The Australian Labor government is quietly progressing plans for universal childcare, introducing new laws that would require private operators to hand over sensitive commercial data needed to design a national system. Prime Minister Anthony Albanese has pledged to move forward with the initiative this term, aiming to make quality childcare a key part of his legacy.
The government has commissioned a two-year research project, led by consultancy Deloitte, to assess sector wages, property costs, and the experiences of families and operators. The project, known as the Early Education Service Delivery Prices Project, is expected to deliver a final report before the next federal election, potentially forming a centrepiece of Labor's re-election bid.
New changes to tax laws being progressed through parliament will allow the Department of Education to compel private companies to provide data on costs and pricing if they refuse to do so voluntarily. Education Minister Jason Clare told parliament the new powers would ensure information is “accurate, comprehensive and representative”, helping to deliver “evidence-based reforms” for the sector.
The research, costing at least $10.4 million, will inform decisions on the path to universal childcare. Various costings have been proposed: the Productivity Commission recommended a flat-fee model and free childcare for lower-income families; the Centre for Policy Development estimated a universal system could generate up to $44 billion a year in extra tax revenue and savings, though initial costs could range from $7.2 billion to $11.5 billion annually. The Parliamentary Budget Office forecast a bill of $36 billion over the forward estimates period for 50 hours of universal care per week.
