Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

Since I've been elected, one of the greatest joys in this job has been to visit early childhood education centres and meet with the hardworking educators and the bright young residents in my community who benefit so much from the time they get to spend with educators. I hear from families all the time about what a difference our policies in the early childhood education and care space are making to their lives and how they are improving the capacity for workforce participation, which I think we all know benefits women most. I'm also really proud to be part of a government that has recognised the importance of addressing the gender pay gap when it comes to feminised industries. Since we were elected, our government has taken a number of measures to do this, and I'm pleased that the pay gap is the lowest it's ever been; although, of course, there is an extraordinary amount of work we still need to do.

This piece of legislation, the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024, really goes to the heart of making sure that there is, as the title of this bill would suggest, wage justice for workers in the early childhood education and care sector, a highly feminised industry. I've visited many early childhood education and care centres in my electorate, including a recent visit to the Goodstart centre in Mount Waverley with the Prime Minister, Anthony Albanese. We received a wonderful welcome, a very warm sense of hospitality and a beautiful painting created by the children, which I know now sits in the Prime Minister's office. The reason I mention this is that it really underscores how important it is to make sure that we offer the very best possible education and care and the very best possible wages in this sector. The fact that the Prime Minister has engaged so deeply in this area I think demonstrates our very sincere commitment to improvements in the sector.

This bill establishes a special account to fund grants to approved early childhood education and care providers to support a wage increase of 15 per cent for eligible workers over two years and limit increases to fees charged by providers. So this is really a win-win situation. We are going to make sure that early childhood educators are paid more, with an increase of 15 per cent to wages, and we're also going to limit the increases to fees that are charged by providers. I know this will be very welcome for households right across my electorate of Chisholm and indeed right across Australia. This bill builds on our government's support for the early childhood education and care sector and our support for Australian families more broadly, including the cheaper child care measures which we've already implemented, which have made ECEC cheaper for more than a million families.

We know that providers have been delaying expansion plans, they've been closing rooms and they've been limiting enrolments, unfortunately, because it's been really difficult to find staff. We know that one of the reasons for this has been that the wages have not been a fair remuneration for the kind of work that is being undertaken in centres right across the country. Fair wages—for those who, I hope we can all agree, are some of the most important workers in the country—are critical to reversing the attrition we've seen and for growing the sector workforce. This is a crucial step in charting the course to universal early childhood education and care.

This bill delivers on the joint announcement made on 8 August to deliver a wage increase to address ECEC workforce shortages, improve service quality, support the affordability of early childhood education and care for families, ensure the sustainability of the sector and encourage good-faith bargaining and the making of enterprise agreements in the sector.

This bill provides the legal framework for the establishment and operation of a special account which will be used to administer the Early Childhood Education and Care Worker Retention Payment grant. This grant program will deliver targeted financial support to ECEC providers, enabling them to offer wage increases to their eligible workers. The creation of this special account aligns with our government's commitment to supporting the ECEC workforce.

This bill also establishes the terms and conditions of the ECEC worker retention payment grant, including a limit on fee increases charged by the provider. The grant guidelines will set the limit at 4.4 per cent in the year from 8 August 2024, and the ABS will develop a new ECEC cost index to guide limits on increases in future years. This is an important affordability condition that will ensure we keep downward pressure on fees for families. This is just another example of our government's focus on relieving the cost-of-living pressures that households are experiencing, and I hope that people in this place can support this initiative.

The wage justice special account will be established from the date that the act comes into effect, with funds to be drawn from 1 July 2025. The account will be credited over two years, based on the estimated annual expenditure profile for the ECEC Worker Retention Payment. The special account will be time limited and will self-repeal on 30 June 2028. To enable the first payments to be made in December of this year, grant agreements will initially be supported by using a special appropriation which already exists under family assistance legislation. Transitional provisions in the bill will ensure that grant agreements are subsequently deemed to have effect under the bill, with funding supported by the new special account from 1 July next year.

This is a really important piece of legislation. It recognises that decent wages—fair wages—are critical to reversing attrition and growing the workforce. The lack of fair wages has been impacting the availability of early childhood education and care for families and has been limiting opportunities for people who are passionate about working in this industry but require higher wages to support their own families. It is a significant development that early childhood educators are going to get a 15 per cent pay rise. In the time I've been in this parliament, and before, I've met with many early childhood educators and carers. I know just how passionate they are about the work that they do. But I also know about the level of burnout that our workers in centres are experiencing as a result of attrition and about the concern that they have for the children and families they care about when they aren't able to provide the level of service they'd like to.

I want to very sincerely thank and acknowledge the many, many educators and families who have been advocating for change in this area, to commend them for their steely focus on this issue and for elevating it to ensure that it has received the national attention that it deserves. We all know that early education gives children their very best start in life and gives families the support and confidence they need to return to their workforce—because they know that their children are being educated by well-paid, highly skilled professionals.

The pay rises we're seeing here will set a new standard in early childhood education and care, and there's no going back. This is a really important, big step forward. I've spoken to early educators who say that this pay rise is transformative. This has been a missing piece, as far as they're concerned, in the work that they do in providing children and families with the high-quality early education and care they deserve. As I said, there's been a lot of attrition and, as a result, a lot of staff burnout among those who remain. This pay rise will mean that around 200,000 educators who have been struggling to meet the cost of barest daily essentials will now have the opportunity for stability and security in their lives. I think we could all agree that's what they deserve.

It's clear that this pay rise is part of a broader approach that our government has taken to lift the standard and improve accessibility to early childhood education and care. As I mentioned earlier, this goes to the heart of gender equality in this country. Not only are we lifting the wages of a highly feminised workforce but, through doing so, we're enabling carers, who are largely women, to enter the workforce, should they choose to do so, with confidence. Our government made a similar decision in relation to aged-care, again a highly feminised industry. It delivered a pay rise there that recognised and respected the highly skilled and very important work that aged-care workers do.

