16 MayFederal Budget 24/25 Analysis: “Responsible and Restrained”
This week the Australian Treasurer, the Hon. Dr Jim Chalmers delivered his third national budget. This budget is described as “responsible and restrained”, focusing on easing the cost-of-living pressures and investing in a future made in Australia. A highlight is its acknowledgement of the value the care and support workforce bring to Australia’s economy and society.
Positive Progress on advocating for sector wage increases
ELAA and our peers have been advocating for the Early Childhood Education and Care (ECEC) workforce for many years, which is why we are pleased that the budget commits to increasing educator wages to accurately reflect the vital work they contribute to Australian families.
We warmly congratulate our early childhood peers on the progress they have made towards increased wages announced by the government last night, achieved via a multi-employer bargaining (MEB) process in Canberra. We note the funds provisioned to support a wage increase in the budget only apply to employers who have signed up to the MEB and not to educators under the modern awards, such as the Children’s Services Award 2010 or teachers and educators covered by the VECTEA. As a member peak body for the ECEC sector, we also hope, if possible, that the increase in wages could be extended to cover the broader sector and benefit a larger number of educators, ensuring fair and sustainable compensation for the overall sector.
$30 million over two years in IT and payment services
The budget allocated $30 million over two years in IT and payment services to deliver on the commitment to provide funding towards a wage increase – this will be in response to the lack of an existing system to distribute funding for the future MEB pending the Fair Work Commission process
Inclusion support
ELAA is also pleased with the investment of a further $98.4 million to the Inclusion Support Program (ISP). With the ever-increasing demand for additional support for children, their families and the educators that support them, this commitment appreciates the value of implementing inclusive practices. While the future of the ISP and inclusion policy is shaped and the National Disability Insurance Scheme reforms are enacted, stability in funding for this program is welcomed by ELAA.
Integrity related measures
We welcome the additional investment of $98.6million to strengthen the payment and accuracy of the Child Care Subsidy (CCS). However, ELAA hoped to see more action taken on the Activity Test, by removing or reducing it further. We look forward to its removal pending the final recommendations made by the Productivity Commission’s inquiry into ECEC later this year.
Investment to strengthen fraud and non-compliance activities
The budget also included the following investments to strengthen fraud and non-compliance activities:
- $84.2 million over four year (and $18.4 million per year ongoing) to the Department of Education to increase provider audits and manage the centralised collection of child care gap fees in the Family Day Care and In Home Care sectors
- $8.3 million over four years from 2024–25 (and $1.2 million per year ongoing) to Services Australia to upgrade the Child Care Subsidy system to support new compliance measures
- $4.8 million over four years from 2024–25 to the Australian Taxation Office to ensure satisfactory engagement with the Australian tax system regarding fitness and propriety requirements of existing and new child care providers
- $1.3 million over four years from 2024–25 (and $0.3 million per year ongoing) to the Australian Transaction Reports and Analysis Centre to assist the Department of Education in identifying individuals of high, unexplained wealth with connections to the child care sector.
Aboriginal and Torres Strait Islander related measures
ELAA was glad to see a commitment to funding SNAICC and their sister peak the National Aboriginal and Torres Strait Islander Education Corporation (NATSIEC) with $29.1 million to partner with the Government on matters affecting First Nations children. This is a positive step toward self-determination, noting SNAICC’s CEO Catherine Liddle spoke to the lack of investment in Aboriginal-led decision-making and partnerships with the way they do business with Aboriginal Community Controlled Organisations (ACCO’s).
Further measures for First Nation communities included:
- $110.0 million over four years to accelerate action against the National Agreement on Closing the Gap Priority Reforms in the Education portfolio and extend programs supporting education outcomes.
- $2.4 million over three years to finalise and implement the First Nations Teacher Strategy to improve the attraction and retention of First Nations teachers.
Investment in the Early Years Strategy
The Government will provide $14.3 million across a five-year period to extend the existing community support for families and caregivers, improving child outcomes in line with the Strategy. To read the 10-year Early Years Strategy, CLICK HERE.
ELAA will continue to advocate for our vision for excellence and equity in ECEC and look forward to continuing our collaboration with state and federal governments and relevant stakeholders to address our members’ needs.
To read the 2024-2025 budget papers, CLICK HERE.
