Second Reading Speech - Early Childhood Education And Care (Three Day Guarantee) Bill 2025

Ask any parent, and they'll tell you early education and care is an essential service. It helps them get back to work and helps their children get ready for school. Under
the Liberals the cost went through the roof and the rules were tightened to make it harder for some children to get the start in life they deserve. We're fixing that.

Over 10 years the cost of child care exploded by more than 49 per cent—double the OECD average—under Abbott, Turnbull and Morrison. We said we'd cut the cost of child care and we have, for more than one million families right across the country. As a result of the changes we made and passed through this Parliament two years ago, a family on a joint income of about $120,000 has saved $2,768 since July 2023. That's helped a lot of parents get back to work and put more money in their pockets, and it's meant more children are now getting the benefits of our early education system. The number of children in our early education system is now about 100,000 more than it was when we were elected 2½ years ago. That's a good thing. There are also 1,000 more centres and more services. That's good, too.

When we came to office 2½ years ago, something else was happening. The people who educate and care for our children were leaving the sector in droves. They were leaving the job that they loved. The attrition rate was through the roof. That's now changed, too. The reason for that is the 15 per cent pay rise that we're now rolling out. The best example of that is what's happening at Goodstart Early Learning, the biggest childcare operator in the country. At their centres, across the country, job applications have now jumped by 35 per cent. Expressions of interest have jumped by 50 to 60 per cent, and vacancy rates are down by a massive 28 per cent. We're seeing that right across the country. Vacancy rates right across the sector are now down by 22 per cent. It turns out that, if you pay people more, more want to do the job. Early educators are some of the most important workers in this country and some of the most underpaid. They were leaving the job that they love, the job that we need them to, not because they didn't want to do it but because they couldn't afford to keep doing it. That 15 per cent pay increase is fixing that.

The next step in making our early education system better and fairer is making sure that more children who currently can't get access to it get that chance. In February 2023, we asked the Productivity Commission to comprehensively review our early education system. We asked them to help build a blueprint for reform and tell us how we can build a truly universal early education system. We got their final report in June of last year. One of the things it says that we have to do if we want to build that universal early education system is build more centres where they don't exist, what are sometimes referred to as 'childcare deserts'. We're doing that. In December, the Prime Minister announced that, if we win the next election, the government will create a $1 billion Building Early Education Fund. This will be the single biggest ever investment by an Australian government in new childcare services. It will build or expand over 160 early education and care centres where they're needed most. I want to thank GrainGrowers, who said that this is positive step and that this fund will help expand and build new childhood education and care centres in areas of need. I want to thank the National Farmers Federation too for imploring the Liberals and the Nationals to match what we're doing. They get it. Unfortunately, the Liberal Party and National Party haven't heard them, because they don't support this. They've spent 2½ years in this Parliament talking about childcare deserts. They spent a decade in government doing nothing about it. Now there is a $1 billion fund on the table that they could support, but they choose not to. It's unbelievable. The Productivity Commission also recommended something else that we need to do next. That's to get rid of the Liberals' activity test. This is a real barrier that was purposefully put in place by the Liberal Party to limit access to early education for a lot of children—in particular, a lot of disadvantaged children and kids from poor families. It is deeply unfair. A test to determine if your child is worthy of accessing early education is one that no family should have to pass. The Productivity Commission report gives us a definition of what a universal early education and care system could and should look like. It says it's a system where every child can get access to affordable early education and care three days a week or 30 hours a week. This bill gets rid of the Liberals' activity test and replaces it with a guarantee of access to three days a week of government supported early education and care for every child who needs it. It's still means tested, but it means that families will not be left out because parents are looking for work or preparing to go back to study. It means that over 100,000 families will be able to get more subsidised hours of early education and care. And it means real cost-of-living relief for 66,700 families in the first full financial your alone. Those families will save an average of $1,370 per year on their childcare costs. About half of those families earn less than $100,000 per year. Lower-income families will save even more: an average of $1,460 a year.

This is going to make a real difference for a lot of young families. It will help with the cost of living but it will do more than that. Fundamentally this is about helping every child get a great start in life—what every parent wants for their children and what every child deserves—helping them to get ready to start school, helping to make sure they don't start school behind. That's what early education does. This is not babysitting; it's early education. The evidence is clear: children who get access to early education and care are more likely to start school ready to go, ready to learn. They're also more likely to finish school and then go on to more study. Former US President Joe Biden often made the point that a child who goes to preschool is 50 per cent more likely to go to college. At the moment, while lots of Australian children get the benefit of this life-changing opportunity, not all do. As the Productivity Commission pointed out in its final report, at the moment it's children who need it most who are least likely to access early education and care. In 2021 only 54 per cent of children in the most disadvantaged areas were enrolled in early education and care, compared with 76 per cent of children in the highest socioeconomic areas. The most recent Early Development Census report found that only 42.7 per cent of children experiencing the highest level of socioeconomic disadvantage were on track when they started school, compared with 54.8 per cent of all children. That's what this is about: helping them, helping to make sure more children are ready to start school.

This bill does something else, too. As part of our commitment to closing the gap we are setting a target of ensuring that at least 55 per cent of Indigenous Australian children are developmentally on track. At the moment it's 34 per cent. That's a big gap. Not unsurprisingly, Indigenous children's attendance at early education and care is way below the national average, and the activity test is one of the reasons for this. That's why this bill increases the base entitlement to 100 hours for Indigenous children. It's a really important change—one that Indigenous families and communities have been calling for since the activity test was created. And we have listened. You only have to listen to the words of the CEO of SNAICC, Catherine Liddle, after the Prime Minister announced this policy to know how important this is. This is what Catherine said:
This can be a game-changer for our babies. It will mean more children are developmentally ready for school, setting them up for a thriving future.

It's just one part of the work we need do to close the gap, and I am so very proud that it's part of this bill. I want to thank the Prime Minister for his leadership in driving reform in this area, and I know how personally important it is to him to see these changes being made. I also want to thank my dear friend and colleague the Minister for Early Childhood Education, the awesome Anne Aly. I also want to thank our offices, and I want to thank our department for the work they have done in preparing this legislation. And I want to thank our early educators and our teachers, and I hope you see in this bill how this government values the important work you do. I also want to thank everyone who has called for this for years and years and years—groups like the Parenthood, whose CEO, Georgie Dent, called this 'a paradigm shift'; people like Ros Baxter, the CEO of Goodstart, who said, 'This will change lives;' or Jay Weatherill at the Minderoo Foundation who called this 'a momentous step'; or the Centre for Policy Development, who said that this guarantee 'is a game-changer' and that it demonstrates 'a real dedication to delivering a universal system'; or the Business Council of Australia's Wendy Black, who said that they have 'long called for an early childhood education guarantee based on quality, universal access to give children a strong educational foundation'.

This is important reform for an essential service for more than a million families across the country. It helps parents get back to work, but, even more important than that, it helps the next generation of Australians to prepare for school, to prepare for their life ahead. That's what makes this reform so important, and I am so happy to commend it to the House.