Response to NSW IPART Interim Report on the Review of NSW's Early Childhood Education and Care

ACA NSW members will recall the previous NSW Government's decision to review NSW's early childhood education and care (ECEC). This review on ECEC affordability, accessibility and consumber choice is conducted by the NSW Independent Pricing and Regulatory Tribunal (IPART) which released its Interim Report on 20 October 2023.

The IPART Review's Interim Report had 26 draft findings and 38 draft recommendations, of which the most important would be:

• the need for all governments to work together to develop an integrated funding approach (including priorities for families with lower incomes and a review of the Commonwealth's Activity Test);
• for the NSW Government to develop an ECEC workforce strategy; and
• for the NSW Government to develop a digital service and data strategy for the sector and families.

ACA NSW's response to the Interim Report had the following key emphases:

1. concerns that the Interim Report showed an absence of observation and value of the dividends of early childhood education and care within the full context of children's educational and developmental outcomes;
2. concerns that imprecise placements of the 100+50 new/upgraded preschools can produce fee increases by up to 40% and cannibalise existing services' qualified educators and teachers; 
3. an underappreciation of the differences between privately-owned services and not-for-profit services, especially when not-for-profit services broadly do not pay company taxes (25%-30%) or NSW payroll taxes (5.45%) and has exclusive access to the NSW Department of Education's Early Childhood Education and Care Grants (eg $478m in FY2021/2022);
4. the need for simplification and/or streamlining of legislative and regulatory requirements without sacrificing quality of children's outcomes; and
5. the potential need for a NSW-specific digital strategy in order to assist superior planning anddecision-making outcomes.

The NSW IPART plans to produce a Final Report for the NSW Government by December 2023.

For any further information/clarification, members can contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 20 NOVEMBER 2023