Guaranteed childcare subsidies: But do we have the places?
Published: February 12, 2025
Blog
Childcare has long been a hot topic and, as we approach a federal election, that heat is rising. With parliament to vote on Labor’s proposed guaranteed childcare subsidies, the anticipation is palpable. If successful, this move could provide much needed financial relief for families grappling with the high cost of childcare (1).
However, as we celebrate this move towards supporting working parents, we must also acknowledge a crucial reality: subsidies only work if there are enough childcare centres, workers and available places to accommodate the demand.
Call for action in South West Victoria
In regions like South West Victoria, the lack of childcare has reached a critical point. It has become so pressing that the South West Victorian Alliance - a partnership spanning the City of Warrnambool, and the shires of Colac-Otway, Corangamite, Glenelg, Moyne, and Southern Grampians - has made this issue their top priority leading into the federal election (2). Our sitting member, Liberal MP Dan Tehan, has raised the issue of childcare shortages in parliament and independent Alex Dyson, says childcare is one of the top issues voters are raising with him (3,4)
But words alone don’t solve childcare shortages.
Our childcare desert
The term ‘childcare desert’ describes areas where parents struggle to access childcare. In communities across the South West there are often two, and in some areas as many as five, children vying for every childcare place. This reality presents a challenge to the proposed subsidies. Without addressing the root causes of limited availability, the well-intentioned financial support may ultimately fall short (5).
There are many childcare deserts across our region. This is evidenced by long waiting lists, limited operational hours and, in some cases, the complete absence of childcare facilities. For parents, and disproportionately for women, this can force difficult choices between work, community participation and family needs. It’s a situation that often leads to increased stress and economic strain.
It's all about choice
Let me clearly acknowledge that some parents choose not to work. This is, and should be, a choice. But that choice is eliminated when childcare isn’t available.
People, usually women, are forced to give up work to provide care, and this not only impacts earnings but affects superannuation accrual, career progression and financial security.
Impact on families and communities
The lack of access to early childhood education also has an impact on the children who miss out, with two of every five children starting school already developmentally vulnerable. Families find themselves forced to rely on informal care arrangements, at times putting strain on relationships with grandparents or other family members (6).
This has broad implications, not only for individuals and families but also for the local economy and community. Families opting out of work have less discretionary income and less ability to contribute to the local economy. Individuals forgoing work, or working reduced hours are also a source of skills and talent that are unavailable to the local workforce.
We must address root causes, we must value care
While the parliamentary push for childcare subsidies is a commendable one, it is critical we shift our focus to actionable solutions that address the root causes of childcare deserts. Simply put, we need to ensure that there are enough early childhood educators and facilities to meet demand. To achieve this, we must focus on valuing care.
One of the greatest barriers to increasing childcare availability is the chronic undervaluing of the early childhood education and care (ECEC) workforce. The professionals in this, predominantly female, workforce often have more than one qualification and they carry the great responsibility of nurturing the children that will drive our future. For many people wanting a career in early education, the financial implications prove to be a fundamental barrier. Exhaustion and burnout are common (7).
There has recently been some positive change in pay rates (8). However, it’s too soon to know whether this will make a difference. Until we see workers attracted and retained, we must continue to advocate for fair and competitive wages that reflect the responsibility and importance of their roles.
From conversation to action
The South West Victorian Alliance’s focus on childcare deserts as we move into the federal election is clearly both warranted and timely. It’s critical to drive the conversation with our electoral candidates and, of course, it is imperative that this conversation translates into action. In a perfect world, our policymakers will listen to the voices of families, childcare workers, local businesses, and the community; acknowledge their experiences; and incorporate their insights into action that addresses the systemic causes of the problem. We certainly don’t live in a perfect world, but I am hopeful that the power of our collective voices, with the advantage of Wannon being a marginal electorate, will get the traction we need (9).
The potential for guaranteed childcare subsidies represents a significant stride towards supporting Australian families, particularly in regions like ours where the challenges are most acute. However, without addressing the fundamental issue of childcare availability, there is a risk that the subsidies become a hollow promise.
To truly support parents and nurture our future, we must take a comprehensive approach that includes fair compensation for early educators and incentives for childcare operators to expand services in areas of need. As a society, we must respect and value the roles of early educators and childcare workers and recognise that they are shaping the community of our future.
You can sign SWVA’s childcare petition at Here.
(2) https://southwestvictoriaalliance.com.au/
(5) https://southwestvictoriaalliance.com.au/news/southwestchildcare/
(6) https://www.linkedin.com/company/theparenthood/posts/?feedView=all
(8) https://www.education.gov.au/early-childhood/providers/workforce/wages