But Jim Chalmers has again pointed to cost concerns about Mr Albanese’s passion project.\u00a0<\/p>\n
“From the prime minister right down, there is an appetite to do more in that regard when we can afford to do so,” he said.<\/p>\n
“We’re always looking to do more where we can and where we can afford to and as always, we have to calibrate our ambitions to the budget realities that we confront.”<\/p>\n
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Jim Chalmers is concerned about the cost of delivering universal child care. (ABC News: Adam Kennedy)<\/p>\n
The estimated cost of universal child care depends on which model the government would apply.\u00a0<\/p>\n
In 2024, the Productivity Commission, which was asked by the government to look at the concept, did not back the idea.<\/a><\/p>\n Its report recommended child care should be cheaper for almost everybody, but not free or at a low flat rate.<\/a><\/p>\n “Overall, increasing the CCS rate to a universal 90 per cent or introducing a flat fee for ECEC is likely to disproportionately assist higher-income families who are not, in the main, facing challenges in terms of access to ECEC,” the report said.<\/p>\n Despite the report’s findings, the government has now asked Deloitte to examine the childcare system and to help make further decisions about the pathway toward universal child care.<\/p>\n It is expected to finalise the report and hand it to the government at the end of the year.<\/p>\n Matt Canavan says parents can already access generous childcare subsidies. (ABC News: Matt Roberts)<\/p>\n Nationals Leader Matt Canavan said he did not think it was responsible for the government to extend childcare support to wealthy Australians.<\/p>\n “We already have very generous childcare subsidies,” he said.\u00a0<\/p>\n “They are accessible for Australians on incomes up to $500,000 a year.<\/p>\n “The idea that we extend universal childcare to people on $1 million a year, I don’t think we have the money for that right now.”<\/p>\n Details light on prime minister’s legacy<\/p>\n Labor has already poured billions of dollars into childcare changes, including increasing subsidy rates,<\/a> lifting the top household income threshold to $530,000 and removing the activity test<\/a> to ensure children can access three days of subsidised care.<\/p>\n Mr Albanese first outlined his universal childcare plan<\/a> in 2020 during his budget reply speech.<\/p>\n “If I’m prime minister, I will make quality, affordable childcare universal too,” he said.<\/p>\n While not specifying an exact time frame, Mr Albanese flagged it would be a two-term reform.\u00a0<\/p>\n The expectation had been the policy would be announced before the 2028 election.<\/p>\n The prime minister had previously placed child care high on the agenda. (ABC Newcastle: Ben Clifford)<\/p>\n In February last year, Mr Albanese told parliament he wanted to implement “big, nation-changing reform”, which included universal child care.<\/p>\n “That is something we’re determined to do step by step to make sure that we get it right,” he said<\/p>\n “That is how you build Australia’s future, something that my government is determined to do.”<\/p>\n Following concerns about child safety<\/a> and allegations of abuse<\/a>, the government’s focus in recent months has been on the welfare of children, with cost pushed down the priority list.<\/p>\n State and federal governments are working to make the system safer for children, implementing mandatory training for staff and a CCTV trial.<\/a><\/p>\n Allegations of abuse at childcare centres were revealed last year. (ABC News: Michael Franchi)<\/p>\n There are also questions around whether a system that has low staff retention rates in some areas<\/a> and childcare deserts in others could cope with cheaper child care that would boost demand.<\/p>\n![\"Matt](\"https:\/\/www.europesays.com\/australia\/wp-content\/uploads\/2026\/05\/6e51f142e969d9f90d04f2c3ba37b8a9.jpeg\")
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