What the Productivity Commission’s Childcare Plan Means for Families
The Productivity Commission has released a transformative report on Australia’s childcare system, outlining a path to universal childcare access by 2036. While some changes are years away, the recommendations could make early childhood education and care more accessible and affordable for families in the near future.
HCPA is dedicated to assisting providers in delivering the highest standards of care and compliance with the complex regulatory landscape in the childcare sector.
Key Reforms on the Horizon
- Free Childcare for Low-Income Families
- – From 2026, families earning under $80,000 will receive fully subsidised childcare.
- – Families with multiple children under five earning up to $140,000 will also receive a 100% subsidy.
- More Support for Middle-Income Families
- – Families earning up to $580,000 annually will see increased subsidies, making nearly all families better off.
- Removing Barriers to Access
- – The activity test, which ties childcare subsidies to work or study requirements, could be removed by 2024. This change would open the door for more children, especially from low-income families, to benefit from early education.
Targeting Equity and Regional Access
The report recognizes the inequities in Australia’s childcare system. Families in remote areas often face limited access due to low population density. The commission recommends targeted funding to ensure families in underserved regions aren’t left behind.
By 2025, subsidies could also extend to wrap-around care in preschools, giving families more flexible options that combine daycare with early learning programs.
Building a Stronger Childcare Workforce
The report emphasises the need for skilled educators to deliver high-quality care. Following a recent 15% pay increase, additional measures include:
- Accelerating educator qualifications.
- Standardizing registration requirements across the sector.
These steps aim to attract and retain professionals, ensuring every child receives the care they deserve.
HCPA provides child care providers with the tools and strategies to address these challenges head-on; and ensures providers are well-prepared for the changing landscape, from workforce management solutions to policy compliance guidance.
Long-Term Vision and Challenges
The report’s ultimate goal is to provide three days of childcare per week for every child under five by 2036. While this universal system is still years away, critics argue that more immediate action is needed to address affordability and access gaps for today’s families.
Why These Changes Matter
Childcare is more than a convenience—it’s a critical investment in Australia’s future. Accessible early education supports children’s development, enables parents to work, and promotes equity across communities.
With reforms starting as early as 2024, Australian families can look forward to a childcare system that better supports their needs, while the government works toward the ultimate goal of universal access.
HCPA is an all-in-one solution for Child Care providers, supporting them with registration, growth and consulting. Contact us here or call 03 9084 7472 to learn how we can help you succeed.
SOURCES | The Conversation ‘The Productivity Commission wants all Australian kids to get 3 days a week of childcare – but it won’t be until 2036’
