More reform to the childcare sector is on the way after the Albanese government announced its 2023 budget. The boost to the sector will help more families access...
In this article
More reform to the childcare sector is on the way after the Albanese government announced its 2023 budget. The boost to the sector will help more families access childcare and improve workforce support.
The federal government announced its budget in early May. A driving focus was government-funded support for Australians as families face a cost-of-living crisis and excessive inflation levels.
During the budget announcement, the government pledged to spend $4.5 billion on early childhood care.
The changes centred primarily around the Childcare Subsidy (CCS), and funding to upskill staff in the Early Childhood Education and Care (ECEC) sector.
Changes to the childcare subsidy
Revision of the childcare subsidy was first announced as part of the ‘Responsible budget’ in October 2022. It was put back on display at the 2023-2024 budget reveal to showcase the additional support offered to families who need it most.
The revision includes an increase in the maximum subsidy rate for families with multiple children in care, potentially enabling these households to afford care and earn income outside the home.
Here are the main changes:
- Families with a combined household income up to $80,000 will see their maximum CCS amount increase from 85% to 90%.
- The subsidy for families earning over $80,000 will start at 90% and decrease by 1% for every $5,000 of income earned.
- The low income limit for Additional Child Care Subsidy Transition to Work will increase to $80,000.
- The annual cap on subsidies has been removed for households with combined incomes above $189,390.
Families that have more than one child aged 5 and under in care can still get a higher rate for one or more children.
Subsidy changes will come into effect on 1 July 2023.
Professional development support for ECEC workers
It’s been no secret that the early childhood sector has faced staff shortages as demand for childcare surged over recent years. In addition, staff upskilling was put on hold throughout the two-year COVID-19 disruption.
In response, the government is pouring funding into supporting staff in professional development and training programs by paying the costs of the training and the additional staff to fill in for offsite team members. The program is estimated to benefit 75,000 ECEC staff.
The government hopes the workforce support will attract high-quality and skilled staff, and keep them on board.
Ultimately, the aim is to provide the highest quality of education and care for children’s development and wellbeing, and support the critical need for more ECEC programs and staff.
An update of the Quality Early Learning Framework
The changes to the Quality Early Learning Framework will help improve consistency and quality of care at centres all across Australia. Funding is in place to roll out the updated framework officially in 2024, although educators and centre staff can access the framework throughout 2023 in preparation.
An overall boost for ECEC
These reforms and government funding arrive on the heels of other changes already taking place to make early childhood care more accessible for families.
For instance:
- Starting January 2023, the Queensland Government is investing $1 billion over 5 years to give children access to free or cheaper preschool services.
- Victoria’s Best Start, Best Life reform gives 3- and 4-year-olds access to free preschool care starting in 2023. All of Victoria’s kinder services have opted into the program.
- New South Wales’s [Start Strong program](https://www.childcare4sale.com.au/nsw-launches-free-childcare-and-first-ever-state-wide-ecec-review/) gives 3- and 4-year-olds access to at least 600 hours of low or no-cost preschool from 2023.
The changes to subsidies and drive to improve the quality of ECEC as well as outcomes for children are proving once again how critical the sector is for families. The early learning industry is a driving force in Australia’s economy, and the new funding reflects how essential it is to support Australia’s families and ECEC staff.
Buying A Childcare Centre
With the demand for care at peak levels and provision in place for more families to access quality care, it’s an excellent time to consider buying a childcare centre as an investment opportunity or selling while demand is high. You can contact a member of our team to see how you can benefit from the growth of the early childhood sector.