I feel really proud to stand here and speak on this issue as part of a government that recognises the importance of this sector, but I wouldn't be able to do so were it not for the many people who've spoken to me about this over the years and who've been fierce in their determination to see this change. Every time I enter an early education centre, the love that educators have for their work is so apparent, and the children are clearly thriving in the centres in my electorate. I've spoken to families who say that this is a key issue for them, ensuring they have confidence to go back to work and ensuring that their children are educated from their earliest years. We know that the first five years are incredibly important in a child's life. It is so significant that our government is recognising that importance by ensuring the sector have certainty and, through pay rises and other changes, the respect that they deserve.

I look forward to visiting, once I return to my electorate, more centres. I know I will be opening an early childhood education centre very soon. There's a lot of growth in this sector in my electorate. But for the moment I'm very pleased to stand here as part of a government that is delivering wage justice for early childhood education and care workers—wage justice that is much deserved.

Zoe Daniel (Goldstein, Independent) Share this | Link to this | Hansard source

The word 'care' is undervalued, and, by extension, women's work is undervalued, because historically women have been the caregivers and men the breadwinners, and social norms are hard to shift. But the good news is that this is changing. The word 'care' is finally getting the attention and respect it deserves. Australia's new Governor-General, Sam Mostyn, is leading the way. At her swearing-in she said:

If I can capture in a few words my aspirations for our country, I believe that these testing times call for an unstinting focus on kindness, on care and on respect.

…   …   …

Care is the gentle thought and the outstretched hand that Australians have always been ready to share when great challenges present themselves. Care is the quieter, better part of ourselves. And it is that sense of care that Simeon and I will seek to depict and amplify as we take on this role.

The binary system of women as caregivers and men as breadwinners, and the value we give each, is reflected in the type of work women and men do. The Australian labour market is highly gender segregated by industry and occupation, a pattern that has persisted for decades. According to UNSW's Social Policy Research Centre, Australia's most feminised jobs are those of midwives, early childhood teachers, dental assistants, child carers, beauty therapists and vet nurses. In the early childhood education and care sector 92 per cent of workers are women, and this is reflected in my electorate of Goldstein. Of the 1,500 early childhood educators in Goldstein, 95 per cent are women. Men are more likely to work as childcare centre managers than in any other type of ECEC role. The segregation of women and men into different occupations and industries is a key driver of pay inequity. Female concentrated industries and occupations tend to be on the lower end of the pay spectrum, while many male concentrated jobs sit at the upper end. This inequality accumulates across a woman's life course.

But the undervaluing of women's work isn't just about money. The care sector itself is undervalued, because it's an area of the economy that we tend not to think of as being productive or about investment. This is also changing—and it must, for the sake of the country. Economists are at the forefront of this change. They've come up with the term 'care economy'. This consists of all those services that provide care in one way or another to people of various ages and abilities. It includes aged care, disability services, and early childhood education and care. It's not well understood, but the care economy is the single largest employer in Australia: more than 1.8 million people, 80 per cent of whom are women, currently work in care economy jobs. It's also our fastest-growing industry, as measured by job growth, by a long stretch. This growth has far eclipsed the growth in traditional industries, such as manufacturing. And it offers an unprecedented opportunity to innovate at scale while generating meaningful jobs and fulfilling careers.

La Trobe University in Melbourne is seizing on this opportunity. Its vision is to transform the Australian care economy from a fragmented welfare and consumption industry to a global leader driving economic growth and productivity. I support La Trobe uni's mission 100 per cent, and I've spoke to the industry minister about the importance of this transformation. It requires a shedding of outdated views about the care sector and a willingness to embrace a new way of thinking.

The Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024 represents a shift in thinking—a shift towards respect. A valued and respected workforce underpins everything. This is why I was among those who fought tooth and nail for a pay increase for early childhood educators. In a sector that nurtures children, the educators have been left un-nurtured for years. These mostly female workers have been victims of a discriminatory system that has devalued women's work and the care economy. As a result, they've left the sector in their droves to seek higher wages elsewhere—and who could blame them?

This bill provides a legal framework for the establishment and operation of a special account which will be used to administer the pay rise. The 15 per cent pay increase will support women and families with cost-of-living pressures and help attract and retain workers in the early childhood education sector. It's also a critical step in achieving equal pay for workers in occupations that historically have been undervalued on the basis of gender. Importantly, the bill also limits increases to fees charged by providers.

Support for the early childhood workforce is a win for gender equality in the female dominated early childhood sector, and it's a critical step towards universal early childhood education and care in Australia. Now is the time to start shaping the system that we want for our children. Every child should have access to a minimum of three days of free or low-cost early childhood education in a week. It 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 by reducing out-of-pocket expenses; and it would get women back in the workforce. I've said it many times in this place; affordable and accessible child care is good for children, families, women and the economy. This policy ticks all the boxes.

I promised the women of Goldstein I would fight for their economic security, especially for those who are not in the room, and I will continue to do so. I commend this bill to the House.

Joanne Ryan (Lalor, Australian Labor Party) Share this | Link to this | Hansard source

Quality early childhood education and care is a hallmark of a Labor government. The previous Labor government took to this place legislation to ensure quality early education and care, setting milestones for early education and setting targets for the training of the professionals who were going to work in the sector. When I came to this place, of course, we were in opposition, and for nine long years I watched as the dream of quality childhood education and care went down the gurgler, while those now opposite twiddled their thumbs and watched it do so. The costs were great, but the costs were greatest to families in electorates like mine, where the majority are young families with children who need to access this and where the majority are double-income families trying to make incomes meet, with both parents working.

