Labor Takes Victory

Hints, Tips & Stories
 03 May 2025

The results of the 2025 federal election are in, and Prime Minister Albanese and his team have been re-elected. See why this is good news for childcare families.        

BY HEJIRA CONVERY, KINDICARE

MAY 3, 2025

Depending on your political affiliation, you may be happy, sad or indifferent about the Labor government’s resounding win in today’s federal election. 

However, when it comes to childcare, we can all agree that Prime Minister Anthony Albanese and his team do have a big and bright vision for Australia’s early childhood education and care (ECEC) system. 

For the last couple of years they’ve shown a strong commitment to building a universal ECEC system that’s simple, affordable, accessible and high-quality for every family. 

Their Cheaper Child Care reforms have cut the cost of ECEC for more than one million families and brought women’s workforce participation to record levels. 

And with a second term now locked in, they can continue the good work they’ve started.  

In his victory speech, Prime Minister Albanese has renewed his vow to support parents with cheaper childcare, and in the past, he’s gone on record voicing support for a flat-fee system of universal childcare where parents would pay no more than $10 or $20 per day. 

This is heartening for any family paying childcare fees, and although the government’s grand vision for universal ECEC has to happen in stages, there are already moves to make ECEC much more accessible. 

From January 2026, the Australian government is replacing the contentious Child Care Subsidy Activity Test with a 3 Day Guarantee.  

This guarantees eligibility for three days of subsidised early education per week for children who need it, regardless of the work or study their parents do.  

There are also efforts to make ECEC more accessible when it comes to location.  

From July 2025, the Labor government will start to roll out the $1 billion Building Early Education Fund, which will see 160 not-for-profit ECEC centres being built or expanded in areas of need.  

As a parent, it’s also good to know that ECEC workers will be better rewarded for the amazing work they do educating and caring for our children.   

The second part of the Worker Retention Payment for early childhood workers is being rolled out from December 2025, and this means eligible employees will get a 5%, government-funded pay rise, on top of the 10% rise already in play.   

There’s also hope that a more substantial wage rise might be in the works.  

It was the Albanese government that legislated to make gender equality an objective of the Fair Work Commission back in 2022. 

And although no final decision has yet been made, the Commission is proposing a more substantial pay rise for Children’s Services Employees, phased in over five years, starting with a 5% wage rise from August 2025 

So, whether you wish Dutton had won, or are ecstatic about Albo’s resounding victory, you can rest assured that the Labor government’s commitment to ECEC is genuine and continuing.  

There is the promise of a better, simpler, fairer ECEC system under the re-elected Labor government. 

And although we’re not going to be paying $10 a day for childcare from next week, or seeing sparkly new centres popping up overnight in childcare deserts, it is good to see Albanese mentioning childcare in his victory speech.

We can certainly trust that his government wants to create an ECEC system that’s better for children and families everywhere.   

So, let's see what they do with their second term!