Media release
26 March 2025
The Early Learning and Care Council of Australia (ELACCA) has welcomed last night’s Federal Budget, which lays the foundation for universal early learning and care.
‘We congratulate Treasurer Jim Chalmers, Minister Clare and Minister Aly on the investment outlined in the Federal Budget for early learning and care,’ said ELACCA CEO Elizabeth Death.
Ms Death also welcomed new funding announced last night, targeted funding at supporting early learning and care services impacted by recent ex-Tropical Cyclone Alfred. $2.5 million was provided over two years from 2024–25, for a one‑off of $10,000 to eligible approved services closed or partially closed for eight days or more due to impacts of the cyclone.
ELACCA noted additional funding of $4.5m announced last night for Services Australia to make system changes to ensure consistency, following the passage of the 3 Day Guarantee legislation.
Much of the significant investment provided for our sector in the Federal Budget featured in the 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO) including:
- $3.6 billion to support a wage increase for the early childhood education and care workforce through the Worker Retention Payment.
- $1.0 billion over five years from2024–25 to establish the Building Early Education Fund, including provisioning $500 million for future investments.
- $426.6 million over four years from 2025–26 for the 3 Day Guarantee, softening the Child Care Subsidy (CCS) Activity Test from January 2026 to ensure families are eligible for at least three days of CCS per week for early childhood education and care. (Noting ELACCA supported legislation passed by Parliament last month enabling this change).
- $10.4 million over three years from 2024–25 to develop an Early Education Service Delivery Price to enable Government to better understand the cost of delivering services around the country.
‘We look forward to working with the Department of Education to support ongoing important reform activity in our sector, including initiatives funded in the Federal Budget’ Ms Death said.
‘It will be rewarding to see the threads of important policy reform pulled together over the coming years, along with further recommendations from the Productivity Commission, particularly relating to quality, safety and well-being, inclusion and affordability’ Ms Death said.
It is ELACCA’s vision that all children in Australia have access to inclusive, high-quality early learning and care, delivered by a skilled, valued workforce.
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For more information please contact:
Sally Maddison
Early Learning and Care Council of Australia
PO Box 348
Annandale NSW 2038
Mob: 0498 228 762
About us:
The Early Learning and Care Council of Australia (ELACCA) was established to promote the value of quality early learning and care as an integral part of Australia’s education system. Our 18 CEO members include some of the largest early learning providers in the country, representing both not-for-profit and for-profit services. ELACCA members operate 2,017 long day care services, 320 preschool/kindergarten services and 88 OSHC services, covering every state and territory. They offer one-quarter of all the early learning places in Australia. Together, our members serve 232,978 children and their families, and employ more than 59,000 staff.
As well as promoting the value of quality early learning and the need for greater public investment, ELACCA advocates for the right of all children to access quality early learning and care, particularly children facing disadvantage. We do this by drawing on the knowledge and practical experience of our members and representing their views to decision makers in government, the media and the public.
