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.

On this page:

About the 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 safe and quality ECEC. This will help the government to:

  • gain a data-driven understanding of the true and reasonable costs of delivering safe and quality ECEC
  • make further decisions about the pathway toward universal ECEC.

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

  • providers
  • sector peaks
  • ECEC experts
  • families and peaks
  • First Nations peaks
  • unions
  • 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.

How the project will work

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

The Early Education 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 safe and quality ECEC, such as fair wages, property costs and utilities
  • review and calculate reasonable cost of providing safe and quality ECEC service delivery
  • work out additional costs of service delivery for higher needs cohorts
  • contact providers asking for cost data and cost drivers
  • support providers in participating in the project.

The data will reflect how costs vary across:

  • care types
  • geographical locations
  • higher needs cohorts (e.g. children aged 0-2 years old)
  • business types.

Sector participation

We encourage all providers to participate voluntarily. By doing so, you will help:

  • ensure the data reflects the diversity of the sector
  • inform future reforms
  • pave the way to universal ECEC.

Help will be available to ensure everyone can take part. This will include:

  • a Small Provider Relief Payment to support small providers to engage with the project
  • one-on-one in-person and remote support from Deloitte Access Economics to help with the submission of data.

Consultation will begin soon. We will contact providers with more information about how to get involved shortly.

In preparation, you should:

Legislative powers

To support robust and representative data collection, the government has amended the Family Assistance Administration Act. The changes mean we can request information from providers about the cost of delivering ECEC, if we need it.

This power applies only to constitutional corporations.

It may be necessary to issue a notice as a last resort to help fill any data gaps. Non-compliance with a notice issued under Family Assistance Law may result in penalties.