The nation's peak childhood body is calling on the Abbott government and big business to back a levy on the nation's top companies to fund childcare reform, arguing it will boost GDP by billions of dollars.
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With concerns in the childcare sector that without a levy, the government's new childcare plan will be meaningless, Early Childhood Australia will release a paper on Friday that argues there is a strong economic case for upfront federal investment in the early childhood sector.
In part, this is due to the rapid brain development of children from birth to five years old, which ECA says makes investment in early education "effective and efficient".
Citing a PricewaterhouseCoopers report, the organisation says GDP would cumulatively climb by up to $10.3 billion by 2050 if children received quality childcare. The benefits to GDP from the increased employment of vulnerable children - whose parents are in the lowest income bracket - are $13.3 billion, cumulative to 2050.
ECA also noted a recent Grattan Institute report that found boosting women's workforce participation by 6 per cent - to Canadian levels - would increase Australia's GDP by $25 billion.
The government's initial plans for childcare reform were to do it within existing funds but, since late last year, the Coalition has flagged more investment in the sector - although it it yet to specify how much and where the money would come from.
Since Prime Minister Tony Abbott scrapped his $5.5 billion paid parental leave scheme scheme this week, there has been confusion over whether or not the Coalition will keep the 1.5 per cent big business levy associated with the policy and transfer it to childcare.
On Thursday, Treasurer Joe Hockey kept the uncertainty alive when he told reporters "we will have more to say about the 1.5 per cent levy in the next few weeks after we've consulted with colleagues and stakeholders".
Big business is vehemently against keeping the levy. The Australian Chamber of Commerce and Industry has said it would be "horrified" if it was maintained. In a budget submission released on Friday, ACCI suggested HECS-style loans instead to help families pay for childcare, just as it did to the Productivity Commission's inquiry last year.
ECA chief executive Samantha Page said that business would benefit from more investment in childcare, both in terms of economic growth and the future and current workforce.
"Investing in quality early childhood education and care for all children will improve their live outcomes and drive our nation's future prosperity," she said.
With Gareth Hutchens
