This discussion paper is an invitation to early childhood stakeholders to engage in the next steps of the Productivity Commission’s inquiry into early childhood education and care (ECEC), seeking to influence the Productivity Commission and the Commonwealth Government to develop and implement a funding model that can support a high-quality, truly universal ECEC system and better serve children, families and the sector.

In its draft report, the Productivity Commission has invited people to consider and comment on the design and features of any future funding model. An important opportunity presents itself for the sector to consider different funding types, to deepen understanding of the different types of funding models, their strengths and weaknesses and if possible coalesce on a set of underpinning funding design principles. Discussions from the consultation process on this paper have been synthesised and summarised at pages 17-21. We encourage stakeholders to reflect on the critique of each funding model and to use this work as a resource in their own considerations and responses to the Productivity Commission inquiry