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2010-2011-2012-2013
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE HOUSE OF REPRESENTATIVES
EARLY YEARS QUALITY FUND SPECIAL ACCOUNT BILL 2013
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for School Education, Early Childhood and Youth)
EARLY YEARS QUALITY FUND SPECIAL ACCOUNT BILL 2013
GENERAL OUTLINE
The purpose of this Bill is to establish a Special Account to administer the Early Years
Quality Fund.
The Early Years Quality Fund will provide $300 million over two years to support quality
outcomes for children by assisting the early childhood services to attract and retain qualified
hard working professionals in the sector and reduce the numbers of educators leaving the
sector overall.
The Early Years Quality Fund will assist with maintaining the affordability of early childhood
education, along with the Government's substantial financial assistance to families through
Child Care Benefit and Child Care Rebate, while ensuring the high quality of education and
care for children.
All approved centre based long day care services approved for Child Care Benefit will be
eligible to apply for the funding. Grants will be approved through an application and
assessment process using a defined set of assessment criteria to be outlined in the Program
Guidelines. Funding will be conditional on services agreeing to use the funding exclusively
for the remuneration of employees and other employment-related costs and expenses, in
relation to early childhood education and care employees. These may include but are not
limited to:
Superannuation contributions
Leave entitlements
Payroll tax
Workers compensation
Professional development activities
Wage increases will be paid in line with a wage schedule published in the Program
Guidelines.
Applications for grants will be assessed against predetermined criteria including:
a demonstrated commitment at the service to quality outcomes for children under the
National Quality Framework (NQF), including a detailed plan to meet NQF
qualification requirements
an agreement to utilise grant funds exclusively for wage increases, or other approved
purposes (i.e. on-costs, professional development), with a detailed acquittal process
a commitment to affordability for families through fee restraint limited to actual
operating cost increases (and no increases as a result of wages arising from the
operation of the Fund)
increased fee transparency requirements for services, including explaining to parents
the level of financial assistance provided by the Australian Government through
Child Care Benefit and Child Care Rebate, and meeting specific reporting
requirements for MyChild.
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Services approved for a grant will be required to enter into a Funding Agreement outlining the
obligations on the service through the life of the Funding Agreement.
The Office of Best Practice Regulation has been consulted in developing this program and has
advised a Regulation Impact Statement is not required for this Program.
The Early Years Quality Fund is an important part of the Government's ongoing investment
into early childhood education and care and will support development, professionalism and
retention of qualified workers in the sector.
FINANCIAL IMPACT STATEMENT
This Bill provides for $300 million to be credited over two years to the Special
Account based on:
Credits to the Early Years Quality Fund Special Account
Item Column 1 Column 2
Day Amount
1 1 July 2013 $135,000,000
2 1 July 2014 $165,000,000
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NOTES ON CLAUSES
Clause 1 - Short Title
This clause identifies the legislation as the Early Years Quality Fund Special Account
Act 2013.
Clause 2 - Commencement
This clause provides that the Act will commence on 1 July 2013.
Clause 3 - Object
This clause sets out the object of the Act. In particular the object of the Act is to
improve quality outcomes for children in early childhood education and care services.
This is to be achieved by enhancing professionalism in the early childhood education
and care sector by, amongst other things, attracting and retaining a skilled and
professional workforce.
Clause 4 - Definitions
This clause provides a definition for approved centre based long day care service by
giving it the same meaning as that term has in the A New Tax System (Family
Assistance) (Administration) Act 1999.
Clause 5 - Early Years Quality Fund Special Account
This clause establishes the Early Years Quality Fund Special Account (the Fund).
This clause further provides that the Fund will be a Special Account for the purposes
of the Financial Management and Accountability Act 1997.
Clause 6 - Credits to the Early Years Quality Fund Special Account
This clause provides that the Fund will be credited with $135,000,000 on 1 July 2013
and $165,000,000 on 1 July 2014.
Clause 7 - Purposes of the Early Years Quality Fund Special Account
This clause sets out the purposes of the Fund. The purposes of the Fund is to provide
funding to approved centre based long day care services which is to be used to pay
remuneration to, or for other employment-related costs and expenses in relation to
employees of those services. Additionally, or alternatively, the Fund can be used for
providing professional development activities to employees which relate to their
employment in the early childhood education and care sector.
The note to this clause provides a cross-reference to section 21 of the Financial
Management and Accountability Act 1997 which sets out the arrangements for Special
Accounts established by other Acts. In particular it provides for debits from Special
Accounts to be made.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011
Early Years Quality Fund Special Account Bill 2013
This Bill is compatible with the human rights and freedoms recognised or declared in
the international instruments listed in section 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011.
Overview of the Bill
The Early Years Quality Fund Special Account Bill 2013 (the Bill) establishes the
Early Years Quality Fund Special Account (the Fund).
