Press Conference - Brisbane

MINISTER ANNE ALY: Well, thank you, everyone, for coming this morning. As you heard, huge announcements today about early childhood education and care. 

Now, when we first got into government we made a commitment to decrease the cost of early childhood education for over a million families, and we’ve turned that commitment into progress. When we first introduced the Cheaper Child Care Bill prices – out-of-pocket expenses for early childhood education and care went down by 17 per cent. Today, they’re still lower than what they were when the Liberals first introduced the child care subsidy in 2018. 

Over the last two and a half years we’ve made significant progress in building the foundations of a universal early childhood education and care system. We’ve decreased the cost for out‑of‑pocket expenses for parents and families in early childhood education and care. And, importantly, we’ve signed off on the 15 per cent increase to the wages of early childhood education and care workers. 

We’ve got now 34,000 more early childhood education and care workers in the system than when we first took office. And we’ve got another 125,000 in training largely because we opened up free TAFE to early childhood education and care workers. But we know there is more work to do, and that’s what the Prime Minister announced today – the second phase of our reforms working towards that pathway of a universal quality early childhood education and care system. 

Today, the Prime Minister announced that we will be replacing the Liberals’ activity test with a three-day guarantee. That means every child in Australia has a guarantee of being able to access the transformative benefits of early childhood education and care three days a week. That’s one of the announcements made today. 

The second announcement the Prime Minister made today is our early childhood education and care building fund - $1 billion going towards building Australia’s future. Now, we know that we’ve got a pretty good system out there. But we know that the market has failed to provide access to early childhood education and care for children in the regions, for children in the suburbs and for children in vulnerable communities. And so that’s why our Labor Government is stepping in and stepping up, building the centres and building the services that we need to ensure that every single Australian child can access those transformative benefits in those first five years of their life when their brain is developing, of early childhood education and care. 

These are pretty phenomenal announcements. I’m really proud to be part of a Labor Government that has taken seriously – seriously – the need for reform in our early childhood education and care system. In the great traditions, in the great Labor traditions of Medicare, of universal superannuation and of NDIS, Labor – only Labor Governments – will undertake the necessary reform to ensure that we have an early learning system in Australia that is affordable, that is accessible and that is inclusive, that works for every child and works for every family and that works for every community. 

Questions. 

JOURNALIST: [Indistinct] can you explain how that works? Does it mean that the government will own and run child care? 

ALY: Well, the $1 billion fund – sorry, the $1 billion Building Early Education Fund is split into two. Half of that will be a grant, and that grant will go to states, to councils, to not-for-profits, and we’ll have priorities. We want to really look at sites on school grounds, in hubs where parents can access a whole range of other services as well. The other half of it will be looking at a business case for government-owned – government-owned – early childhood education and care centres that can be leased out. 

JOURNALIST: So, you mentioned – well, the Opposition says that working people should be given priority for child care spots over people who are not working. What do you make of these comments?

ALY: Well, that’s because the Opposition sees early childhood education and care as wiping bums and noses. That's what they’ve said. That’s what they see it as. But we know that early childhood education and care is part of a quality education system. 

We don’t say to parents, “Your kids can only go to school if you work.” We don’t say to parents, “Your kids can only go to school if you earn a certain amount.” No. In the 20th century we recognised that every child has a right to school education. And in the 21st century a Labor Government recognises that every child has the right to access early education. 

JOURNALIST: Minister, won’t these announcements see enrolments shoot up, and given there aren’t enough centres or workers now, what are you going to do to address that first? 

ALY: Well, that’s why we have the Building Fund. We know that the market isn’t working in the way that we need it to work to supply early childhood education and care services in unserved or underserved markets. That means in the regions – and I’ve met with so many regional councils who say they cannot retain the other kind of staff that they need – the nurses, the doctors, teachers – because there is no early learning. That’s why we’re stepping in. That’s why we’re stepping in. We’ll initially build around 160 early childhood education and care places. 

But let me just make also this point: there are more services now out there than when we first took office. There are 100,000 more children in early childhood education and care than when we first took office. 34,000 more early childhood educators, and another 125,000 in training. So, we’ve done that work. We’re building that work. We’re building the foundations of a universal early childhood education and care system. We understand that supply and accessibility is just as important as affordability.

JOURNALIST: Can the Budget afford the $8.3 billion the Productivity Commission says that it will cost? 

ALY: The Budget is about building a better Australia and building a future for Australia. And there is no more important investment in this country than investment in our youngest Australians. 

JOURNALIST: Minister, two things sorry. Firstly, why did you not provide free early childhood education for families earning less than $80,000, as was recommended by the Productivity Commission. Secondly, we’ve heard this before because Julia Gillard had promised to build over 200 centres – 260, I think – on school grounds about ten or 15 years ago and [indistinct]. So, how will this be different?  

