A federal Department of Education study involving 274,000 Australian children indicates that those attending childcare for 40 hours or more per week face a higher risk of developmental vulnerability in areas such as social competence and emotional maturity. The research also found a link between attendance at lower-quality childcare centers and an increased likelihood of developmental vulnerability across various domains. Conversely, the study reported benefits from childcare attendance for children's language, cognitive skills, communication skills, and general knowledge.
These findings emerge as the Australian government expands financial support for childcare, while the opposition explores alternative policy approaches.
Key Findings from the Department of Education Study
The federal Department of Education study, released in December, tracked children from birth until their first year of full-time school in 2018. It integrated data from childcare, census, tax, health, welfare, and financial sources, which was then matched against survey data collected by primary school teachers.
Key findings of the study include:
- Developmental vulnerability rates increased as children spent more than 30 hours per week in childcare, with the highest rates observed for those enrolled for over 40 hours weekly.
- Specific challenges associated with longer hours included social competence and emotional maturity.
- Developmental vulnerability can predict adverse long-term mental health, well-being, and academic outcomes.
- In contrast, attendance at childcare was associated with positive outcomes for language, cognitive skills, communication skills, and general knowledge.
- The study also found that children not attending formal childcare, on average, had a lower risk of developmental vulnerability compared to those attending centers with an "at standard" quality rating, after adjusting for other factors.
- Preschool attendance was consistently linked to children being developmentally on track across all domains compared to those attending childcare in the same quality category.
- A separate finding, cited by an advocacy organization from government-commissioned research, stated that children who do not attend early childhood education and care are twice as likely to be developmentally vulnerable upon starting school.
The study assessed five early childhood development domains:
- Physical health and well-being: Encompassing physical readiness for school, independence, and gross and fine motor skills.
- Social competence: Including overall social competence, responsibility, respect, approach to learning, and openness to new experiences.
- Emotional maturity: Pertaining to pro-social and helping behaviors, and the absence of anxious, fearful, aggressive behavior, and hyperactivity/inattention.
- Language and cognitive skills (school-based): Covering basic and advanced literacy, basic numeracy, interest in literacy, numeracy, and memory.
- Communication skills and general knowledge: Based on broad developmental competencies and skills.
Delving into Childcare Quality and its Impact
The research highlighted the significant impact of childcare quality:
- Attendance at lower-quality childcare centers was linked to an increased likelihood of developmental vulnerability.
- Higher quality services reduced an average child's risk of developmental vulnerability by approximately six percent compared to lower quality care.
- Australian childcare centers are rated on a scale including "excellent," "exceeding," "meeting the standard," "working towards," or "significant improvement required."
- Data collection for this research occurred when approximately 33% of services did not meet quality standards, a figure that has since improved to around 10%.
Policy Implications and Government Responses
The study's findings are released amidst ongoing policy discussions regarding childcare:
The Albanese government has expanded financial support for childcare, making households earning less than $535,000 eligible for 72 hours of subsidized childcare per fortnight. Subsidized childcare represents a rapidly growing cost to the federal budget, amounting to approximately $4 billion in the last quarter of the previous year.
Minister for Early Childhood Education Jess Walsh highlighted the government's $1 billion Building Early Education Fund to establish more quality not-for-profit centers. She also noted a 15 percent pay raise for educators, stating it is stabilizing the workforce and foundational to quality early learning.
The opposition is exploring alternative policies, such as vouchers for nannies or family members, income splitting, extended paid parental leave, and tax breaks, rather than exclusively center-based subsidies. Opposition childcare spokesman Matt O’Sullivan stated that the government's research indicates long hours in care can affect children's emotional development and learning. He questioned the universal, center-based model, suggesting it may not suit all children, and noted that over half of children aged zero to five do not use formal childcare.
Expert Insights on Childcare Outcomes
Several experts provided commentary on the study:
Blaise Joseph, education program director at The Centre for Independent Studies, suggested that while preschool research is consistently positive, the report indicates that formal childcare benefits are not uniform for all children. He advocated for considering alternative policy options to support informal care.
Professor Karen Thorpe from the University of Queensland cautioned against immediate conclusions, noting that cognitive and language outcomes were more positive for children in childcare. She recommended focusing on improving childcare quality for children from birth to three years and stated that evidence supporting policies like using nannies is poor, with a prior trial in Australia being unsuccessful.
Georgie Dent, CEO of advocacy group The Parenthood, called for an increased focus on quality improvement in the sector. She stated that reducing hours is not feasible for many families and that maternal workforce engagement often supports financial security and mental well-being.
Dr. Caroline Croser-Barlow, chief executive of The Front Project, suggested that poorer social and emotional outcomes could be linked to high staff turnover, as children's brain development benefits from strong, consistent "serve and return" relationships with caregivers.
Broader Research and Advocacy for Systemic Reform
A 2024 Productivity Commission report and the Department of Education study indicated that early childhood education and care can improve outcomes, particularly for disadvantaged and vulnerable children. The study showed that formal childcare was associated with higher rates of being developmentally on track for Aboriginal and Torres Strait Islander children, children from single-parent households, and those with a language background other than English.
The advocacy group The Parenthood identified structural issues within Australia's childcare system and proposed four reforms:
- Paid Parental Leave: Advocating for 12 months of paid parental leave, shared between parents at a wage replacement rate.
- Early Childhood Education and Care (ECEC): Focusing on establishing quality, affordable, and accessible ECEC, noting that approximately 82% of working families rely on it.
- Outside-School-Hours Care: Calling for widespread availability of quality outside-school-hours care to address mismatches between school and work days.
- Supportive Workplaces: Urging workplaces to normalize parenting and address issues like pregnancy discrimination and the treatment of flexibility as a perk.