Productivity Commission recommendations a "game changer" if governments "bold enough" for reform, SNAICC says

Dechlan Brennan
Dechlan Brennan Published September 18, 2024 at 12.30pm (AWST)

The peak body for Indigenous children says the latest Productivity Commission's report on reforming early childhood education and care will be a "game changer" for First Nations children if governments are bold enough to implement it.

On Wednesday, A path to universal early childhood education and care, the final report of the Productivity Commission's inquiry into early childhood education and care (ECEC) was released.

The Commission said the report offers a roadmap to a "high-quality universal early childhood education and care system that is accessible, within the means of all families, equitable and inclusive for all children".

It would ensure every child aged 0–5 has access to high-quality ECEC for at least 30 hours - or three days a week - for 48 weeks of the year.

"Children experiencing vulnerability and disadvantage benefit the most from quality early childhood education and care, but they are currently the least likely to attend," Associate Commissioner Deborah Brennan said.

To achieve the long-term goal of a universal ECEC system, the report recommended the Australian government ensure that cost is no barrier for children accessing education, even if they come from a low-income family.

It also recommends abolishing the activity test, as well as increasing the rate of the Child Care Subsidy for families on incomes of up to $80,000 to 100 per cent of the hourly rate cap.

In response, SNAICC – National Voice for our Children said they welcomed the report and urged all jurisdictions to enact the recommendations.

Chief executive Catherine Liddle said governments across the country had the chance to enact courageous reforms that will make significant inroads into closing the gap.

"The report recommendations, if put in place, could chart a very different course for many of our children and families," Ms Liddle said.

"The Productivity Commission acknowledges the particular barriers facing Aboriginal and Torres Strait Islander families in accessing culturally safe, sustainable, quality ECEC and recognises the life-changing benefits of being able to access these services."

The activity test, which is linked to the amount that a family works, studies, or volunteers with the amount of Child Care Subsidy they receive, is a barrier to educational access for low-income families whilst doing little to incentivise labour force participation, the report said.

"A child's entitlement to at least three days of ECEC a week should not depend on how much their parents work," Associate Commissioner Brennan said.

SNAICC have long campaigned for the abolition of the test. The report also recommended a new funding model for Aboriginal community-controlled (ACCO) ECEC services, recognising their "unique role and additional wrap-around service provision".

"The Productivity Commission report supports what SNAICC has long advocated – that ACCO services provide the best outcomes for our children, so they are developmentally ready for school and enjoy better outcomes later in life," Ms Liddle said.

"Governments have a strong body of evidence to inform the change needed in the ECEC system. This PC report, the ACCC report from earlier this year, the many SNAICC reports and those from other sector experts present a roadmap for reform."

Earlier this year, the federal government released their first Early Years Strategy (EYS), with SNAICC saying at the time the strategy reflected the government's "commitment to ensuring universal access to quality early childhood education and care".

In launching the strategy, the federal government said children's policy, funding, and programs "should no longer be siloed", with better integration and coordination needed to "give all children in Australia the best start in life".

The government said the ten-year roadmap sets out an "overarching vision" for children in Australia, along with clear goals to ensure little children aged 0-5, and their families, can learn, grow and thrive.

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