Investing in childcare will save the government big dollars in the long run

The Abbott Government’s $4.4 billion Childcare Package is vital to improving childcare affordability for low and middle income working families,  giving parents more choice about workforce participation and more children access to early learning. The package isn’t perfect, particularly in reducing access for many children from single income and non-working families. Hopefully, these flaws will be addressed when the Parliament fully considers the package.

Also important is the commitment of the Federal and all State and Territory Governments to rolling out the National Quality Framework reforms to raise the quality of early learning and childcare. This is an important piece of microeconomic reform that will improve the overall effectiveness of the education system and improve Australia’s human capital formation.

Childcare and early learning should not be seen as a cost for government or a middle class perk. The entire country benefits from the economic and productivity gains that well targeted investment in the early years can deliver.  As “The Economist” noted in its 2012 benchmarking studyof early learning that rated Australia as a dismal 28^th out of 45 countries just behind Greece:

“As countries transition towards knowledge– based economies, policy makers need to consider what can be done to develop their stock of human capital… Those countries that do this best will position themselves well for success in the decades ahead.”