Early Childhood Education centres will be able to keep the lights on with the cost adjustment announced in today’s
Budget, but little else.
“If you were in trouble before, this won’t change anything,” said ECC CEO Simon Laube.
With inflation in 2024 at 4%, a cost adjustment of 2% in January 2025 will see centres slowly going backwards. Employers
still have unfunded Pay Parity salary and wage increases to cover, and with $1.4 billion in funding for 20 Hours ECE for
under two’s reversed (to be replaced by FamilyBoost), early learning providers are facing significant cost pressures
that will only worsen.
“For many providers just hanging on, the cost adjustment won’t be enough to stay in business,” said Simon Laube. “ECC
members have been told the light at the end of the tunnel is the regulatory review, as removing unnecessary regulatory
costs should provide relief in-kind to providers.”
“We will also keep pushing for common sense on Pay Parity, which sees all teachers eligible for salary progression at
about 4% each year – a new cost pressure created by the previous government that was never funded.”
“On the upside, the 4.6% 20 Hours ECE funding increase confirmed in March 2024 that was some relief. And confirmation of
FamilyBoost and tax relief for parents should help some families who couldn’t afford ECE, and may stimulate new demand
that will help centres.”
“Let’s face it - it remains very challenging to provide early learning services,” said Simon Laube.