Australia’s early childhood education and care sector may be on the verge of its most consequential reform in decades, following the Federal Government’s decision to commence consultation on a potential national Early Education and Care Commission – a move advocates say could reshape how one of the country’s most critical social and economic systems is governed to better support young children’s learning, development and wellbeing.
Announced last week by Education Minister Jason Clare and Early Childhood Education Minister Jess Walsh, the proposal signals growing recognition within government that the system supporting the nation’s early learning sector is fragmented and unfit for purpose.
The consultation process, which will involve states and territories, unions, providers and sector stakeholders, comes at a time when sector pressure is intensifying. Workforce shortages and wage insecurity, rising operational costs, affordability concerns, uneven access and growing scrutiny around safety, are just some of the issues putting early childhood education at the centre of economic and social policy debate.
For the business community, the implications stretch far beyond childcare.
Accessible, high-quality early learning is an essential part of Australia’s economic infrastructure. In addition to having a positive influence on child wellbeing, it is directly tied to workforce participation and productivity now and in the future.
This broader economic lens is central to the advocacy efforts of the Thrive by Five campaign, a national alliance of families, educators, early years professionals and organisations. The coalition has spent years campaigning for meaningful system reform so every family can have access to universal, high-quality early childhood education and care.
Thrive by Five, which includes partners Minderoo Foundation, Early Childhood Australia, The Parenthood, The Front Project and SNAICC, this week welcomed the Government’s announcement as a major milestone on the path towards improved outcomes for children.
The proposal follows recommendations made by the Productivity Commission in its 2024 inquiry into universal early childhood education and care, which identified the need for stronger national stewardship of the sector. Thrive by Five had also been calling for a National Commission Blueprint in this year’s Federal Budget.
At present, Australia’s early childhood education and care system operates across multiple layers of governance; it is federally funded and subsidised, state-regulated, and delivered through a mix of private, community and not-for-profit operators. Sector leaders argue that it is this fragmentation that has led to inconsistencies in quality, accountability and the ability to plan for the long-term.
The Federal Government has already introduced a series of reforms aimed at lifting standards and rebuilding confidence in the sector, including a National Early Childhood Worker Register, mandatory child safety training, increased compliance inspections, trials of CCTV in centres and restrictions on personal device use in childcare settings.
A Commission could represent the next and potentially most significant stage of that reform agenda.
Under the proposal, a national body could help oversee long-term planning across the sector, support workforce development and ensure services are established in areas where families need them most. The Government has also indicated it may involve reform of the existing Australian Children’s Education and Care Quality Authority.
For Nicola Forrest AO, the announcement reflects a growing understanding that investment in early childhood education has consequences far beyond the classroom.
“Australia’s future starts in our children’s early years,” she said.
“The early education and care system should foster potential and inclusion and focus on the long-term wellbeing of children. Accessibility, safety and sustainability must be at the heart of that system.”
Minderoo Foundation CEO John Hartman said the creation of a universally accessible, high-quality ECEC system would be foundational to Australia’s long-term economic and social outcomes.
“A universally accessible, high-quality early childhood education and care system is foundational to Australia’s long-term social and economic prosperity,” Mr Hartman said.
“It will give children and their families the support they need to thrive.”
The proposal has also been welcomed by sector leaders who say stronger national coordination is urgently needed to manage workforce supply, demand and service quality.
Early Childhood Australia CEO Samantha Page said there was “strong consensus” across the sector for greater stewardship to ensure families could access high-quality services within their communities.
Meanwhile, parents’ groups say public frustration with the current system has reached a tipping point.
The Parenthood CEO Georgie Dent said Australian families had been navigating a system characterised by rising fees, fragmented services and insufficient accountability.
“The reality for parents has been impossible to ignore; fragmented services, exorbitant costs, profits coming before safety and no single body accountable for it,” Ms Dent said.
Consultations on the proposed Commission are expected to begin in July.
While the structure, powers and scope of any future body remain undecided, the announcement marks a notable shift in how governments are beginning to frame early childhood education, not merely as a support service for working parents, but as a critical national investment underpinning Australia’s future workforce, economic resilience and social wellbeing.
