The Australian federal government has released a significant report from the Productivity Commission focused on the childcare system, emphasizing affordability as a priority. Key recommendations include:
- Fully Subsidized Childcare: Starting in 2026, families earning under A$80,000 should receive fully subsidized childcare.
- Universal Access by 2036: Aiming for all families with children under five to access three days of high-quality early education and care.
- Increased Subsidies: Raise the maximum childcare subsidy from 90% to 100% for families earning up to A$80,000 and for families with multiple children under five earning under A$140,000.
- Removal of the Activity Test: The report recommends eliminating the activity test, which currently requires parents to work or study a minimum of eight hours biweekly to qualify for subsidies, to improve access for low-income families.
- Outside School Hours Care: State governments should ensure that children aged five to 12 have access to outside school hours care in public schools.
- Targeted Funding for Remote Areas: The report addresses challenges in sparsely populated areas, recommending targeted funding to improve service provision.
