Early Education Service Delivery Prices project

The Australian Government is working toward building a universal, affordable early childhood education and care (ECEC) system. To do this, we are undertaking a review into the costs of delivering ECEC.

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Service Delivery Prices project

The government is working toward building a universal, affordable ECEC system.

To get there, we need a better understanding of what it costs providers to deliver quality ECEC. This will help the government to:

  • gain a data-driven understanding of the reasonable costs of delivering quality ECEC
  • make further decisions about the pathway toward universal early childhood education and care.

We have engaged Deloitte Access Economics to deliver the Service Delivery Prices project including consulting with:

  • providers
  • sector peaks
  • all levels of government.

The project is informed by recommendations and findings from the recent Australian Competition and Consumer Commission and Productivity Commission inquiries.

It complements other recently announced measures including:

  • a $1 billion Building Early Education Fund to build and expand centres in areas of need
  • a 3 Day Guarantee, so that all CCS eligible families can get at least 72 hours of subsidised care per fortnight.

About the project

We have engaged Deloitte Access Economics to help us better understanding what it costs providers to deliver quality ECEC.

The Service Delivery Prices project will:

  • help us understand ECEC service delivery costs
  • collect extensive data through stakeholder consultations
  • provide data to help inform future reforms.

Deloitte Access Economics will:

  • look at key areas required to deliver quality ECEC, such as fair wages, property costs and utilities
  • review and calculate reasonable cost of providing high-quality service
  • work out additional costs of service delivery for higher needs cohorts
  • set a service baseline to ensure providers can meet all their obligations under the National Quality Framework and Family Assistance Law
  • contact providers asking for cost data and cost drivers.

The data will reflect how pricing varies across:

  • geographical locations
  • care types
  • higher needs cohorts (e.g. children aged 0-2 years old and remote locations)
  • identified underserved and possibly unserved markets
  • business types.

Get involved

Consultation will begin later this year.

To get involved, you should:

We encourage all providers to engage with this project. Help will be available to ensure everyone can take part.

This includes:

  • the Small Provider Relief Payment
  • site visits
  • supportive communicative methods.