The Albanese Labor Government has announced a major reform package aimed at creating a universal early education and care system, with a $1 billion Building Early Education Fund set to launch in July 2025.
This initiative is designed to improve access to high-quality early education across Australia, particularly in underserved areas such as outer suburbs and regional communities. The fund will provide grants to early education providers and explore opportunities for the government to invest in owning and leasing services.
Prime Minister Anthony Albanese stressed the importance of early education, stating, “Every child should have the right to quality, affordable early education. That’s why we want to build a universal child care system that is simple, affordable, and accessible for every family.”
A central element of the plan includes co-locating early education services on school campuses and supporting the growth of high-quality not-for-profit providers. The goal is to ensure that every Australian child has access to at least three days of quality early education, making care more accessible and affordable for families.
As part of the reform, the government will introduce a new “3 Day Guarantee” from January 2026. This will replace the current Activity Test, ensuring that children who need it will receive three days a week of subsidised early education.
The overall reform package represents a $1.47 billion investment over five years. This includes $426.7 million for the 3 Day Guarantee, $1.03 billion for the Building Early Education Fund, and $10.4 million to develop a new Early Education Service Delivery Price.
Education Minister Jason Clare highlighted the importance of expanding early education access: “We are delivering a 15 per cent pay rise to build the early education workforce. Now, we will build more centres in the outer suburbs and regions to ensure more children can benefit from quality early education.”
Minister for Early Childhood Education Anne Aly also emphasized the broader societal benefits, particularly for women: “Accessible and affordable early learning is crucial for supporting people, especially women, who want to pursue study, re-enter the workforce, or increase their work hours.”
The Albanese Government’s reforms build on the success of its Cheaper Child Care initiative, which has already reduced costs for over 1 million Australian families. The average family receiving a Child Care Subsidy has saved approximately $4,400 annually.
Related topics: