Government ‘working through’ childcare reform recommendations

Recommendations for major changes to the childcare system have been described as a “really important piece of work”.

The federal government is “working through” recommendations for an overhaul of the childcare system, Treasurer Jim Chalmers says.

The Productivity Commission, an advisory body that brainstorms policy solutions, handed the government a “roadmap” for a universal childcare system on Wednesday.

Prime Minister Anthony Albanese has been given a ‘roadmap’ for a universal childcare system. Picture NewsWire / Aaron Francis

Under the proposal, all children aged 0-5 would have access to early childhood education and care for at least three days per week for 48 weeks of the year.

Mr Chalmers said on Thursday he thought it was “a really important piece of work” and the government was considering the commission’s recommendations.

He told Nine’s Today program that the government was already “increasing pay for early childhood educators who need and deserve a pay rise”.

“And now we need to focus on the access and getting closer to universality,” Mr Chalmers said.

“The (Productivity Commission) has given us some ideas on that front. We’ll go through it.

“We think early childhood education is a game changer for families and for the economy.”

The Productivity Commission recommended making child care free for families earning less than $80,000 per year.

It also recommended “abolishing” the activity test, which calculates the amount of childcare subsidy parents get based on commitments.

The commission said the test was a “barrier” to child care for low-income families and did little to encourage workforce participation.

Speaking to ABC radio, Prime Minister Anthony Albanese said that while the recommendations were being reviewed, his government would “make our own decisions.”

He said Labor’s plan to to introduce a 90 per cent subsidy for all families was not off the table.

“We’ll take into account the Productivity Commission’s recommendations,” he said.

“We’ll respond over time, but we’re absolutely committed to making childcare affordable.”

More to come