Real hope for a big helping hand for families around Australia, with a recommendation regarding childcare from the Productivity Commission, the Australian Government’s independent research and advisory body on economic, social and environmental issues affecting the welfare of Australians.

The Productivity Commission has recommended the federal government should eliminate the childcare subsidy activity test and make childcare free for families earning less than $80,000.

The commission has made 56 recommendations for the government to reform early education and after-school care.

If the changes are adopted, the commission found every child aged from 0 to 5 would have access to ECEC for at least 30 hours or three days a week for 48 weeks of the year.

Research has found quality early education and care early leads to better health, education and employment outcomes later in life.

It lays the foundation for lifelong development and learning. Additionally, children who attend preschool are generally better prepared to start primary school.

This is aiming to make it more accessible, inclusive and affordable for all Australian families, including those on low incomes and living in regional and remote areas.

The board was asked to figure out how to bring in early childhood education and care (ECEC) across the board in Australia.

The commission found to achieve a long-term goal, the government should cut the activity test and increase the rate of the childcare subsidy to 100 per cent for low-income families.

Families earning up to $80,000 or families with children aged under five with an income of $140,000 would obtain free childcare.

The subsidy would then gradually decrease to nothing for families who bring in over $500,000.