House debates

Monday, 19 August 2024

Private Members' Business

Child Care

10:59 am

Photo of Zoe DanielZoe Daniel (Goldstein, Independent) Share this | | Hansard source

I move:

That this House:

(1) acknowledges that:

(a) early childhood education and care (ECEC) delivers benefits to children, families and the economy; and

(b) a universal ECEC system:

(i) means making quality services accessible to all children and families;

(ii) is an opportunity to unlock productivity and growth across the workforce and allow more women into the workforce if they want to work; and

(iii) would address cost of living pressures, productivity, gender equality and give all children the best start in life;

(2) notes that:

(a) ECEC sets children up for life;

(b) by the age of five, 90 per cent of a child's brain is fully developed;

(c) children who attend quality early childhood education are twice as likely to reach their developmental targets once at school;

(d) children experiencing disadvantage and vulnerability—who are likely to benefit most from ECEC services—are less likely to attend ECEC;

(e) the cost of ECEC in Australia is amongst the highest in OECD countries, representing a major cost of living pressure for many households; and

(f) ECEC enables mothers, in particular, to maintain a connection to the labour force when children are very young and allows for increasing hours of work as children grow; and

(3) calls on the Government to commit to, and provide, a pathway and timeline towards universal early education and care.

I brought this motion to the House because we have a real opportunity to transform early childhood education and care in this country. It seems incredible to me that a sector as important as this is out of reach for so many families, and that the cost of early childhood education is often the second highest expense in a household after the mortgage. Rising fees, staff shortages, a lack of funding and a lack of vision have plagued what should be an accessible and affordable place for children to learn.

I want to start with cost because the cost of living is the biggest issue facing Australians right now. The cost of early childhood education in Australia is among the highest in the OECD. For a lot of parents, the cost of care means they simply can't afford to work. It's often referred to as a cost-of-working crisis. The HILDA survey collects data on spending for more than 7,000 households every year. It's found that about 83 per cent of families spend more on child care than on utilities or clothing for all members of the household, 70 per cent spend more on child care than transport and 30 per cent spend more on child care than groceries.

Unaffordable child care often results in parents, usually women, deciding not to work, beginning lifelong gendered financial disadvantage. Yet again, women are bearing the brunt of decades of male centric priorities. But, at last, the conversation is changing. The Women's Economic Equality Taskforce put child care firmly on the political agenda when it stated that Australia should move towards adopting a universal childcare system.

The Productivity Commission's draft report has recommended that every child have access to three days of quality child care a week and, for families earning less than $80,000, it should be free. The Prime Minister has given his commitment to working towards a universal system. This is a commitment that I not only support. It's also one that I will fight to see delivered for women, for families, for children and for the economy.

Women in Australia are among the most highly educated in the world and have similar levels of labour force participation to men until they have children, when they begin to fall behind and never catch up. The differences are most pronounced in families with children under the age of five. The extent to which child care is available and affordable has consistently been found to lift rates of female participation. The Impact Economics and Policy 2023 report found that if labour force participation rates for females in families with children under five were to increase to match male participation rates, there would be an additional 301,000 women in families with children under five in the labour force. Our job as policymakers is to remove this barrier of returning to work for the sake of women, families and the economy. Yes, affordable and accessible child care is critical to growing the economy. More women working boosts economic growth and tax revenue.

Of course, early childhood education is crucial for children. By the age of five, 90 per cent of a child's brain is fully developed. Children who attend quality early childhood education are twice as likely to reach their development targets when they get to school. Early childhood education is the golden ticket. Children, families, women, the economy—it ticks all the boxes. This is why we must find a timely pathway to a universal system.

I support the Productivity Commission and the Centre for Policy Development recommendations that every child have access to three days of quality child care a week as a first step. That would give all children the start they need by increasing attendance, especially for those experiencing disadvantage. It would help alleviate cost-of-living stress for families and it would advance gender equality by getting women back into the workforce.

The government's decision to fund a 15 per cent pay increase for educators, which I strongly fought for, is also a win for gender equality in the female dominated early childhood sector. A valued and respected workforce underpins everything. Now is the time to start shaping the system we want for our children.

More than 25 years ago, Quebec introduced universal $5-a-day day care. Today, the workforce participation rate for women aged 25 to 54 is 89.4 per cent. Increased tax paid by those working women has entirely offset the cost, and Canada is now introducing $10-a-day child care to the rest of the country. Now is Australia's chance to move with certainty in the same direction.

Photo of Bridget ArcherBridget Archer (Bass, Liberal Party) Share this | | Hansard source

Is there a seconder for the motion?

Photo of Allegra SpenderAllegra Spender (Wentworth, Independent) Share this | | Hansard source

I second the motion and reserve my right to speak.

11:04 am

Photo of Brian MitchellBrian Mitchell (Lyons, Australian Labor Party) Share this | | Hansard source

I thank the member for Goldstein for raising this private members' business and allowing me to reflect on the important work that the Albanese Labor government is undertaking in the area of early childhood education and care. Our government is committed to recognising and harnessing the transformative benefits early childhood education provides for children and families across the country; the member for Goldstein has well articulated those.