From opposition we watched those who worked in the sector during the pandemic, when they were hailed as heroes. They were part of the essential workforce that kept us safe. It was in those dark moments, when early educators were being asked to show up to work to look after the children of essential workers, when everybody wanted to be out first to thank them for their service, that very serious conversations began again inside the Labor Party about the care economy—about its value, about the investment that was going to be required, about the feminised workforces, again, and about how far behind we were in the gender pay gap.

I spent my life working in a feminised workforce called education. I spent my life working in schools. I spent my life working alongside, predominantly, other women—women who often felt that their work was not valued. So I completely understand how those working in the early education and care sector (a) felt during the pandemic but (b) feel generally.

This legislation, the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024, is from the conversations that we had in the dark days of the pandemic about gender equity and how we could create equity in the care economy. It is from the conversations we had about the power of change in this space to drive economic change and how making early education and care affordable for families could mean women, predominantly, working two extra days a week and what that would do in terms of boosting our productivity. So we know that what we're putting before the parliament today is good for the economy and it's good for families, but, most importantly, it's good for the women who work in this sector. It is part of this government's driving agenda, which now sees the gender pay gap at the lowest it's ever been, around 11 per cent. There's still work to be done, but this piece is a seminal piece. The early education and care sector is the backbone of our nation. The people who work in it should be valued by our nation. Parents across our country rely on their passion and commitment to create a strong foundation for our smallest Australians.

I fully support the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024 because I've seen firsthand the contributions they have made, and continue to make, to our society. I saw that as a mother when I dropped my children, when they were toddlers, off to early education so that I could be part of our economy and our education system and make my contribution to this society. This legislation will help address significant workforce shortages that we're also seeing, because it supports the delivery of a much-needed wage increase of 15 per cent for eligible workers across two years. It's a wage increase that is long overdue for some of our hardest workers in this heavily feminised workforce, a wage increase that was needed but ignored by those opposite for such a long time. In fact, it was more than ignored. They openly said it would be a bad thing for the Australian economy if women were paid more to do their work. This bill is a step forward for the sector, for our nation and for our nation's women. It sends a strong message that without their work, their support and their care our nation would lack the contributions of so many.

Across my electorate, one of the youngest electorates in the country and one of the fastest-growing regions in the country, I've spent a fair bit of time recently visiting our local childcare centres. I've enjoyed friendly conversations with staff at Goodstart Early Learning Tarneit. I've cuddled little ones before nap time at Goodstart Werribee. I've talked about the demand for quality early childhood educators at Child's Play Early Learning Centre in Wyndham Vale. I've met children who could already spell out their names at Goodstart Heaths Road. I've spoken to staff about their incentives to stay in the sector at Goodstart in Morris Road. I've witnessed incredible staff diversity at Goodstart Deloraine Drive and across these early education facilities in my electorate. I've spoken to students on rounds in these centres across the last few weeks. The one common factor I found amongst all of these centres and amongst all of these children was the quality staff and how much they cared, not just in a nurturing way but about the development of the children they cared for. They cared about their job and they cared about the children they looked after, their future and their development.

I've heard stories about the demand for experienced staff in centres and the pressure workers are under. We want to ensure that our workers are adequately rewarded for the tireless work they do and the contributions they make. We want to say more than thanks. We want to say, 'You are valued.' We want to say: 'We see your work. We value your work. Our country can't run without your work.' Decent wages are not just critical to reversing attrition and growing the workforce; they demonstrate that this Labor government cares, like the educators do. Workers simply don't stay where they aren't valued. We've seen delays to expansion plans, the closure of rooms and limitations on enrolments because centres are struggling to retain quality staff. The struggle this sector is facing needs to end and this is part of the solution to that.

I had the pleasure of visiting the Aspire childcare centre in Manor Lakes for Early Learning Matters Week. We read a story together, had a lovely morning tea and created some beautiful artwork to commemorate the week. The meaning behind Early Learning Matters Week could not have been clearer. Having spent time in secondary schools as both a teacher and a principal, I know that childcare centres are fundamental to not only a child's development in their early years but how that shapes their future years. We need to do the right thing by Australia's future generations by enhancing the early education workforce so they can put their best foot forward. This piece of legislation is part of that. It will give a 15 per cent pay rise across two years and cap what the centres can increase their charges by at 4.4 per cent. The significance of the Albanese Labor government's changes to the sector is that not only will they benefit the educators and the workforce but they will allow parents to have confidence in their children's future and wellbeing. I remember the reality of relying on those same educators to provide my own children with the care and support needed. I know how vital childcare services are to all Australian families.

A factor of this legislation that we must not overlook is that it will also provide cost-of-living relief for the parents and guardians of our nation's youngest. It establishes terms and conditions which are inclusive of a limitation on the fee increase. As I said, centres will be prohibited from increasing fees by a set amount, with that amount being set at 4.4 per cent until August 2025. It will put downward pressure on fees and help to make child care more affordable for the families in my electorate. It is a measure I know many in my community appreciate, because they have already said so in communications to me. Families should not have to choose between going back to work and ensuring their children are well looked after, and this legislation is a part of ensuring they don't.

As is common in the care sector, the early childhood education and care workforce is over 90 per cent women. For too long, previous governments have undervalued the work of this sector, despite this being a service that even those opposite have had to rely on. The announcement of this pay rise is grounds for celebration, and it was certainly being celebrated in the childcare centres that I visited. It is recognition that this sector is more than just—as the outrageous claim goes—a child-minding service.