The object of the Bill is to increase quality outcomes for children in early childhood
education and care services by enhancing the professionalism of the workforce in the
sector and helping approved centre based long day care services (approved long day
care services) to attract and retain a skilled and professional workforce.
The Fund will provide $300 million over two years to all long day care services,
which are approved for Child Care Benefit. Grants will be approved through an
application and assessment process using a defined set of assessment criteria to be
outlined in the Program Guidelines. Funding will be conditional on services agreeing
to use the funding exclusively for certain purposes.
In particular, approved long day care services must use the funding for payments to
eligible employees to pay for wage increases and to cover other employment related
costs and expenses as well as providing professional development activities to
employees in connection with their employment in the early childhood education and
care sector. The level of wage increase supported is proportional across the
classification scale of eligible employees. A higher level of wage increase will be
provided for diploma and degree qualified educators. This is intended to provide an
incentive for educators to further their careers by attaining higher qualifications. The
establishment of the Fund will also help approved long day care services to meet their
commitments to quality outcomes for children under the NQF.
Human rights Implications
The Bill engages the following human rights:
rights to work and rights in work in the International Covenant on Economic,
Social and Cultural Rights (ICESCR), and
the rights of the child in the Convention on the Rights of the Child (CRC).
right to education in the International Covenant on Economic, Social and
Cultural Rights (ICESCR).
Rights to work and rights in work
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The Bill promotes the right to work which includes the right to the enjoyment of just
and favourable conditions. The right to work and the rights in work are contained in
Articles 6 and 7 of ICESCR.
Article 6(1) provides that the right to work includes the right of everyone to the
opportunity to gain their living by work which they freely accept. Further, Article 6(2)
recognises that steps to be taken by States in order to achieve the full realisation of
this right include the provision of technical and vocational guidance and training
programs, policies and techniques. Article 7 sets out the obligations to recognise the
right of everyone to the enjoyment of just and favourable conditions of work -
including fair wages and a decent living for workers.
The Fund is to be used to increase the remuneration of eligible employees, including
these employees' ongoing-costs, thereby promoting just and favourable conditions of
work, including fair wages. It will also be used to attract and retain a skilled and
professional workforce by providing professional development activities to employees
in connection with their employment and by supporting employees to further their
careers by attaining higher qualifications and attracting greater levels of pay linked to
their qualifications.
The measures contained in the Bill promote the right to work by providing
opportunities for increased remuneration and support for professional development for
eligible employees of approved long day care services.
Rights of the Child
The Bill also promotes the rights of the child which are set out in the CRC. In
particular, Article 3(3) of the CRC provides that `institutions, services and facilities
responsible for the care or protection of children shall conform with the standards
established by competent authorities, particularly in the areas of safety, health, in the
number and suitability of their staff, as well as competent supervision'. Article 18(2)
of the CRC also provides that `States Parties shall render appropriate assistance to
parents and legal guardians in the performance of their child-rearing responsibility
and shall ensure the development of institutions, facilities and services for the care of
children.'
The measures contained in the Bill have the object of supporting and improving the
quality of child care provided to children in approved long day care services, by
increasing the remuneration of child care workers with appropriate qualifications. In
turn, this will assist approved long day care services to conform to the standards
established by the NQF. The provision of further funding to support qualified staff
also serves to assist parents and legal guardians of children in their child-rearing
responsibilities by ensuring the facilities and services which are provided for the care
of children are high quality and importantly, meet nationalised standards established
by the NQF.
Article 18(3) of the CRC also provides for all appropriate measures to be taken to
ensure that children of working parents have the right to benefit from child care. To
the extent this right is engaged, the measures in the Bill promote the right as the
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children of working parents will benefit from having access to increased quality of
care.
The establishment of the Fund is consistent with and promotes the protection of the
rights of a child to high quality child care, pursuant to the obligations set out in Article
3(3), 18(2) and 18(3) of the CRC.
Right to Education
Article 13 of the ICESR provides for the recognition of the right of everyone to
education. To the extent that measures in the Bill engage the right to education, the
right is promoted. The incentive for child care workers to obtain higher qualification
will likely have a positive effect not only on the quality of care children receive, but
also on the educational outcomes of the children in care. Furthermore, it is intended
that in some circumstances, funding will be used to assist employees by providing
professional development activities, thereby improving certain eligible employee's
own access to education opportunities.
To the extent the right to education is engaged, it is positively engaged and promoted
as there will be positive educational outcomes and improved access to education, for
both employees working in early childhood education and care services and the
children in those services.
Conclusion
The Bill is compatible with human rights as it promotes the right to work and rights
at, the rights of the child and the right to education.
Minister for School Education, Early Childhood and Youth
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