Federal Casey MP Aaron Violi has criticized the Labor Government’s policy on early childcare, arguing it fails to address the critical shortage of early childcare places in the Casey region, which he says should be the top priority.
The Federal Government has announced funding for a 15 percent wage increase for Early Childhood Education and Care (ECEC) workers, which will be implemented over two years. The increase will begin with a 10 percent rise in December 2024, followed by an additional 5 percent in December 2025.
This pay raise means that a typical ECEC educator earning the award rate will see their weekly pay rise by at least $103 from December 2024, and by at least $155 from December 2025.
Prime Minister Anthony Albanese emphasized the importance of valuing and fairly compensating early educators, stating, “Early educators shape lives and change lives. We can never thank them enough for what they do. Knowing your child is safe, happy, and learning alongside their friends is priceless. Giving the next generation the best start in life is essential. Today we deliver fair pay for the people who make this possible.”
Albanese also highlighted that the agreement is designed to keep fees down for families, noting that the government’s cheaper childcare policy has already delivered increased subsidies to over a million families, providing significant cost-of-living relief.
The Australian Government is set to provide an estimated $3.6 billion to support the wage increase over two years for the ECEC workforce. Eligible childcare providers will need to apply for the funding, with applications expected to open in October 2024. To qualify, providers must engage staff under a compliant workplace instrument, limit fee increases to no more than 4.4 percent over the next 12 months to maintain affordability for families, and pass all funding directly to their employees through increased wages.
A spokesperson for the Education Department stated that this commitment is aimed at retaining existing early childhood educators, who are predominantly women, and attracting new employees. “It will also help make sure ECEC workers are fairly paid without the costs being passed on to families and improve access to high-quality ECEC,” the spokesperson said. “This is a win for workers, a win for families, and will help ease cost of living pressures.”
The funding will be phased in starting from 2 December 2024.
Despite supporting higher wages for all Australians, including early childhood educators, Mr. Violi expressed concerns about the effectiveness of the Labor Government’s childcare policy. “Labor promised families cheaper childcare, yet 12 months later, out-of-pocket costs have increased by 8.4 percent, and there are still no new places for regional and peri-urban communities,” he said.
Violi pointed out that in the Casey community, around 16 children are competing for every available childcare place due to a severe shortage. He also shared that he has spoken with local parents who are struggling to find childcare, with some placing their names on waitlists as early as their 12-week pregnancy scans.
Mr. Violi accused the Labor Government of ignoring advice from the Australian Competition and Consumer Commission (ACCC), which found that a “one-size-fits-all” approach to childcare policy would leave some communities under-served or without adequate access to services. “The Albanese Labor Government has ignored this advice by failing to invest in childcare places in our community and continuing their one-size-fits-all approach,” Violi said. “I will continue calling on the government to increase childcare supply to bring down costs for local families.”
The wage increase will be provided through an ECEC Worker Retention Payment, with early education providers opting in for the scheme. To participate, employers must also be approved to receive the Child Care Subsidy (CCS) on behalf of families and provide care in a center-based environment. The Education Department is also working closely with the Family Day Care and In-Home Care sectors to determine how best to support their workforce, with further information expected soon.