My good friend Jo Briskey has been an incredible asset to the early education sector through her work in the union. I recently met with her to chat about this win for childcare workers. Jo has been a strong advocate for the sector for as long as I can remember. The legislation is a result of the impacts and importance of her work and the work of many others in being available and reliable and in bringing people forward to have the very important conversations with members of the government to ensure that we all support this action. Through organisations such as The Parenthood and the United Workers Union, Jo has made an impact, and I'm sure, at home, she's very proud that this legislation is being debated in the House today. I wish her well as the Labor Party candidate for the seat of Maribyrnong in the upcoming election.

The wage justice bill is good for workers, good for parents and, most importantly, good for children. It charts a course to universal access to early childhood education and care. It puts children first and ensures they are receiving the highest quality care, because they are our future. This legislation is part of a better future for all Australians.

Kylea Tink (North Sydney, Independent) Share this | Link to this | Hansard source

As someone who has worked for most of their adult life and has also had a family, I know exactly how essential access to good-quality early childhood education and care options is. It wasn't easy when my kids were little. Using a combination of great care facilities, private services and a supportive partner and family, we were able to cobble together a system that worked for us. This was important as it not only allowed me to continue to pursue my profession but also ensured that I always knew my kids were in safe hands, benefitting from stimulating and good-quality care and education. In this context I welcome the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024, as it introduces a 15 per cent wage increase over two years, tied to the condition that providers limit their fee increases.

Coming to parliament in 2022 as North Sydney's Independent MP, I have to confess I was frustrated that one of the government's first priorities at that time was moving on its industrial relations reform. In doing so, they consistently referenced the need for wage increases in the early childhood education and care sector to promote the multi-employer bargaining provisions that they were desperate to introduce. At the time, I spoke to the minister and advocated for an immediate review of the award system covering these workers, to ensure real-time wage increases were prioritised over widespread industrial relations reform.

Indeed, the peak body for the sector, the Australian Childcare Alliance, also stated at the time that they were concerned the multi-employer bargaining provisions of the new legislation could result in the imposition of higher wages across the whole sector, without government planning or financial support. They warned that wage rises foisted upon small operators could force them out of business and reduce access to high-quality services for families. Instead, they called for a coordinated national wage increase with a transparent mechanism to ensure the wage supplement was passed directly on to the workforce.

So it remains disappointing to me and many in North Sydney that the wage increases were not introduced by this government at that time. We have waited too long for this reform. When your pay is low and your cost of living is high, every month matters. It comes as an immense relief then for many that the government is finally acting on calls for better pay conditions for early childhood education and care workers. Undervaluing work and underpayment of wages are not unique to this industry and pervade every part of the care economy, from aged care to social services. Workers are having to deal with low wages and challenging work conditions, while the cost of living has continued to climb, but, despite this, the care economy work is fundamental.

In the early childhood education and care sector in 2021, 93 per cent of workers identified as female. The predominance of women in this and other care workforces coupled with this historic underpayment means this legislation is not just significant for the industry but for the economic empowerment of women overall. According to the 2022 report from Chief Executive Women, workers in female-dominated injuries with a bachelor degree or above earn 30 per cent less per hour than workers in male-dominated industries. For workers in these industries with a certificate III or IV, the earning gap increases to 36 per cent.

Currently, the more than 200,000 early childhood educators in Australia are among the country's lowest-paid workers. Not only do wages in the sector pale in comparison to other industries but they're well below the wages of other educators. According to the Productivity Commission, median wages for early childhood education and care workers are about 20 per cent lower than those of primary school teachers, and working conditions can be poorer than in other education sectors, with fewer leave days and greater workplace pressures. It's little wonder that more than half of the graduates of the early childhood sector seek employment in primary schools rather than the childhood education and care industry where they are so sorely needed. I've experienced it personally in the last couple of yours, as my niece has pursued a career in early childhood education to only now be in a position where she sees her only viable professional pathway to be in the school system. But it doesn't have to be this way.

In the Netherlands, there is no gap between pre-primary and primary school teacher earnings. As Australians, we need to recognise that the work our early education and care workers do is just as valuable as the work of primary and secondary teachers, as the research is clear: the early years are incredibly important for learning and for the development for children.

Additionally, workforce retention in the early childhood education and care industry is an increasing problem that, if left unaddressed, will risk facility closures and a reduction in accessible childcare options that would significantly impact families right across the nation. The severity of the problem was recently highlighted by a snap poll by the United Workers Union, which found more than 60 per cent of childhood education and care workers surveyed were planning to leave the sector within the next three years. High staff turnover and persistent vacancies will lead to a decline in the quality of education and care provided to children. This decline in quality will not only affect the immediate experience of young learners but will have ongoing effects on their development outcomes and future educational success. Indeed, many are arguing that at a time when we should be fighting for universal access for all children to early childhood education, our economic structure is such the opportunities are becoming fewer and fewer.

To be specific about what the bill before us offers, it will introduce a special account from which to pay a 15 per cent wage increase for early childhood education and care workers over two years, tied to a condition that providers limit fee increases. The first period of this bill's implementation would limit fee increases to less than 4.4 per cent in the year from 8 August 2024 to 7 August 2025. To be eligible, providers will need to increase workers' wages by 10 per cent above the current award in the first year of payment and 15 per cent above the current award in the second year. This worker retention payment aims to attract and retain workers in the sector without passing costs along to families via higher fees. The 4.4 per cent fee cap is a key measure to ensure costs are not passed onto families through increased fees, yet, while it makes sense to tie the wage increases to the fee cap to protect families from excessive price hikes, it's unknown how it will be enforced.

When you live in an electorate like mine, where families are paying over $200 a day currently to access early-childhood education and care services, this is a very real issue. I've heard from people in North Sydney who are concerned that the fees will rise regardless of this measure. To effectively limit fee increases, fees will need to be properly monitored, and early-childhood education and care providers will need to be held accountable for meeting these conditions. Interestingly, the legislation will affect early-childhood education and care providers differently depending on where they're based. Different regulations in every state and territory making wage increases contingent on a blanket fee cap of 4.4 per cent will have varying impacts. For example, in my home state of New South Wales, we have one of the highest educator-to-child ratios of any state or territory. But we will still be held to the same fee cap as other states with lower ratio requirements.

