The early years are a critical period in a child’s development, creating the foundations for lifelong learning and wellbeing. Participation in quality early learning environments positively impacts a child’s life outcomes and supports them to realise their full potential. Culture is a critical part of Aboriginal and Torres Strait Islander children’s development, identity and self-esteem and strengthens their overall health and wellbeing. For Aboriginal and Torres Strait Islander children and families to experience cultural safety, early years services must be grounded in cultural frameworks that reflect the protocols and practices of local families and communities.

SNAICC subcontracted Deloitte Access Economics to support the economic modelling and financial viability analysis of funding model options. The modelling and analysis consider the underpinning formulae and scalability of different funding models, and relevant variables such as workforce and quality.

SNAICC’s research has confirmed what ACCO early years services have been saying for decades - current funding approaches are not fit for purpose and are failing Aboriginal and Torres Strait Islander children, families and communities.

Key recommendations:

• The new funding model for ACCO integrated early years services should provide long-term certainty for sustainable service provision alongside flexibility to adjust funding regularly to account for changes in community needs and costs of inflation over time.
• The new funding model for ACCO integrated early years services pairs a new approach to recurrent funding with a framework for ongoing infrastructure planning and investment to expand ACCO integrated early years services in response to service coverage gaps.
• The Australian government should commit to leading the design and implementation of a national, systemic and sustainable approach to funding ACCO-led integrated early years services, partnering with states and territories and Aboriginal and Torres Strait Islander people, with a focus on ensuring equitable access and coverage across the country.