The Australian government is working towards implementing universal childcare, with Prime Minister Anthony Albanese aiming for it to be a key legacy. The government defines universal childcare as care that is "available, quality and affordable," though it has not yet committed to a specific model. Overseas examples include $10 a day capped care in parts of Canada and fees tied to the minimum wage in Estonia.
Two consulting firms have been commissioned to provide reports on the challenge. Deloitte is preparing a report on the cost of delivering childcare services across Australia, which is due by the end of the year. KPMG has also submitted a report outlining the business case for government ownership and leasing of childcare centres, which the government has not released.
The government has announced the first round of grants from its $1bn building early education fund, allocating $17.3m to three not-for-profit providers to establish four childcare centres in outer metropolitan and regional areas. This initiative aims to increase the share of not-for-profit providers in the sector, which is currently 70% privately run. Goodstart Early Learning, a not-for-profit recipient of the fund, is exploring taking over up to 31 centres from Edge Early Learning, which recently entered administration.
Childcare fees increased by 7.3% in the 12 months to August, more than double the inflation rate. The current government subsidy covers 90% of fees for families with a household income up to $88,520, tapering off at higher incomes. The Productivity Commission previously suggested options including free childcare for lower-income families or a flat $10 a day subsidy.