We also need to consider the impact this bill will have on providers, particularly the many small and family-owned businesses that may struggle to adjust to the changes required of them. I have heard from owners of small childcare centres in North Sydney who are concerned about the administration of this bill. They absolutely welcome the pay rise for workers, but they've expressed two key challenges that they will face due to the legislation. The first is that the impact of fee caps, they believe, will be felt more by small businesses than by big providers, as the owners of small childcare centres often operate on thin margins and higher operating expenses. In this context, imposing limits on fees could have a disproportionate impact on them. Secondly, they're concerned about the added administrative burden the legislation will place on them as privately owned centres, as they already have, in their words, 'huge amounts' of administrative work to deal with under existing laws and government programs. Arguably, large early-childhood education and care providers have greater capacity to deal with increased administration, while smaller providers, who comprise up to 79 per cent of the sector, may struggle to keep up with increased administrative burden.

Ultimately, the message I've heard from people in North Sydney is clear: we must improve wages for early-childhood education and care workers whilst also ensuring smaller operators aren't disproportionately impacted. We want a triple win. We want a win for industry, workers, and parents, carers and children who use these essential services. As a working parent, I know how difficult it is to have a career while raising children—educating them, caring for them and doing all this while working, all with a clear conscience. Parents like me rely on the incredible work of the 221,000 Australians who put their hearts and souls into childhood education and care. The work is just as challenging as it is rewarding. Until now, these workers have been underpaid and undervalued, despite their work being essential to more than a million families. As we continue these conversations around reforms in the early-childhood education and care space, I will be hosting the North Sydney community early childhood education and care deliberative democracy forum later this month. The event will bring together subject matter experts and around 30 to 40 randomly selected residents of the electorate to discuss the affordability and accessibility of early-childhood education and care services, with the goal being to arrive at a consensus on a policy approach that they would like to see the federal government pursue to ensure these services are affordable and accessible to everyone. It will be democracy in action in its truest terms. I look forward to hearing what my community has to say as a result of this event.

In closing, there is so much more to be done to ensure early-childhood education and care is valued, affordable, accessible and of a high quality for all Australians. Paying workers what they deserve is an essential first step in this journey. I welcome this bill, and I very much look forward to supporting it as it moves through the House.

Cassandra Fernando (Holt, Australian Labor Party) Share this | Link to this | Hansard source

Since we came into government, the number of early childhood education and care workers has grown by more than 30,000 people. This growth reflects Labor's drive to improve the sector. From Hampton Park to Lynbrook and from Narre Warren South to Cranbourne and Clyde, early childhood educators are some of the most important workers in our community.

I have visited many of the childcare centres in my electorate, including Aspire Early Learning in Cranbourne West, Clyde North and Bella Estate; Merinda Park Kindergarten; Pebble Patch in Cranbourne West; Goodstart in Hampton Park; Kids House Early Learning in Clyde North; Cranbourne Drive early learning; and YMCA Early Learning in Cranbourne North. At each of these centres I met dedicated professionals who take on the enormous responsibility of caring for and educating our children while we work and manage our lives. To them I say: I have met you, I have heard you and I know that your work is irreplaceable. I want to say a heartfelt thank you as you shape the next generation and ensure that our children have the best possible start in life. Holt is one of the youngest electorates in the country, with one in four residents being under the age of 14. Early childhood educators play a crucial role in our community. To those educators I say: we place a huge amount of trust in you, relying on you to care for our children and support their development and wellbeing.

But we know that simply increasing the workforce isn't enough. We must also ensure that these educators are properly supported and fairly paid. Despite the importance of their work, many early childhood educators face low wages and heavy workloads. Decent wages are crucial to retaining staff and attracting the most talented and passionate people to the sector.

This is why I'm proud to stand here today, in the debate on the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024, to speak to the Albanese Labor government's commitment to funding a 15 per cent pay rise for 200,000 early childhood educators across the country. This commitment recognises the vital contributions these workers make to our community. This is fundamental Labor policy—a policy that comes from a party that puts Australian workers and families first and that recognises their essential contribution to society. This wage increase acknowledges that these workers—predominantly women—deserve to be paid fairly for the important role they play in supporting our families and communities. It is about respect and recognition for the hard work and dedication these educators show every single day.

This increase will also provide a much-needed boost to wages, with the average early childhood educator earning the award rate seeing an increase of at least $103 per week by December 2024 and at least $155 per week by December 2025. This is an additional $7,800 a year for these workers. This wage rise is tied to a commitment from childcare centres to limit fee increases, ensuring that workers are paid fully without passing the cost on to families. This builds on Labor's previous efforts to make child care more affordable for families. Since we came to government, the number of early childhood workers has grown by more than 30,000, but we need more.

Last year we implemented the cheaper childcare reforms, which significantly reduced the cost of child care for 96 per cent of families. These changes mean that a family on an income of $120,000 today is paying about $2,000 less in childcare fees than they would otherwise have had to. This policy was designed to allow parents—especially women—to re-enter the workforce without the burden of high childcare costs. It has been life-changing for families in Holt, enabling them to earn more, invest in their families' future and contribute to our local economy. This is the kind of support we aim to provide to all families in our community.

The Albanese Labor government understands that, when we invest in early childhood education, we are investing in our future. Our commitment to fairer wages for early childhood educators is part of a broader commitment to ensure every Australian child has the best start in life. By improving access to quality early childhood education, we lay a strong foundation for children's development and learning. Research shows that these early years are crucial for cognitive, social and emotional growth. Children who receive high-quality education during this time are more likely to succeed academically and thrive later on in life.

