Australian Think Tanks Advocate for $10-A-Day Childcare Reform
The Centre for Policy Development has recommended that all young children should have access to at least three days a week of childcare services at low or no cost.
An Australian think tank has urged the Labor government to introduce a childcare reform that would allow low-income families to pay as little as $10 (US$6.60) a day or no fee for the service to address the current issues within the system.
However, evidence from Canada suggests that such a reform may not achieve the desired outcomes.
This study builds upon a report by the Productivity Commission that recommended the implementation of a universal childcare system in Australia.
The CPD stated that the current system, where families with young children receive up to a 90 percent subsidy for childcare services, has significant shortcomings.
These shortcomings include complex subsidy and funding structures, limited accessibility for disadvantaged families, a shortage of educators and services, and high costs for parents and families.
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The think tank also noted that Australian families pay some of the highest childcare fees among OECD countries, with 22 percent of Australian children entering school with developmental challenges.
Moreover, approximately 126,000 children miss out on early learning due to activity test regulations and other factors.
The activity test determines the amount of subsidised childcare hours per fortnight a family can receive based on the parents’ working hours.
Prime Minister Anthony Albanese welcomed the CPD study, expressing the government’s ambition to provide universal childcare.
“Universal childcare provision, as seen in various other countries, is a valuable national asset,” he stated.
Proposed Reforms
Under the proposed reforms, the CPD suggests that all young children should have access to at least three days a week of low-cost or free childcare services.
For disadvantaged children, the think tank recommends offering them five days a week of free care.
Additionally, the CPD emphasizes the need to replace the current childcare subsidy system with a “child-centered” model that provides direct, foundational funding to all service providers.
The think tank also proposes defining clear roles and responsibilities between federal and state governments regarding the new childcare model.
“The Commonwealth would be responsible for the national entitlement, while states and territories would oversee system management—collaborating directly with services on quality, access, inclusion, and connecting services with other support systems,” stated the report.
Other recommendations include supporting childcare services in small communities and offering incentives and assistance to employees for maintaining a sustainable workforce.
“By adopting these reforms, we can ensure that every child has access to the quality education and care they deserve,” stated CPD program director Katherine Oborne.
The CPD did not provide an estimate of the cost to Australian taxpayers for implementing its proposal.
Lessons From Canada
Despite the growing push for a universal childcare system and affordable childcare in Australia, some education experts caution that such a system may not function as intended and could lead to significant challenges.
One major issue with the policy was a shortage of childcare services, as providers struggled to meet the increased demand from parents.
Reports indicated that major Canadian cities, such as Vancouver and Ontario, faced shortages of tens of thousands of daycare spaces.
The rising demand also placed a significant financial strain on many service providers, putting them at risk of closure due to insufficient government funding.
Amid the severe childcare shortages, there was a notable decrease in children accessing childcare services.
Data from Statistics Canada showed that the number of children aged zero to five in childcare across Canada declined by approximately 118,000 from 2019 to 2023.
