The ‘achievement gap’ – a persistent difference in education outcomes by socioeconomic background – begins at two to three years and by the time children reach school has become entrenched. 

This report examines data from the Longitudinal Survey of Australian Children (LSAC) and NAPLAN to follow the learning trajectories of children. It shows even the disadvantaged children who perform well at a very young age are overtaken by their peers from more advantaged backgrounds as they move towards school age.

The research suggests that not only are the early years important, but the first three years are crucial because children are on an uneven playing field - even before they are enrolled into preschool.

The authors recommend a child-centred, needs-based approach to early years system design and funding. However, to date Australia has taken the opposite road when it comes to early childhood education and care (ECEC) prior to preschool. The Child Care Subsidy (CCS), Australia’s major funding mechanism for ECEC services (and for all ECEC services for children below preschool age), is a market-based model which follows parent demand.