Affordability Funding Models for Early Childhood Services

Abstract

This paper presents a model of the approaches open to government to ensure that early childhood services are affordable to families. We derived the model from a comparative literature review of affordability approaches taken by government, both in Australia and internationally. The model adds significantly to the literature by proposing a means to understand and assess the numerous options for affordability funding. The model suggests that the options fall into only three basic approaches: operational funding, fee subsidies and tax relief. Application of this simple model helps clarify the costs and benefits of particular choices within these approaches. We predict that the choices affect cost to government, affordability to families, and participation by children in early childhood services.