ALY: So, Natasha, I’m going to address the second part of your question first, and the first part is about the Rudd Government’s commitment to building on‑school sites. It was a very different context then. If you’ll recall, at that time that was when the ABC for-profit sector or for-profit centres went bust and the government had to step in at that time. We’re in a different context now and in a different time. 

I’ve already started some of the conversations with states about building on-school sites. You saw the responses in there when the Prime Minister announced that building on-school sites would be one of the priorities that we’d look at with our Building Fund. And it is – it was absolutely received with such positivity. It makes sense. It makes sense to have early childhood learning centres on school sites so that children can have that smooth transition into school after they’ve done their five years. 

On the first question around the Productivity Commission review, we’ve started. We’ve started implementing some of those recommendations from the Productivity Commission review. And one of those is that the Productivity Commission recommended a three-day guarantee, which is what we’re doing, what we’ve announced today. We’re looking to work with the recommendations of the Productivity Commission review as we progress on this pathway to universal early learning. 

JOURNALIST: Will you be opening the door to that because very poor families still can’t afford the gap fee? 

ALY: We’ll be working through the recommendations of the Productivity Commission review and the ACCC review. 

JOURNALIST: You could have free child care for families? 

ALY: We’ll be working through all of those recommendations. 

JOURNALIST: And, Minister, is the government still considering the introduction of a flat $10 or $20 daily fee for parents? 

ALY: Again, we’ll be looking through all of the recommendations of the Productivity Commission review. And look, I’m looking at international examples. I’m looking at what Canada has done. I’m looking at what Ireland is currently doing as well. You know, we have an opportunity here to learn from all of the international examples and have the best system that works for Australia – for the Australian context. 

Now, one of the other things that we’re doing is we’re looking at service delivery price. What that service delivery price can tell us is what does it cost to deliver quality early learning in different contexts, right? We know that it costs more to deliver quality early childhood education and care in rural and regional areas than it does in perhaps a suburb, like my suburb in WA where I live where there are – I can count – 10 early learning centres within walking distance of my house, one being built just two doors down from my house, by the way. 

So, you know, we want to – we’re looking at the service delivery price and we’ve funded the work that’s necessary to look at a service delivery price. And that will give us the guidance that we need around how do we fund early childhood education and care in a way that’s responsive to the needs of every community. 

JOURNALIST: This policy is pretty interventionist. Will you be expecting the private sector to hit back? 

ALY: No, not at all. The fact is that not-for-profits don’t have the capital to grow their centres. And so, if you look at the recent history, the number of privately owned centres has increased while the number of not-for-profits hasn’t increased because they don’t have the capital to expand. So, you know, I’ve worked very closely with all parts of the sector, and they are all welcoming this idea or this policy of building more centres. 

JOURNALIST: How will this plan sort of address the issue of child care deserts across the country?

ALY: Well, that’s exactly what it’s designed to do. We know that the market does not grow to certain areas, partly because it’s not profitable, it costs too much to deliver services in those areas or for a whole range of reasons. That’s why we have set up the building early childhood education and care fund. I’ve spoken to too many – too many – parents in rural and regional areas, too many local councils from rural and regional areas – and not just rural or regional areas, outer suburbs, growth suburbs. We’re addressing the issue of unserved and underserved markets. Where the market will not address the, the government, the Labor Government, will address it. 

JOURNALIST: Let’s say we’re in a child care desert and the Federal Government comes in and builds a location and leases it to a not-for-profit organisation. How does that fix the issue of not getting the workforce there or too expensive to get a workforce there and it’s too expensive to run the services there? 

ALY: We’re talking about a workforce. We’re talking about early childhood education as an essential service. You know, when I’ve spoken to councils, regional councils, they tell me that they can’t get nurses, teachers and doctors in because they don’t have early childhood education and care. Now, let’s also remember that we have free TAFE, and free TAFE in the regions is providing a lot of the workforce with the training that they need to become early childhood educators as well. 

So this is not just a one-sided, one-facet thing. We are looking this at its complexity and holistically. Looking at workforce, looking at supply, looking at affordability, looking at all of those things that we need to reach that vision of a quality, earlier childhood education and system where every child – no matter who they are, no matter where they live, no matter their background – has access to quality early childhood education and care. 

JOURNALIST: So, is this welfare for the wealthy? Why 530,000? 

ALY: We already provide the child care subsidy for families earning up to $530,000 a year. Now, you know, when people say is this welfare for the wealthy, is public schooling welfare for the wealthy? It’s not. You know, education is a right. Education is a basic right for every child. We’re extending that right to ensure that every child has access to early childhood education and care. 

JOURNALIST: But the government has obviously said previously you’re very concerned about children from very disadvantaged families are not receiving the benefits of childhood education. If you’re only making the child care and early education free for [indistinct], the risk is very wealthy stay-at-home mothers, can you see child care places and those children of, say, migrants or dysfunctional families, very impoverished families, are not going to be able to attend? 