Accessible early childhood education ensures that all children, regardless of their background, can benefit from nurturing environments that foster curiosity, creativity and critical thinking. Moreover, it empowers parents to pursue their careers with the confidence that their children are in safe and supportive settings. This in turn leads to stronger families and a more resilient community. Investing in early childhood education is not just an investment in individual children; it's an investment in the future of our society.

Paid parental leave was introduced by the Gillard Labor government in 2011. It is a policy that highlights the positive outcomes when women are a part of the decision-making process. This policy has provided hundreds of thousands of mothers with the financial support to take time off work and focus on what truly matters: spending those precious first weeks with their newborn child. It has lifted the financial burden that many new parents face, allowing them to bond with their child without the stress of returning to work too soon. The Albanese Labor government has made significant improvements to paid parental leave. From 1 July, every year we will increase paid parental leave until it reaches 26 weeks because we believe that, when parents have more time with their babies, it strengthens their bond and creates priceless memories that last a lifetime.

My electorate is home to a diverse community of families, and every week I have the privilege of meeting countless parents who have benefited from Labor's reforms. They share stories of how affordable child care and paid parental leave have made a real difference in their lives. These are real stories from real families—families like my brother, Hamish, and his amazing wife, Christine. Last year, they welcomed their beautiful baby boy, my nephew, Xander. Knowing that Hamish and Christine could spend more time with Xander during those first few weeks brought me great comfort as a proud aunty. These changes are crucial for families across Holt, especially as they navigate the challenges of parenthood. They provide much-needed support, allowing families to focus on what truly matters: raising their children and building a future together.

We are focused on ensuring that children get the best education at all stages of their life. From kindergarten to primary school, high school and onto university and TAFE, our education reform agenda doesn't just end at early childhood. The Better and Fairer Schools Agreement will see an additional $16 billion invested in our public schools over the next decade. Public schools are the backbone of our education system, and this funding boost will provide more resources for teachers, better support for students with diverse needs and upgraded facilities that foster learning and growth. This will mean that, for the first time, public schools outside of the ACT will be fully funded. This investment will ensure every student, regardless of where they live or their background, has access to the highest quality education.

The Albanese Labor government is dedicated to supporting families in our communities, through cheaper child care, through extended paid parental leave, through paying new mothers superannuation and through cutting taxes so that every Australian has more money to spend on their family. Only Labor is committed to ensuring that no family is left behind and that every worker is valued for the work they do. We recognise that it is our government's responsibility to create an environment where early childhood educators are recognised, respected and paid fairly for their essential work.

I would like to take a moment to thank the Minister for Education, Jason Clare, and the Minister for Youth, Dr Anne Aly, for their outstanding work on this bill. Their tireless efforts have been instrumental in ensuring that early childhood educators receive the respect, recognition and fair wages they deserve. Minister Clare's leadership in education reform and Minister Aly's unwavering commitment to supporting Australian families have brought us one step closer to a system that values both educators and the children they care for. Their vision and advocacy have made a real difference for countless families across the country, and I am proud to support their work in this vital area.

I urge everyone in this chamber to support this bill and to celebrate the work of our early childhood educators. Together we can build a better future for our children—one where every educator feels valued and every family has access to the quality of care and education they deserve. I commend this bill to the House.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

I think it's very important that when discussing the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024 we put on the record the coalition's record when it comes to child care. We almost doubled child care investment, to $11 billion, in 2022-23 and locked in ongoing funding for preschools and kindergartens. We made the biggest reforms to the early childhood education system in more than 40 years. More than 1.3 million children have access to the childcare subsidy, from around one million families when we first came to office. Under the coalition, 280,000 more children are in early childhood education. And our targeted extra support, introduced in March 2022, made a real difference. Childcare costs came down by 4.6 per cent in the year to June 2022. That is worth repeating: our targeted extra support, introduced in March 2022, led to a 4.6 per cent decrease in childcare costs to June 2022. While doing all that, we saw women's workforce participation reach record highs, at 62.3 per cent in May 2022. That's compared with 58.7 per cent when we came to office.

So, our track record in this area is an excellent one. Not only that, but we were able to carry the childcare sector through the pandemic. As you will remember, the sector faced its darkest hour when the pandemic hit. But we were able to take the sector through that period. Their resilience and their ability to work with the government meant that when we came out of the pandemic they were ready to go. Those in this place today will remember—and I remember it, because I'm pretty sure it was Easter Sunday—when we announced free child care during the pandemic. That approach was able to carry the sector through the pandemic. We of course readjusted after some months and were able to set the sector up to blossom again once the pandemic had ended. Can I once again give my thanks to the sector for what they were able to do throughout the pandemic because we needed a childcare sector, especially, when it came to emergency service workers and others who had to work, to look after their children. The sector stepped up to the plate, and they did it incredibly well.

I have two areas of concern when it comes to this bill. The first is that it does nothing to address childcare deserts. The sad reality is we've seen these childcare deserts grow in just the two-and-a-bit years that the Albanese Labor government has been in office. Sadly, where those childcare deserts have grown most abundantly is in regional and rural Australia. I say this to the government: you need to seriously look at what you can do to make sure that child care is provided right across this nation—that it's provided in my electorate of Wannon. You need to be mapping where we have childcare deserts, and you have to be making sure we get the child care that we need. Not only that; you have to make sure that we can get the workforce that we need. That is one of the problems with this bill: we are not seeing anything which is going to help address that fact. We are not going to see these childcare deserts addressed. That is very, very problematic.

