Now lawWork & Super Introduced in the House of Representatives, 12 Aug 2026

Childcare pay boost funded to 2028 and tied to safety

This law puts another $3.65 billion into the fund that pays for higher wages in childcare. Centres that take the money can be told to meet the national standard for children's health and safety.

Official name: Wage Justice for Early Childhood Education and Care Workers (Special Account) (Extending Support and Strengthening Safety) Bill 2026

Who it affects

• Childcare educators, teachers and staff: Their pay stays 15 per cent above the legal minimum until 30 June 2028, as long as their centre takes the grant.
• Parents who use childcare: Centres that take the money must limit how much they raise fees.
• Childcare centres: They can be made to meet the national health and safety standard to keep getting the grant.
• Family Day Care and In Home Care workers (carers who look after children in a home): The government has said they can get the payment for the first time.

Childcare pay in bottom tenth

Early childhood education and care means childcare, kindy and similar services for young children. About 211,500 people work in it. Most of them are women.

The Productivity Commission is the government's research body on the economy. It found childcare workers are poorly paid.

In May 2023, educators' average weekly pay was in the lowest tenth of all jobs. Early childhood teachers earn about 20 per cent less than primary school teachers.

In August 2024 the government promised $3.6 billion for the Worker Retention Payment. This is a grant to childcare centres. They must pass it on to staff as higher wages.

It lifted pay to 15 per cent above the award. The award is the legal minimum pay for the job. A 2024 law set up a separate fund to hold the money.

The payment was meant to stop on 30 November 2026. The Fair Work Commission is the national body that sets award wages. It has ordered its own pay rise for these workers. That rise comes in steps, with the last step in June 2029.

In May 2026 the United Workers Union, which speaks for many childcare workers, said educators would strike in July because there was no money after November. On 17 June 2026 the government promised another $3.6 billion. That keeps the payment going to 30 June 2028.

$3.65 billion more

The law puts $3,654.4 million into a separate fund called the Wage Justice special account. That is the full amount promised for the budget years 2026-27 to 2028-29. A budget year runs from July to the next June.

Putting it all in at the start means grants can keep being made as centres apply. Parliament can still add more money through the normal budget laws if needed.

Say you are a childcare educator paid the award rate plus 15 per cent. Without this money, your centre would have had no government money for that extra pay after November 2026.

Money tied to child safety

The law adds a new goal to the Act. That goal is to make childcare better and safer.

Every childcare service is rated by a state or territory agency against the National Quality Standard. One part of it, called quality area 2, is about children's health and safety. It covers keeping children safe from harm, injury and infection.

The grant deal can now say a centre must hold a rating of at least Meeting the standard for quality area 2. It can set out what happens if the centre falls short. The government's notes say this could mean stopping the money or ending the deal.

The head of the Department of Education can leave these conditions out where they do not fit. For example, In Home Care services do not get these ratings. They can be given other safety conditions.

The new conditions only apply to grant deals made or changed after the law started.

Small fixes and end date

The law makes clear that grants can go to all kinds of childcare providers, including groups that are not companies. Some providers are not set up as their own body in law. Then someone must sign the deal for them, so it can be upheld in court.

The whole Act was set to switch off on 30 June 2028. This law moves that to 31 December 2029. Grants are paid after the work is done. The extra time lets the last payments go out.

The old rules stay in place. Centres must pass all the money on as wages. They must keep fee rises in check. They must have a proper workplace agreement in place. That is a written deal on pay and conditions between a boss and staff.

Start date

Jason Clare, the Education Minister, brought the bill into the House of Representatives on 12 August 2026. The House passed it on 10 September 2026.

The Senate, Parliament's second house, debated it on 14 and 15 September 2026. It passed it on 15 September 2026.

The Governor-General, who stands in for the King, signed it into law on 18 September 2026. It became Act No. 88 of 2026. The changes started the next day.

How they voted

Its journey through Parliament

Official sources

• Bill page on aph.gov.au
• Text of the bill
• Explanatory memorandum
• Bills Digest

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