Childcare reforms are good news for centres

Model of family with stack of coins

4 mins

How will July’s childcare reforms impact the childcare industry? Universal childcare is one of the Labor Government's election promises and one the childcare industry has been watching closely. With the first changes to the government childcare subsidy set to come into effect this July, is your childcare centre ready for what lies ahead?


How is the childcare subsidy changing?

The maximum childcare subsidy rate will increase to 90% for the first child in childcare for families earning up to $80,000, with a sliding scale in subsidy rates for families earning less than $530,000. 

Higher subsidies will also be available to families with more than one child in child care, including school-aged children in outside school hours care. The number of subsidised early childhood education and care hours available to First Nations families will also increase.

The government has also tasked the Australian Competition and Consumer Commission with developing a new mechanism to monitor and regulate private child care providers and childcare costs to make it more affordable for families. These reforms will have significant implications for industry operators.


What will the childcare reforms achieve?

  • Better learning outcomes for children

    It’s no secret that early childhood education is one of the best ways to help children develop the social, emotional and cognitive skills they need to prepare for primary school and beyond. More affordable early childhood education and care will enable more children to access the health and education benefits of foundation years learning.
  • Increased demand = increased profitability

    These changes will directly increase demand for childcare services, particularly in communities with concentrations of qualifying  families. 

    While small, private childcare providers will continue to dominate the industry over the next few years, the recent entry of new corporate operators will likely increase competition as well as growth.
  • Workforce participation for women

    Aside from providing more years of vital early learning for kids and savings for parents, the changes will enable more parents, particularly mothers, to re-enter the workforce. Getting more women back into work could also help address critical job vacancies, particularly in female-prevalent sectors like teaching and nursing. 

    The early education industry is expected to benefit through enabling more qualified staff to enter the workforce, addressing current staffing shortages.
  • Increased reporting and monitoring

    The reforms also include measures designed to increase transparency and accountability in the sector. For example, parents will be required to pay fees electronically to decrease the opportunity for child care subsidy fraud.
    Centres will need to find ways to easily manage the changes to subsidies, including direct debit and other electronic payments methods, without putting additional pressure on staff. 


How can Ezidebit help your childcare business?

Ezidebit has supported the early education industry for over 25 years, and can provide your centre with customised payment systems that are responsive and user-friendly. 

With Ezidebit, you can create flexible, fully-customised payment options that will suit all families, regardless of their needs. What’s more, our solutions integrate with many leading childcare management software systems so you can get consolidated reporting and child care subsidy management all rolled into one. Find out more about our software integrations

Whether it’s set-and-forget direct debit, or monthly BPAY invoices, we have the right match for every family’s finances, enabling you and your team to spend less time on admin and more time enriching children’s lives..

Get in touch to find out how Ezidebit can help your childcare business.

Let’s talk




Related Articles