The Productivity Commission has called for free early education for low-income families. 

A new report calls on the federal government to overhaul childcare subsidies to enhance access to early childhood education for children across diverse backgrounds.

The Commission proposes alterations to the childcare subsidy and advocates for monitoring fee variations and investigating costs and profits every three years. 

It suggests that the government closely scrutinise fee increases, considering regulatory responses if deemed unreasonable.

The Commision says parents have found the subsidy confusing, prompting it to recommend exploring options to make information about childcare subsidy eligibility easily accessible and understandable on government websites.

The draft findings also highlight challenges faced by families from lower-income, Aboriginal and Torres Strait Islander backgrounds, and those with disabilities. 

It stresses the extra barriers these families encounter and notes the lower quality of services in disadvantaged communities. 

The commission recommends amendments to disability standards for education and inclusion funding eligibility.

Additionally, the commission’s draft report underscores the importance of expanding the early childhood education workforce, stating that without this expansion, achieving universal access is unlikely. 

It draws parallels with workforce shortages in the aged care sector, highlighting the need for addressing concerns about pay, conditions, and career opportunities for the early childhood education and care workforce.

Early Childhood Education Minister Ann Aly has acknowledged the need for further work to address access inequities. 

The federal government says it supports the commission's findings.

The commission is set to deliver its final report in June 2024 after community consultation and public hearings.