The Australian government understands the early years of a child's life are crucial. This period lays the foundation for cognitive, social and emotional development. Investing in early childhood education is not just about the present; it's about shaping a better future. It's about providing every child with the opportunity to thrive, regardless of background or circumstance. That's why we are on the path to building a universal early childhood education and care system accessible for all families. It takes time, member for Goldstein, but we'll get there, I'm sure.

In pursuit of this aim, the Australian Labor government has already taken significant steps to make early childhood education and care more accessible for more Australian families. Our cheaper childcare reforms are testament to this commitment, making early childhood education more affordable for more than a million families. These reforms have reduced out-of-pocket costs for centre-based daycare by 11 per cent while preserving higher subsidies for families with multiple children in care. In total, these changes benefit more than a million families, including 265,000 families in regional Australia.

The Australian Labor government's commitment to the sector extends beyond affordability. We recognise the quality of early childhood education is intrinsically linked to the wellbeing of those who provide it. Early learning educators and teachers play a vital role both in the lives of our youngest Australians and in enabling millions of Australians, mostly women, to balance work and family life.

After just two years of Labor government, the early childhood education and care sector has grown by more than 30,000 workers. This is a direct result of our efforts to collaborate with the sector to develop practical solutions for staff retention and strengthen recruitment and training. The Australian Labor government has provided more university places for early childhood education teachers. We've introduced fee-free TAFE and supported pay increases totalling 14.85 per cent in just two years.

Just this month, the Australian Labor government delivered an historic achievement, a 15 per cent wage increase for early childhood workers, phased in over two years, starting in December this year. This increase, the largest ever for these essential workers, will significantly improve the livelihoods of our educators. For example, a typical educator will see a rise of at least $103 a week, increasing to $155 by December 2025. Early childhood teachers will see their pay increase by $166 a week, reaching $249 by the end of the two-year period. This will improve retention and recruitment and will better recognise the vital work early educators do. It represents a $3.56 billion commitment to our educators, with conditions ensuring funds are passed directly to workers through increased wages and with a limit of 4.4 per cent being put on providers, in terms of fee increases. That's important.

The Liberals dismiss this significant wage increase as a mere few dollars a week. These are the same people who said two years ago that a $1 rise in the minimum wage would wreck the economy. The fact is that, no matter what argument they mount, the Liberals always oppose pay rises for Australian workers. While I'm on the topic of the Liberals, it's got to be said that Liberal Senator Gerard Rennick has made claims that child care will 'destroy the family unit' and that it brainwashes children early with the 'woke mind virus'. I'm just absolutely appalled by these comments. I'm even more appalled by the fact that the opposition leader is standing by that senator with that. We knew that under the opposition leader, Mr Dutton, there would be a shift to the right. I don't think we anticipated the shift to the weird.

Before I go, I'd like to thank the United Workers Union in Tasmania, led by Amy Brumby and lead organiser Jo Murphy, for the incredible work they've been doing in representing early childhood care workers and fighting for fairer conditions for them. This wouldn't have happened without the incredible work they have done.

11:09 am

Photo of Allegra SpenderAllegra Spender (Wentworth, Independent) Share this | | Hansard source

The first years of a child's life set them up for success. By the age of five, a child's brain is almost fully developed, with vision, hearing, vocabulary, personality, social skills and cognitive function all growing exponentially during the early years. Studies show that children who attend quality early-childhood education during these years are twice as likely to reach their developmental targets once at school. Early-childhood education is a critical factor for our future productivity and equality of opportunities for all. But it is also critical for women and economic empowerment, because, despite the progress we've made, the care role continues to fall to women, with 35 per cent of women citing caring for children as a reason for not being in the workforce or for not taking on more hours compared with only 7.5 per cent of men. This plays out through lower financial outcomes, including lower superannuation, and greater dependence on male partners. Ensuring access to childcare sounds like a no-brainer, and while some parents do prefer to care for their children themselves during these precious early years, the reality for many is that it's not a matter of choice.

There are real challenges across Australia and on the ground for families trying to access quality and affordable early-childhood education, including in my community of Wentworth. In Paddington, just a few weeks ago, I spoke with several young families who told me that mothers were thinking of leaving the workforce or not going back as fast as they would like to because of childcare costs. Some were even contemplating not having a second child. Many families in my electorate of Wentworth pay up to $200 a day for child care, which, for a family with two children, costs about $60,000 a year even for part-time care. Waiting lists can be several years along, even if you enrol your kids before they're born, and you're not even guaranteed a place before their first birthday. Subsidies are available, but they taper out, so it's many educated women with strong professional careers who are making those decisions not to engage in the workforce as much as they would like to. That is a problem for everyone, because Australia has, as the member for Goldstein mentioned, some of the highest-cost early-childhood education in the OECD, with childcare costs being a critical cost-of-living issue in this country.

