Childcare Regulations to Undergo Major Review Led by David Seymour

• New review targets early childhood education sector regulations to address cost and complexity issues.
• Government’s coalition agreement with ACT and National includes multiple regulatory reviews.
• Parents to benefit from new ECE subsidies starting next month for partial fee reimbursements.

David Seymour, Minister for Regulation, has announced the first “red tape review” targeting early childhood education (ECE) sector regulations. This initiative is part of a broader government plan to review various sectors, as agreed upon in the coalition agreement between National and ACT parties.

This review aims to address critical issues such as affordability, availability, and the complexity of regulations within the ECE sector. Seymour stated, “Parents want to know their child is safe and well cared for, but costs and waiting lists because of burdensome rules and regulations put ECE out of reach for many.” He highlighted that existing regulations sometimes fail to prevent the harm they are meant to avoid, necessitating a thorough assessment of their relevance and impact.

The review will involve extensive consultation with stakeholders, including teachers, centre owners, caregivers, parents, government agencies, child advocacy groups, unions, and research bodies. The focus areas will encompass education, health, safety, child protection, food safety, and the conditions of buildings and workplaces related to early childhood education. Funding will be reviewed separately.

Within six months, the ministry will present a series of recommendations to Cabinet, proposing changes or eliminations of ineffective regulations. Seymour noted the collection of numerous anecdotes highlighting problematic regulations in the ECE sector, emphasizing the need for a “search and destroy mission” to identify and remove unnecessary rules.

In addition to this review, new childcare subsidies will commence next month as part of National’s flagship policy. Parents and caregivers will be eligible for partial reimbursements of up to 25% of their weekly ECE fees, capped at $75 per week. Applications for these reimbursements can be made on a three-monthly basis through Inland Revenue’s online platform, MyIR. Finance Minister Nicola Willis announced that approximately 21,000 families would benefit from this scheme, costing $723 million over four years.

The Ministry for Regulation, established as a result of ACT’s pre-election promises and the coalition agreement, will spearhead these reviews. The ministry, which replaced the Productivity Commission, aims to identify and eliminate burdensome regulations across various sectors. A second sector review is expected to begin before the end of the year.

Seymour concluded that the primary goal is to ensure the health, safety, and well-being of children in ECE settings, while making the system more accessible and less cumbersome for parents and providers.