Three things that could help solve Australia's childcare crisis

Australia's federal government just guaranteed three days of subsidised childcare for all children who need it – regardless of whether parents are working.

Labor's subsidised childcare policy, which scraps the controversial Child Care Subsidy "activity test", passed parliament on Thursday 13 February.

The Albanese government says the move is "an important step towards a universal early childhood education and care system".

READ MORE: Star couple finally makes red carpet debut as husband and wife

The government has also promised to invest $1 billion in building new childcare centres if re-elected this year.

Many advocates, including The Parenthood, say these are signs of positive change – they're tangible, early steps towards making childcare accessible and affordable.

So what else might be needed?

Here are three key parts of the solution, as suggested by expert guests on FW's new podcast, At What Cost?

READ MORE: Princess Diana's former lover tells all in rare interview

1.   We need the government to step in

Australia is facing a childcare access crisis.

A study by Victoria University's Mitchell Institute found that almost a quarter (24 per cent) of our population live in so-called "childcare deserts", where there are more than three children per childcare place.

Why?

READ MORE: Woman says she's found a foolproof hack to catch men cheating

It's partly because Australia's early childhood education and care (ECEC) sector is far more privatised than many other countries: about 70 per cent of centre-based ECEC services are currently run by for-profit companies.

"We've got a very market-driven system, whereas many other jurisdictions tend to rely upon direct provision, or a much closer relationship between government policy and the provision of early education and care," says Jay Weatherill, director of Minderoo Foundation's Thrive by Five campaign.

This reliance on for-profit companies contributes to our nation's widespread issues with childcare availability, he says.

"The private sector tends to look to places where it can turn a profit," Mr Weatherill explains on At What Cost?

And it's often not profitable to run a childcare service in regional or rural areas, where there may be low or fluctuating numbers of young children.

READ MORE: 'I loved you so much': Kylie opens up about personal tragedy

More affluent neighbourhoods also have higher childcare fees — which shows providers are attracted to areas where they can charge more, according to the Mitchell Institute study.

This research shows that "universal childcare in Australia won't happen without substantial changes to the current system"..

And that's where governments come in.

To help drive this much-needed change, governments – at both federal and state levels – should step in where the market has failed to deliver enough childcare access, the Australian Competition and Consumer Commission (ACCC) recommended in a 2023 report.

That report advised governments consider taking on a "market stewardship role" to help identify under-served or unserved markets – that is, to help bring ECEC services to childcare deserts.

READ MORE: Furniture choices to avoid if you want to spend less time cleaning

2. Australia must make early education a better-paid career option

Workforce shortages and high staff turnover are rife within the early childhood education and care sector. Burnt out by excessive workloads, understaffed centres and low pay, early childhood educators have been leaving the sector in droves.

But fairer wages and better conditions could help fix that.

In 2024, the Productivity Commission's long-awaited ECEC inquiry report recommended governments address the challenges this workforce faces, including improving training and career pathways.

"A qualified workforce that can deliver high-quality ECEC is the foundation of reform, and each step along the reform pathway hinges on workforce availability," the Commission wrote.

Early childhood educators were able to celebrate one win in December, when they were awarded a government-funded 15 per cent pay rise.

Here's hoping things keep moving in the right direction.

READ MORE: An iPhone user's honest thoughts on the Samsung Galaxy S25 Ultra

3. Childcare policies must be accompanied by strong parental leave policies

Finally, childcare policies don't exist in a vacuum. To really amplify the benefits of accessible and affordable childcare – to women's workforce participation, gender equality more broadly and the economy – childcare reforms should be accompanied by better parental leave.

That includes leave for dads, so men can be more involved with parenting duties from the start.

"When we're talking about what works in terms of policy, I think accessible, affordable childcare is really one of them.

"But the other thing is around parental leave and to what extent is that shared," adds Professor Michelle Ryan, from The Australian National University.

"There is evidence that sharing the parental leave early on, in the child's first year, means that men take a more practical engagement in childcare.

"And then, even if you are using childcare providers, men are then used to dropping off the child or being the one to be contacted or being a point of contact as well," she adds.

"So it isn't just about time at the time of the childcare taking place, but then how it plays itself out over the next 18 years till they leave school.

"That burden continues on and on for women taking on a disproportionate load, which starts off in how tasks are divided in the first year."

Hear more expert suggestions on FW's latest podcast, "At What Cost?". Available now wherever you get your podcasts.

FOLLOW US ON WHATSAPP HERE: Stay across all the latest in celebrity, lifestyle and opinion via our WhatsApp channel. No comments, no algorithm and nobody can see your private details.