The federal government has announced another A$3.6 billion to boost childcare workers’ pay.

The government says combined with other changes to the minimum wage, this will mean about $255 more per week for a typical full-time educator, compared to December 2024.

The $3.6 billion continues a 15% pay rise for early childhood educators, introduced in late 2024 but due to run out at the end of 2026. The government’s renewed commitment will see educators’ pay continue at the new, increased level over the next two years.

These new funds were not part of the May budget. But the childcare union has been pushing for a renewed commitment around pay and was planning to strike over the matter.

So this is a significant announcement for educators and the sector. But is anything missing?

What happened two years ago?

In 2024, the Albanese government announced it would fund a 15% pay rise for childcare workers over the next two years, with the condition their employers limited fee increases. This was to prevent the cost of educator pay rises being passed on to families through higher fees.

At the time, it was described as an “interim retention payment” and followed the Productivity Commission noting better wages and conditions were a key way to address staff shortages in the sector.

The commission also noted........

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