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Last night the Treasurer, Dr Jim Chalmers, handed down the Federal Budget which represented a somewhat modest set of allocations for the early childhood education and care sector. Key measures include:
Supporting Safety in the Early Childhood Education and Care Sector
The Australian Government has committed $17.6 million to fund the next stage of development of the National Early Childhood Worker Register (National Register). Ensuring the safety and wellbeing of every child in ECEC is a shared national priority and improving the functionality of the National Register is a key outcome that will benefit all jurisdictions and the sector. Subject to agreement by Education Ministers in July, updates will seek to improve the National Register’s functionality, including identity verification, integration with the family day care register, and other system enhancements to help approved providers use the Worker Register.
Inclusion Support Program
The Budget also includes an extra $54.8 million in 2026-27 for the Inclusion Support Program to help child care services increase their capacity to support inclusion of children with additional needs. This is in addition to the $59.2 million that was provided last MYEFO.
Thriving Kids
To support the implementation and delivery of the Thriving Kids program, the Federal Budget confirmed supports to be delivered in ECEC and school settings with $139.7 million from 2026-27 to 2030-31 to facilitate state-delivered Thriving Kids services in these settings.
Early Education and Care Commission
As members may be aware, Minister Clare and Minister Walsh announced on 7 May that the Government will work with states and territories to explore the potential development of a national Early Education and Care Commission to strengthen the ECEC system. Preliminary work with state and territory officials is underway and will be discussed at the Education Ministers Meeting in July.
Details of all key measures in the education portfolio are outlined on the Department of Education’s website as well as on budget.gov.au
FDCA will continue to advocate for targeted investment measures that recognise the unique operating model of family day care, including a remuneration support program equivalent to the Worker Retention Payment, an increase to the CCS hourly rate cap, sustainable supply-side funding to support educator recruitment, retention and service viability, alongside our ongoing push for practical reforms that reduce administrative burden and strengthen the long-term sustainability of the sector.
In 2025, Education Ministers agreed that the safety, rights and best interests of children must be the paramount consideration in education and care.
From 27 February 2026, this requirement is embedded in the National Law. This means that the paramount consideration is no longer a guiding principle under the National Quality Framework – it is now a statutory duty.
In practice, this means all decisions and actions related to the operation and delivery of education and care must consistently prioritise children’s safety, rights and best interests above all other considerations.
This obligation is enforceable by regulatory authorities.
Who this applies to
This applies to all individuals involved in the operation and delivery of education and care services, including approved providers, PMC’s, nominated supervisors, educators, staff members and coordinators, volunteers and students.
While the way this duty is applied will look different depending on each person’s role, the expectation remains the same – children’s safety, rights and best interests must always come first in all decisions and actions.
What it means in practice
The paramount consideration is not a single action. It should be consistently embedded across all areas of the service operations.
For approved providers and service leaders, this includes ensuring that:
For educators and those working directly with children, it means embedding child-focused thinking into everyday practice, including:
For further information
In celebration of National Simultaneous Storytime, taking place on Wednesday 27th May, 2026, we are giving away five copies of the selected story ‘Luna Roo the Kangaroo Baller’.
Luna Roo is a story about rising to a challenge with heart and grit, “Navigating nerves, tricky opponents, and unexpected hurdles reflects the kind of determination kids face every day. It is a powerful celebration of courage, self-belief, and pushing through when things get tough.” said Kellie John, a member of the selection panel.
If you would like to go in the draw to win one for the copies, please send an artwork, by the children in your family day care, of an animal to marketing@fdca.com.au by Sunday 17th May, 2026.
To find out more about National Simultaneous Storytime, please click here.
Next week is National Road Safety Week, an annual initiative from the Safer Australian Roads and Highways (SARAH) Group, partnering road safety organisations and Government. The week highlights the impact of road trauma and ways to reduce it.
Now in its 27th year, National Road Safety week is a great way to teach children the importance of using roads safely.
You can learn more about National Road Safety Week here.
FDCA offers more than just great public liability insurance to protect your business. We have a range of options to protect your home, your vehicle and you!
We also offer Family Day Care Legal Services through our partners, Wotton Kearney, to provide you with top tier legal advice and peace of mind.
Wotton & Kearney are one of the undisputed leaders in the legal services industry, with specific expertise in the provision of family day care and over 340 specialised lawyers operating across Australian and New Zealand.
Trusted by educators and services for over 35 years, click here or call 1800 658 699 to find out more about how FDCA has got all of your business needs covered.
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