USU Demands Federal Funding Boost for NSW Local Childcare

In Short

• The Funding Crisis: The USU reports that NSW councils have lost billions over the last decade due to "cost-shifting," forcing a choice between infrastructure and community services.
• Childcare at Risk: Not-for-profit council childcare is outperforming for-profit centers, yet lack of federal support is threatening the availability of quality care in regional areas and Western Sydney.
• The 1% Demand: The Union is calling for federal grants to be restored to 1% of Commonwealth tax revenue, alongside a federally funded apprenticeship scheme for every council.

The United Services Union (USU) is calling on Senators and MPs to support a major funding boost for local councils to prevent further cuts to essential community services across the state. 

As the House of Representatives inquiry into local government sustainability concludes its submission phase, Branch Secretary, Graeme Kelly said workers in NSW are struggling to maintain infrastructure and services while dealing with the burden of rate pegging. 

"The local council is often the heart of our community," Mr. Kelly said. 

"But in New South Wales, for-profit Early Childhood Education Centre (ECEC) providers are more likely to fail minimum standards than not-for-profit providers like councils. 

“We need federal funding to prioritise local government ECEC, so families get the quality care they deserve."

The union’s submission highlights that New South Wales councils have been hit by a loss of billions of dollars over the last decade thanks to cost-shifting. The USU is demanding that federal funding be tied to a commitment that councils protect good jobs with secure conditions. 

"We are seeing families in Western Sydney and regional New South Wales unable to find quality care because councils are being forced to choose between fixing roads and keeping childcare open," Mr. Kelly said.

"We need the federal government to support our calls for sustainable funding that recognises the value of council-run care".

The USU is calling for federal government financial assistance grants to be returned to at least 1% of Commonwealth tax revenue and for a federally funded trainee and apprenticeship scheme where every council employs apprentices and trainees. 

"Working families in New South Wales are being held to ransom by a broken funding model," Mr. Kelly said.

"We are calling for a dedicated federal pipeline to help councils reclaim the early childhood sector, ensuring that every dollar of taxpayer funding goes toward child safety rather than shareholder dividends."