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Since prior to the 2018 introduction of rate caps under the Child Care Subsidy (CCS), Family Day Care Australia (FDCA) has advocated around the inequity and inadequacy of the lower rate cap for family day care.
On 29 January 2024, the Australian Competition and Consumer Commission (ACCC) yesterday released its final report into early childhood education and care (ECEC) services, which in addition to giving family day care a strong hearing, affirms our long-held position that the CCS fee cap for family day care is inadequate, stating specifically:
“The family day care hourly rate cap is also unlikely to be sufficient to adequately cover costs and recompense educators” (Finding # 23)
The report goes on to make the clear recommendation (Recommendation #2a) that:
“Determining an appropriate base for the hourly rate cap and indexing the cap to more closely reflect the input costs relevant to delivery of childcare services. This could include consideration of labour costs. As part of this, the family day care and in-home care hourly rate caps should be reviewed and consideration given to increasing them. This should ensure providers can adequately cover costs, including appropriate labour costs.”
The rate cap issue has featured across all of FDCA’s submissions to governments in recent years, including annual Pre-budget Submissions, the Productivity Commission Inquiry, and ofcourse to the ACCC specifically.
The Australian Government commissioned the ACCC inquiry to get a greater insight into the factors driving fee increases in ECEC.
Overall, the ACCC report finds that the current market settings are not delivering on accessibility and affordability for all children and households across Australia and that a single approach to government regulation and intervention (‘one-size fits all’) is unlikely to deliver government objectives or meet community expectations.
The report explicitly acknowledges the importance of family day care to many households and includes specific analysis and findings about the sector throughout. It highlights that there has been a decline in availability of family day care services, which has reduced flexibility and options in the market, particularly impacting households that are culturally and linguistically diverse, in remote areas, in areas of disadvantage, or that work non-standard hours.
Further findings specific to family day care substantiate many of FDCA’s representations, which are informed by our research and the views of our members. These findings include:
The ACCC’s final report can be accessed on the ACCC’s website here.
The findings and recommendations from the ACCC’s inquiry will feed into the Productivity Commission’s all-important review of ECEC and final report which is due mid-2024
FDCA is confident that the ACCC’s acknowledgment of our long-held advocacy positions, will result in real flow on effects into the Productivity Commission and subsequently onto policy and subsidy design. They will significantly strengthen FDCA’s positions in our discussions at a Departmental and Ministerial level over the coming months and we will keep members engaged and informed as we progress.
On 25 January 2024, FDCA submitted our Pre-Budget considerations for 2024-2025 to the Australian Government. The submission recommends four key investment measures to support the continued viability of a sector that is highly valued for its flexible, responsive and affordable ECEC:
You can find FDCA’s pre-budget submission for 2024-25 as well as other submissions we have made on our website here.
We remind members that services and educators must start using the updated national approved learning frameworks from 1 February.
The frameworks are:
The Australian Children’s Education and Care Quality Authority (ACECQA) has developed numerous resources to assist services in supporting educators to implement the updated frameworks. These resources can be found on ACECQA’s website here. They include:
A new induction module for new educators and teachers is also available here.
Available to all FDCA members on both Apple and Android devices, the myFDCA App is FREE and available to download via the App Store and the Google Play Store.
The myFDCA App puts your range of exclusive member benefits in the palm of your hand to access anytime, anywhere! This means:
You can also view your membership and insurance information through the app.
How do I get the myFDCA App?
To get the myFDCA App today, all you need to do is visit the App Store (Apple devices) or the Google Play Store (Android devices) and download the app.
Logging into your myFDCA App
Once you have downloaded the app, all you need to do is log in using the same email address and password that you use to access your FDCA Member Zone.
What if I haven't activated my FDCA Member Zone?
To activate your FDCA Member Zone, all you need to do is follow these simple steps:
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