But, speaking to educators, it's no wonder it's so hard to find affordable child care. Working conditions can be tough, the days are long, and it's hard to retain good quality staff despite the demand, because childcare workers remain some of the lowest-paid workers in Australia, with an average salary of just over $60,000. It's not just the cost. Childcare workers get into the profession because they love dealing with children. But the current regulatory settings mean that I constantly hear from childcare centres in my electorate that the box-ticking in the paperwork is taking our childcare workers further and further away from the work that they do with the kids and more into the paperwork. That is not something they want nor what is best for the quality of care for our kids.

These are systemic problems that can't be solved overnight. I want to acknowledge the significant progress that has been made during this term of parliament and which myself and others really pushed for. Workers' childcare costs were reduced for about 1.2 million families last year through the increase in the child subsidy rate. This is an area I strongly supported. Childcare workers are soon going to receive a welcome and long-overdue 15 per cent pay rise—again, something I strongly support and that is highly deserved. These are positive steps forward, and it's no coincidence they've come at a time when there are record numbers of women in parliament, although notably not on all benches in the House.

We are being tentative in an area where the economic case, the social case, the case for opportunity and the case for women's empowerment is so clear. My country and my community want us to be a country where every Australian family can access early education and care that is affordable, and that's what this motion today is all about. I urge the government, who have said good words about universality and affordability of child care, to set out a timeline and a pathway to achieving this goal. It will reduce the financial burden on families, building on the experiences of Quebec and places where the cost of this sort of policy has been offset by the increase in women's tax payments. That ensures that our early educators are properly paid for the amazing work they do and reduces the burden of red tape and bureaucracy, which actually drives some really good people out of early-childhood education and care, because that's not what they got in there for; they got in there for the kids. It is time to take real action in this parliament.

11:14 am

Photo of Tracey RobertsTracey Roberts (Pearce, Australian Labor Party) Share this | | Hansard source

I rise today to reaffirm the Albanese Labor government's deep commitment to early childhood education and care. We understand how transformative early education can be, not just for our children but for families across the country. It forms the foundation for future success and strengthens the social and economic fabric of our society. Our goal is simple: to build a universal early childhood education and care system that is accessible to all families, regardless of your circumstances or background. Every child deserves the best start in life, and every family should have access to affordable, high-quality early education.

We know that children who experience disadvantage and vulnerability are those who stand to benefit the most from early childhood education, and they are often the least likely to attend. This inequity is something we must work hard to change. Early learning helps close developmental gaps that can appear even before a child starts school. For children from disadvantaged backgrounds, early childhood education and care offers a crucial opportunity to build skills, confidence and a love of learning that will stay with them for life.

The cheaper childcare reforms are making a real difference for over a million families, easing the financial burden while ensuring children receive the education they need during these critical early years. These reforms are not just about improving access to care; they are about investing in our children's futures. But it's not only the children who benefit. Early childhood education and care plays a pivotal role in supporting parents, especially mothers, by enabling them to maintain a connection to the labour force when their children are young. When affordable and quality care is available, it empowers women to return to work, continue their careers and contribute to the economy. The benefits are twofold: families gain financial stability, and our economy benefits from increased workforce participation and productivity.

We also recognise the vital work being done by early learning educators and teachers. Every day, parents trust early educators with the most important people in their world, and, every day, Australians ask early educators to do one of the most important jobs imaginable—shaping the future of our children. That is why we are making sure these educators are fairly paid. The Albanese Labor government will fund a 15 per cent wage increase for early childhood education and care workers. This significant wage increase is a critical next step in our ongoing reforms to the sector, building on the success of our cheaper childcare changes.

Importantly, this wage increase will be tied to a commitment from childcare centres to limit fee increases. We want to ensure that workers are fairly paid without the costs being passed on to families. This commitment will help retain our existing early childhood educators, who are predominantly women, and attract new employees into this vital sector. This is better for parents, better for educators and good for Australian businesses. By improving access to quality early childhood education and care, we can also boost productivity and workforce participation, both in the short and long term. This benefit doesn't just extend to early childhood centres. The wage increase will also apply to workers in outside-school-hours care services, creating significant advantages for the parents of school-age children. This increase will be phased in over two years, beginning with a 10 per cent rise from December 2024, followed by further five per cent increase from December 2025. This means that a typical early childhood educator paid at the award rate will receive a pay rise of at least $103 per week, growing to at least $155 per week by December 2025.

Early childhood education and care workers are some of the most important workers in the country, and they deserve to be paid fairly. Our $3.6 billion investment recognises the vital role that early childhood education and care workers play in preparing our children for school and for life. This is a win for workers, a win for families and will help ease cost-of-living pressure. Since coming to government, we have seen the number of early childhood education and care workers grow by more than 30,000, but we need more. In my community of Pearce, there are eight babies born a day to local families. The Albanese Labor government is committed to building a skilled, sustainable workforce that will help us achieve a truly universal early education system for all Australians. The Albanese Labor government's cheaper childcare initiative ensures that early education and care will remain available and affordable for families right across the country whilst laying the foundation for our nation's future economic successes. I thank the member for Goldstein for bringing this motion to the parliament.

Photo of Bridget ArcherBridget Archer (Bass, Liberal Party) Share this | | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.