The other thing that we also have issues with is: what is being done in this bill to make sure that out-of-pocket expenses for parents go down? What is it that will lead to those out-of-pocket expenses not continually rising for them? Just to give you a sense of this issue, after the last election, Labor promised cheaper child care. Instead they spent $4.7 billion, which was mostly eaten by inflation, and delivered higher out-of-pocket costs for families. To give you a sense of the higher out-of-pocket costs for families, they went up 8.4 per cent over the last 12 months. You've got a cost-of-living crisis, you've got a cost-of-doing-business crisis, and your out-of-pocket costs for families for child care have gone up by 8.4 per cent even though Labor has spent $4.7 billion.

We all recognise and know how important our early childhood educators are, and all of us want to see them get extra income in their pockets because of the cost-of-living crisis. We know that, and we want that. But what we don't want is for the parents to see more inflation and see their out-of-pocket costs continue to rise. They've gone up 8.4 per cent over the last 12 months. If that continues, it's going to make life harder and harder and harder for those working families.

So I say to the government: there are more things that you need to do. Looking at wages amongst our early childhood educators is important, but you need to have a holistic policy approach, one which won't cause inflation and which will mean that we can get more workers into the workforce and more childcare providers, especially in areas where there are childcare deserts, and that we won't see out-of-pocket costs go up by 8.4 per cent for families. That's the challenge.

It's so often the case with this government that they'll see one aspect that they think needs addressing, but they won't understand that you need a holistic approach to do it properly. And that is my worry with this bill—the lack of a holistic approach.

As I go around the electorate of Wannon and I talk to people, they're deeply concerned about the costs when they go to the supermarket. They're worried about the cost of insurance. They're worried about the cost of housing. They're worried about the cost of rent. They're worried about the cost of driving on the roads, due to the cuts to maintenance for our roads that we've seen from the federal and state government over the last two-and-a-bit years. They're all the things that they worry about, and there is nothing in this bill to ease the concern about out-of-pocket costs for families continuing to rise by 8.4 per cent year on year. If that does happen—8.4 per cent year on year—the compounding aspects of that will really hit families hard.

That's why the government needs to take a holistic approach. If they don't, and inflation continues as it is, then what we are going to see, sadly, is this continuing—and this is the record: since the last election, the cost of health has gone up 10.5 per cent; the cost of education, up 11.2 per cent; the cost of food, up 12.3 per cent; the cost of housing, up 13.1 per cent; the cost of rent, up 16.3 per cent; the cost of financial and insurance, up 17.3 per cent; the cost of gas, up 33.8 per cent; and, of course, as I've mentioned, childcare, up by 8.4 per cent.

We have to remember: Labor have had three budgets now—three budgets—to try and address this. Yet working Australians have seen their living standards collapse under Labor because of these soaring costs. Labor's failure to break the back of inflation means that hardworking families have seen their standard of living decline and decline dramatically. As a matter of fact, it's one of the highest declines, if not the highest decline, in real living standards anywhere in the OECD—anywhere for comparable countries.

That is why this bill really needs to be far, far more holistic in its approach. We know and understand our early childhood educators deserve a pay increase, but we also know that there has to be a way to do that which doesn't lead to inflation going higher or those costs going higher or out-of-pocket costs for parents continuing to rise year on year as they have for the last 12 months by 8.4 per cent.

So my challenge for the minister and for the government is this. What guarantees are you giving that parents won't see out-of-pocket costs continue to rise by 8.4 per cent, or higher, year on year? I remember, when we were in government, those opposite said it was all about out-of-pocket costs for families. Yet now we don't hear much noise at all when it comes to these out-of-pocket costs. Referring to those out-of-pocket costs and making sure that you're saying to Australian families, 'That needs to be a key component of what we are doing,' is critically important.

The other thing that the government needs to focus on is: the childcare deserts. What are you doing to make sure that the sector expands? What are you doing to make sure that the childcare providers have that surety to be able to invest and keep investing and providing that opportunity for families to get access to child care? I can tell you we're not seeing anything in my electorate in that regard. That is one of the many disappointing things that we have seen recently.

You have to remember that our record was 280,000 more children in early childhood education. I would love to see that number continue to grow and grow and grow, especially in rural and regional areas. Wouldn't it be wonderful if we had a government who could point to its record of seeing childcare provision in regional and rural Australia expand into these childcare drought areas? That's where we're seeing the extra numbers: in Warrnambool, in Port Fairy, in Portland, in Hamilton, in Colac, in Ararat, in Winchelsea—right across my electorate. I would love to see a government focused on providing more childcare opportunities for my constituents and doing it in a way which isn't going to see out-of-pocket costs for parents rise year on year by 8.4 per cent. That's the challenge for this government. What about bringing into this chamber a holistic approach to child care which is going to work for everyone?

Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

I'm proud to stand up here and support this bill, the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024. It is a very special bill. It's a bill that will enable early childhood education and care workers, who are some of the most important workers in the country, to be paid fairly and enable a betterment in our economy. They deserve to be paid fairly. Achieving quality outcomes for children relies on a highly skilled workforce made up of well-supported and professionally recognised early childhood education and care sector workers. Decent wages are absolutely critical to reversing attrition and growing this crucial workforce.

Every day around this country, parents trust early educators with the most important people in their world and in fact the most important people in our nation: the next generation of Australians. We ask our early childhood educators to do some of the most important jobs imaginable, and they deserve a pay rise for doing that. That's what this bill delivers. It delivers a 15 per cent pay rise for up to 200,000 childcare workers—a 10 per cent pay rise from December this year and then a further five per cent pay rise from December next year. A typical early childhood educator will receive an additional $103 a week from December 2024, increasing to at least $155 from December 2025. A typical early childhood teacher will receive an additional $166 a week from December 2024, increasing to at least $249 from December 2025. This is important because what happens in early education and care is very important.

