Conditional 15 Percent Childcare Wage Boost Begins Today

The wage boost will be introduced in phases, starting with a 10 percent increase in December.

A small group of children play at the Robertson Street Kindy Childcare Centre in Helensburgh south of Sydney, Australia, on April 3, 2020. AAP Image/Dean Lewins

Starting Oct. 8, early learning providers across Australia can apply for Commonwealth government funding to deliver a 15 percent pay rise to early childhood education and care workers.

The wage increase will be rolled out over two years. However, services seeking this funding must adhere to specific conditions, including capping fee increases to protect families from rising childcare costs.

Under the conditions of the Albanese government’s funding, eligible childcare services cannot raise their fees by more than 4.4 percent between Aug. 8, 2024, and Aug. 7, 2025. This cap aims to prevent families from shouldering the cost of the wage increase.

There will also be a limit on fee growth for the second year of the wage subsidy, with the percentage cap set to be determined by a new Early Childhood Education and Care (ECEC) cost index, currently being developed by the Australian Bureau of Statistics (ABS).

Prime Minister Anthony Albanese described the move as a win for families and early educators alike, stating, “This is part of our government’s agenda to ensure Australians make more and keep more of what they earn, while providing vital cost-of-living relief.”

The wage boost will be introduced in phases, starting with a 10 percent increase in December 2024, followed by an additional 5 percent in December 2025.

For a typical early childhood educator earning the award rate, this will translate to an extra $100 per week this year, growing to over $150 per week by the end of 2025.

Education Minister Jason Clare echoed the prime minister’s sentiments, framing the policy as a dual benefit for both workers and families.

“This means higher wages for workers and lower prices for families,” he said.

Opposition Criticises Pay Rise as Election Strategy

Opposition Leader Peter Dutton criticised the policy as a short-term “sugar hit” in the lead-up to the next federal election.

While acknowledging that early childhood workers deserve better pay, Dutton questioned the sustainability of the increase.

“The government needs to explain whether this wage rise is permanent or if these workers will face pay cuts after the election,” he said.

Meanwhile, Minister for Early Childhood Education and Youth Anne Aly urged eligible early learning services to apply for the funding, emphasising the importance of ensuring childcare workers receive the full benefit of the wage increase.

“This is an opportunity for services to reward their hardworking staff while keeping costs affordable for families,” she said.