Profit vs Public Good: Rethinking Early Childhood Education in Australia

Recent commentary has highlighted a striking statistic: 90% of new childcare providers in Australia are run for profit. This raises a fundamental question is this really how we want to run education in Australia? Early childhood education and care is the foundation of lifelong learning. Yet, unlike primary and secondary schooling, it is increasingly dominated by private operators whose business models prioritise revenue. The debate is not simply about economics; it is about values, equity, and the future of children’s education.

The Current Landscape

• Rapid growth of for-profit providers: The majority of new childcare centres are owned and operated by private companies.
• Impact on families: Fees can be higher, and access may be uneven, particularly in disadvantaged communities.
• Impact on educators: Profit-driven models often place pressure on wages, staffing ratios, and professional development.
• Impact on children: Quality outcomes risk being compromised when financial return is prioritised over educational enrichment.

The Policy Debate

• Labor Government: Current reforms are seen by critics as incremental or “tinkering,” not addressing systemic issues.
• The Greens: Advocating for free, accessible, high-quality ECEC for all families. Their position is that early learning should be treated no differently than primary and secondary schooling as a public good, not a commodity.

Why Early Learning Matters

• Brain development: The first five years are critical for cognitive, social, and emotional growth.
• Equity: Universal access ensures children from all backgrounds have the same opportunities.
• Workforce participation: Affordable childcare supports parents, particularly women, to engage in the workforce.
• National productivity: Investment in ECEC yields long-term social and economic benefits.

The question is not whether Australia can afford to treat early learning as a public service; it is whether we can afford not to. Just as primary and secondary education are publicly funded and universally accessible, early childhood education deserves the same recognition.

Educators, families, and policymakers must ask:

• Should profit be the driving force in children’s education?
• How can we ensure quality, equity, and accessibility for all?
• What reforms will truly deliver systemic change?

The dominance of for-profit childcare providers highlights a crossroads for Australia’s education system. While incremental reforms continue, the call for free, accessible, high-quality ECEC grows louder. Treating early learning as a public good equal to primary and secondary schooling is not just a policy choice; it is a moral imperative.

Reference:
90% Of New Childcare Providers Are Run For Profit