Submission to the Senate Education and Employment Legislation Committee Family Assistance Legislation Amendment (Cheaper Child Care) Bill 2022

In general we support the provisions of the Bill. However, we note that there are key features of the current child care system implemented in 2018 which have not been addressed in this Bill. They warrant further consideration and review. Some of these issues were raised in the Government’s independent Evaluation of the Child Care Package (AIFS, 2022).

NFAW supports child care measures that:

• increase child care subsidies to families to improve the affordability of child care
• better regulate child care providers’ fee charging practices
• provide greater flexibility and accessibility of child care, particularly for vulnerable families and disadvantaged communities
• help fund wage increases and better conditions for early childhood educators.

NFAW also supports ongoing funding for universal access to early childhood education in the year before full-time school, as well as support for state and territory governments to implement universal access to preschool for all three year olds (i.e. starting two years before full-time school).

While the NFAW recognises the need for a progressive system of subsidised child care for families in the short and medium term, with more support provided to families who need it most, we also advocate for the goal of universal, free early childhood education and child care for all children in the longer term. This should be part of a 10-15 year productivity agenda for long-term social and economic well-being across Australia, including measures to support child and family well-being.

We also advocate for a simpler system of child care support. The current system is impacted by different family factors (family income, size, activity level) and by different child care service types, location, fee charging practices and business models.