It's not babysitting; it's early education. Ninety per cent of our children's brain development occurs in the first five years of life. It's crucial, as all the research that we've seen shows, that the earlier you start educating a child, the better it is for that child. The long-term benefits for their education are huge when you start early. Studies have been done all around the world, especially here in Australia, that show that. No child expert would argue with that point. We hope this pay rise will encourage more people to stay in the industry, more people to come back to the industry and more people to think about becoming an early educator. More educators mean more children and more parents can benefit from the life-changing work that they do.

This bill also sets up the Wage Justice for Early Childhood Education and Care Workers Special Account. This account allows us to deliver a 15 per cent rise over two years through the Early Childhood Education and Care Worker Retention Payment Program. It supports affordability for families by establishing a fee increase cap in the terms and conditions of the worker retention payment grant. This means that providers won't be able to raise their fees in the first year by more than 4.4 per cent. This will put downward pressure on fees, helping to make early education and care more affordable for the families that need it. The wage justice bill also encourages good-faith bargaining and the making of enterprise agreements in the early childhood education and care sector. It'll also help support the steps the government has already taken to make early childhood education cheaper for Australian families—and this is extremely important across the nation.

The Australian Bureau of Statistics, or ABS, census data shows that there were 2,280 childcare workers working in the Adelaide metropolitan area—mostly in my area—in 2021, which compares with 862 in 2011. This is equivalent to an increase of 1,418, or 164.5 per cent. As of July 2024, there were 157 early childhood education and care services within my federal electorate of Adelaide. This includes centre based day care, outside-school-hours care, family day care and preschools. There were 70 centre based day-care services and 50 outside-school-hours services in the electorate that I represent. There were 9,530 families using a childcare service in the Adelaide electorate and receiving the subsidy in 2023.

Like many people in this place, I've had the privilege of visiting many, many childcare centres in my electorate, and I know that the news we are hearing today through this bill will be received by the centres positively. For example, very soon I will visit the Lady Gowrie childcare centre in Thebarton. It is a great facility doing renowned work through the Lady Gowrie system that was set up many, many years ago. In fact, both my children attended Lady Gowrie when they were in preschool and the education they received there as toddlers was amazing. I take my hat off to Lady Gowrie childcare centres. I have visited many others, including Goodstart Early Learning Plympton, Goodstart Early Learning Prospect, the Parkside Community Child Care & Early Learning Centre, the Unley Community Childcare Centre and many others—Precious Cargo Montessori and, of course, Little Oxford Montessori. They are all doing amazing work and all caring for our children but, most importantly, providing an early education. For the children who are there for preschool, their brains are developing, they're learning and they're going to get the best start and best chances in the world when they start their primary school.

When you visit these centres, you get a greater sense of the importance of their work. When you sit and meet with parents, committee members and, of course, childhood educators who work there, you get a sense of how important this work is. You also get a sense of how hard they work, but, most importantly, you get a sense of the absolute commitment of these people, many of whom have been in this sector for a number of years. They do it because they're committed to this sector, not because of the pay.

As I said, I've sat and spoken with them. Recently, I went to the Unley Community Childcare Centre, where I met with Djarra Liotta-Ndiaye, an early childhood educator there, and with Nica Hilditch and Kate Goodwin-Smith, who are advocates and parents. They told me about their trials and tribulations. They told me about the long hours that they worked and their difficulties in recruiting staff. Even though it's wonderful to see families receiving cheaper child care under this government's proposal, there are still simply not enough educators to meet this demand. That's why this bill is so important. It is clear how critically needed this pay rise is for childcare workers. We are desperately keen to retain many workers and know how important it is to help parents and carers struggling with cost-of-living pressures.

Our government is absolutely committed to seeing Australians earning more and keeping more of what they earn, and we will keep working every day to deliver for all Australians, including child educators. We all know that Australians are doing it tough; there's no doubt. I hear it when I go doorknocking, when I'm out and about in my electorate and when I'm talking to people. Certainly, child educators are among the lowest paid workers across industries. This is why our government's No. 1 priority is easing the cost-of-living pressures that are around at the moment by bringing inflation down—as we've seen, it has nearly halved since we got into government—and with our tax relief and a whole range of other things. That's why this Albanese Labor government has introduced this bill. That's why, as I said, we delivered a tax cut for all Australians, including 93,000 people in my electorate alone, with an average tax cut of $1,540 per annum. Those tax cuts are providing greater tax relief to low- and middle-income earners, who, like our child educators, are disproportionately women. These tax cuts see 90 per cent of women taxpayers retaining, on average, an additional $707 per year compared with the previous legislated tax cuts. So this bill that we're debating here today will also help reduce the gender pay gap.

As the Prime Minister outlined in his speech yesterday, this is a good policy and a very, very necessary policy. Wages in early childhood education and the care work sector, which are very female dominated workforces, are among the lowest of the caring professions. These are the people that are looking after and developing our children and grandchildren. These are the people that are doing all they can to give those children the best chance in life as they grow older and go into school.

As I said, the award rates for professional qualified educators often are comparable to rates for most unqualified workers; they're pretty much the same. An effective supported bargaining process will also lift pay and conditions for the workforce and contribute to the government's ambition for a universal high-quality sector. With gender equity at the heart of the workplace relations system, government funding in response to supported bargaining will contribute to improvements in attraction and retention within the early childhood workforce sector. Having a sustainable qualified workforce promotes workforce participation by enabling more parents and carers to engage in work, study and training and improves educational outcomes by providing, as I said earlier, that high-quality education and care to the most important people in this nation: the next generation of Australians.

Ian Goodenough (Moore, Liberal Party) Share this | Link to this | Hansard source

Order! It being 1.30 pm, the debate is interrupted in accordance with standing order 43. The debate may be resumed at a later hour.