a href="https://www.sbs.com.au/topics/life/culture/article/2018/03/27/surviving-childcare-workers-wage">paid so little</a> they are <a href="https://eprints.qut.edu.au/101622/1/Brief_report_ECEC_Workforce_Development_Policy_Workshop_final.pdf">financially dependent on others in their households</a> — ironically while enabling financial independence for other working women.</p>
<p>Low wages place downward pressure on the quality of early childhood programs. <a href="http://vuir.vu.edu.au/37853/">Educators’ qualifications are lowest in low-income communities</a>, where families cannot afford to meet the costs of higher wages. Government subsidies can help to break the link between educators’ wages and families’ ability to pay fees, so the best educators can reach the children who most need them.</p>
<p>Of course, the devil is in the detail when it comes to policy implementation. Labor has <a href="https://www.theaustralian.com.au/nation/politics/federal-election-2019-campaign-day-18-coalition-to-cap-refugees-alp-in-childcare-pledge/news-story/339c874c089542bc3a1e1667c25f2b98">not specified how the wage increases will be delivered</a>, instead committing to further consultation with the sector. Big questions remain about how government subsidies – to parents or educators – will be absorbed into a sector with <a href="https://www.abc.net.au/news/2009-05-12/30784">for-profit and not-for-profit providers</a>. </p>
<p>Close monitoring of the impact on childcare costs will be essential. <a href="https://www.smh.com.au/federal-election-2019/labor-plans-4-billion-childcare-overhaul-20190427-p51hrw.html?utm_medium=Social&utm_source=Twitter#Echobox=1556400029">Labor’s plan</a> includes asking the Australian Competition and Consumer Commission to investigate “excessive” childcare fees. But can support for families be increased without stimulating an increase in fees? Can educators be supported to earn a fair wage, while keeping prices fair for families?</p>
<p>There is much to be gained by engaging with these questions. When parents are working, the <a href="https://womensworkforceparticipation.pmc.gov.au/sites/default/files/towards-2025-strategy.pdf">economy benefits</a>. When children are learning, everyone benefits, as the impact of early learning lasts <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/351499/RB354_-_Students__educational_and_developmental_outcomes_at_age_16_Brief.pdf">throughout school and beyond</a>. Countries like <a href="https://www.oecd.org/education/school/2479039.pdf">Sweden</a> and <a href="http://www.oecd.org/finland/2476019.pdf">Finland</a> show what may be possible when parents’ and children’s needs are prioritised equally. </p>
<p>We owe it to Australia’s children to keep these issues on the election agenda.</p><img src="https://counter.theconversation.com/content/116143/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jen Jackson has previously received funding from the Australian Research Council for research on the Australian early childhood workforce.</span></em></p>Labor is promising to help hundreds of thousands of families have access to more affordable childcare. This is an important investment but the details of how it will work must be given priority.Jen Jackson, Education Policy Lead, Mitchell Institute, Victoria UniversityLicensed as Creative Commons – attribution, no derivatives.