30 JanACCC calls for fundamental change
The long-awaited final report from the Australian Competition and Consumer Commission’s (ACCC) childcare inquiry was released this week. ELAA is pleased to note that the report reflects the feedback we provided at the inquiry’s outset and in our submission. Its findings and recommendations underscore the importance of addressing the needs of children, their families, and the services they engage with.
The report highlights several current issues:
- low-income families spend a larger portion of their income on out-of-pocket fees
- families in lower socioeconomic brackets are less likely to enroll their children in Early Childhood Education and Care (ECEC) programs
- supply in regional and remote areas is inadequate
- fees have been outpacing inflation and wage growth since the introduction of CCS (Child Care Subsidy)
- ECEC serves the initial point of contact with education for most Australians. However, the lack of coherence in the existing model complicates access for families and burdens providers in delivering quality outcomes for children. The ACCC suggests that a one-size-fits-all funding and policy approach won’t sufficiently address the sector’s diverse needs.
We’re pleased to see that the report recommends:
- removing, relaxing, or significantly altering the current activity test
- considering a market stewardship role for government, at both federal and state/territorial levels, to oversee, regulate, and shape childcare markets, identifying underserved or unserved children and families
- further exploring the advantages and challenges of ‘supply-side’ subsidies e.g. funding that enables a service to physically expand and / or cater to a more diverse market, especially as a longer-term consideration, along with other appropriate forms of market intervention.
In our submission to the ACCC, we emphasised the need for system stewardship to extend to local government. The report’s findings support the idea that ECEC is highly localised and requires nuanced approaches. If the Australian government reviews current stewardship systems, ELAA and the ACCC believe it should consider the social benefits to communities, not just profitability and viability. A well-managed market that encourages quality growth will benefit both kindergarten and childcare providers and the families they serve.
The report provides a thorough analysis of the strengths and weaknesses within the ECEC sector. At ELAA, we’re eager to collaborate with governments and our members to address existing barriers within the system.
You can read the full report CLICK HERE.
