Australia already had a government-funded 15 per cent wage increase for eligible early childhood educators, but the sector was struggling to retain staff, with services delaying expansion, closing rooms and limiting enrolments, while the support was due to end on 30 November 2026. After announcing an extension on 17 June 2026, the government introduced and secured the Act, which adds $3,654.4 million to continue payments until 30 June 2028 and links future grants more explicitly to children's health and safety.
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2024
The retention payment system was established
The Wage Justice for Early Childhood Education and Care Workers (Special AccountA government account from which the wage-support grants are paid.) Act 2024 created the special accountA government account from which the wage-support grants are paid. used to administer grants supporting higher wages for eligible workers.
Australian Parliament House ↗
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Before 17 Jun 2026
Staff shortages disrupted early learning services
Services were delaying expansion plans, closing rooms and limiting enrolments because they could not find enough staff.
Hansard ↗
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17 June 2026
Government announces a two-year extension
The government announced that the 15 per cent wage increase would continue for another two years to retain educators and avoid higher fees when the existing support ended.
Hansard ↗
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12 Aug 2026
Hon Jason Clare MP introduced the bill
In the House of Representatives, Hon Jason Clare MP introduced legislation to extend the wage support and strengthen conditions tied to grants.
Parliamentary timeline ↗
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15 Sept 2026
Parliament passes the bill
Both houses passed the bill in the same form, completing parliamentary passage before Royal Assent.
Parliamentary timeline ↗
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18 Sept 2026
Royal Assent made the bill law
The Governor-General's assent turned it into an Act, enabling the special accountA government account from which the wage-support grants are paid. to receive $3,654.4 million and support payments through 30 June 2028.
Parliamentary timeline ↗