ALY: Well, let me start by saying this, Natasha: first of all, when we made changes to the child care subsidy with our Cheaper Child Care Bill in 2022 we did change those rates. So, we made it – the subsidy, up to 90 per cent for families earning on low incomes of $80,000. Now, we know that that’s made some difference to families being able to access early childhood education and care on low incomes. But we also know, as the Productivity Commission told us, that some of the most vulnerable families don’t have access to early childhood education and care, and that can also be a supply issue. That’s why we’re fixing the supply issue as well. 

JOURNALIST: Minister, there’s been some criticism by the Australian Childcare Alliance. They’ve warned a shift away from subsidies to supply-side funding will actually risk the viability of centres if that level remains too low. What do you say to that? 

ALY: That’s why we’ve got the service delivery price. That’s why we’re looking at what does it actually cost to deliver early childhood education and care in different contexts, right? The cost will be very different depending on where you deliver and depending on the number of services around you, whether you’re delivering in a very thin market or a market where there is an oversupply, if you like, or at least a supply that meets the needs of the local community. That’s why we have the service delivery price, and that’s what we’ll be working on over the next two years.

JOURNALIST: What does that mean exactly? Does that mean that the government will decide which child care centres can charge a higher fee, whether it’s profiteering, or whether it’s genuinely because they have higher rental costs? 

ALY: What it means, Natasha, is that right now we don’t know what a reasonable cost is to provide quality early childhood education and care in different contexts. What it means is that that is the first step that we need to do in undertaking any kind of reform work around how we fund early childhood education and care. 

I’m not going to pre-empt what the service delivery price is going to be or what it comes up with. But we need to understand - we need to have a deep dive into the costs of providing earlier childhood education and care in different contexts. 

JOURNALIST: Can you explain about why the activity test is unsatisfactory? 

ALY: In its current form? So, the Productivity Commission review – and not just the Productivity Commission review, a number of reviews – have made the point and underscored the fact that the activity test actually locks out some of the most vulnerable children who would have the most benefit from early childhood education and care. Now, you know, the right to have early education shouldn’t depend on what your parents do or how much they earn. That is a principle that the Labor Government and that the Prime Minister articulated in his speech today and a principle the Labor Government believes in. 

The activity test locks out the children who can most benefit from early childhood education and care. It takes away the right of children to early childhood education. We’re replacing that. We’re replacing the activity test with a three-day guarantee, as recommended by the Productivity Commission review, to ensure that every child gets those benefits of early childhood education and care, is school ready, has that smooth transition into schooling and is not left behind. 

JOURNALIST: Minister, just on other matters, do you think the Prime Minister perhaps should be standing here next to you also making this announcement, perhaps also taking up questions on matter across this? 

ALY: Well, the Prime Minister gave a wonderful speech in there one that was incredibly well received by the room. And I’m very grateful to the Prime Minister for the support that he’s shown to me as the Minister for Early Childhood Education and Care and for his dedication to a universal early childhood education and care system. 

JOURNALIST: Just quickly on the incident in Sydney, do you feel like there is – or are you concerned that there seems to be rising antisemitic attacks? 

ALY: I’m incredibly concerned about rising antisemitism. There is absolutely no place for it here in Australia or, indeed, anywhere in the world. 

JOURNALIST: The Coalition says the government has enabled these attacks because of the language, the change of language, around Israel. What do you say to that? 

ALY: Well, I say the Coalition is being – what the Coalition has been doing for the last three years, which is divisive. People can make up their own minds about the character of Peter Dutton. But right now, what we need is the community to come together in its condemnation of antisemitism and in social harmony and social cohesion. And I ask everybody to think of this – what you want for yourself – to live in safety, to live in harmony, to live peacefully. I would hope we would want that for every other Australian. 

JOURNALIST: Did the Prime Minister use a baby more to avoid tough questions about his language around these attacks on Jewish communities? 

ALY: Using a? 

JOURNALIST: Baby as a [indistinct] today? 

ALY: I’ve observed the Prime Minister around children for a very long time. He has a natural affinity with children, a genuine natural affinity with children. And I think suggesting that the Prime Minister would do that is pretty wrong. 

JOURNALIST: Do you - you concerned that Australia has become a dangerous place for Australians of Jewish faith? 

ALY: I’ve heard from my local Jewish community that they don’t feel safe, and that breaks my heart because I don’t believe that any Australian – any Australian, regardless of your faith, regardless of your background, regardless of who you are – should feel unsafe. Now, I come from a minority faith myself. People know that about me, people understand that about me. And my faith, my faith community, has at times experienced periods of feeling unsafe as well. And so I will extend my hand of friendship and solidarity to the Jewish community in Australia. My community knows what it’s like, and I don’t want that for them. Thank you.