FDCA’s 2026-27 Pre-Budget Submission outlines the urgent challenges facing family daycare and sets out targeted policy and funding measures to stabilise the sector. It focuses on practical reforms to support educator sustainability, address structural viability pressures and create the conditions needed for family daycare to remain a strong, accessible and valued part of Australia’s early childhood education and care system.
Key recommendations and investment measures outlined in FDCA’s Pre-Budget Submission include:
- Ongoing funding for a remuneration boost program for family day care staff and educators, equivalent to the “Worker Retention Payment” wage increase program developed for Centre Based Day Care (CBDC) and Outside School Hours Care (OSHC) services.
- Funding for a dedicated entity for family day care to support the development and execution of a sector led strategic plan supported by a resourced FDC reform team.
- Investment in reducing administrative burden through technological solutions.
- Addressing under-served/unserved markets through supply side funding for family day care.
- Raising the hourly CCS cap rate for family day care (to be at a minimum) in line with the calculation afforded to centre-based care services so that it more accurately reflects the cost of providing family day care.
- Application of an additional loading of 20% to the recalculated CCS fee cap for nonstandard hours family day care to adequately reflect the cost of this type of care.
- Funding support for building sector capacity through innovation in the family day care model.
- Funding the development of a bespoke family day care traineeship program.
- Supporting and partially funding a National Recruitment Program for family day care.
- Support for dedicated measures to encourage workforce participation for priority CALD groups.
- Funding start-up support for new family day care educators.
- Funding new educator engagement support for family day care Approved Services.
To view the submission, click here.
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