The Albanese Labor Government has announced ambitious reforms to build a universal early education and care system, starting with a $1 billion Building Early Education Fund set to roll out in July 2025.
This initiative aims to expand access to quality early education across Australia, with a focus on building and expanding centres in areas of need, such as outer suburbs and regional communities. The Fund will deliver grants to providers and explore options for the Commonwealth to invest in owning and leasing services.
Prime Minister Anthony Albanese highlighted the transformative impact 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 key component of the plan is co-locating early education services on school sites and supporting high-quality not-for-profit providers to grow. The ultimate goal is to ensure every Australian child has access to at least three days of high-quality early education, making care simple, affordable, and accessible for all families.
As part of these reforms, the Government will introduce the 3 Day Guarantee. From January 2026, the current Activity Test will be replaced, guaranteeing three days a week of subsidised early education for children who need it.
The reforms represent a $1.47 billion investment over five years, including $426.7 million for the 3 Day Guarantee, $1.03 billion for the Building Early Education Fund, and $10.4 million to develop an Early Education Service Delivery Price.
Education Minister Jason Clare emphasised the significance of expanding access to early education:
“We are delivering a 15 per cent pay rise to build the early education workforce. And now we will build more centres to expand access to this essential service in the outer suburbs and the regions to help more Aussie kids benefit from quality early education.”
Minister for Early Childhood Education Anne Aly underscored the broader societal benefits, particularly for women balancing work and family responsibilities:
“Accessible and affordable early learning is critical for supporting more people, especially women, to have a choice when it comes to undertaking study, re-entering the workforce or increasing their hours of work.”
The Albanese Government’s reforms build on the success of its Cheaper Child Care initiative, which has already reduced costs for more than 1 million Australian families. The average family receiving a Child Care Subsidy has saved around $4,400 annually.
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