Today we have a reason to celebrate, because, after so much advocacy, our early years educators have achieved a much-deserved pay rise. Backed in by the Albanese government, early childhood educators make it possible for millions of Australians to do their job and support young children's early learning and development. The role they play is so important, and our government recognises and values their contribution to families across the nation. That's why I'm so proud that we will fund a 15 per cent wage increase for early childhood education and care workers.
This significant wage increase is an important next step in the government's reform of the sector. It will be phased in over two years, with a 10 per cent increase from December 2024 and a further five per cent increase from December 2025. This $3.6 billion investment from our government recognises the vital role that early childhood educators play in fostering better learning outcomes for children.
In my electorate of Corangamite, early-years educator and amazing United Workers Union advocate Raelee Fechner told my office this pay rise will be a game changer. She said:
It's a good move, some educators are working two to three jobs, and with this pay rise, they will have a much better work-life balance.
It will encourage more educators to stay in the sector, and that's good for kids because consistency in the classroom leads to better learning outcomes, and that's why this pay rise is so important—not just for workers but for families.
I remember well, back in 2018, catching the bus to Melbourne surrounded by early-year educators and standing with them as part of their Big Steps campaign, fighting for better pay and conditions. I'm so proud that our government has listened and acted and is working closely with the sector to deliver better outcomes for these workers, who for too long have failed to be recognised for the important and demanding work they do. Of course, we understand there's more to do, and that's why we're working to build a universal early childhood education and care system that's accessible, affordable and inclusive.
For a sector facing worker shortages, this significant pay rise is meaningful progress. To safeguard that progress and ensure we continue to grow the sector, our government is rolling out fee-free TAFE opportunities so that more young Australians can pursue a career as an early childhood educator. On top of this, it's now more than one year since our cheaper childcare laws came into effect. While I know the member for Moncrieff, who moved this motion, cares about early-years educators, I would like to remind her that our cheaper childcare policy has cut the cost of child care for more than one million Australian families. If you're a family on a combined income of $120,000 and you have one child in care for three days a week, this has cut the cost of your child care by about $2,000. That's $2,000 in savings for almost 6,000 families is my electorate of Corangamite. Many of these families are now also receiving more pay in their pay packet, with a tax cut of about $2,000. That's real cost-of-living relief.
The biggest childcare provider in the country, Goodstart, recently released a report showing that out-of-pocket costs have gone down and that those benefitting more from the cheaper childcare subsidies are families on low and middle incomes. The Albanese government recognises that they are doing it tough, and that's why addressing cost-of-living pressures is our No. 1 priority. Cheaper child care not only puts money back into the pockets of families; it also enables parents, especially women, to decide whether to go back into the workforce, if they wish, or increase their hours—and their pay packets.
Under our government, every early childhood educator who pays tax will now get a tax cut as well as a pay rise. Working parents will also get a tax cut and access to the cheaper childcare subsidy. The Albanese government is delivering tax cuts, pay rises and cheaper child care so that Australians can earn more and keep more of what they earn and early-years educators can receive the respect they deserve.
