The Albanese Government introduced legislation to Parliament today (12 August 2026) that will permanently lock in the 15 per cent Worker Retention Payment for early childhood education and care (ECEC) staff, according to a joint media release from Education Minister Jason Clare, Minister for Employment and Workplace Relations Amanda Rishworth, and Minister for Early Childhood Education Jess Walsh.
The bill amends the Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024 to direct a further $3.6 billion toward the pay rise, while embedding a requirement that services meet the National Quality Standard (NQS) — the national benchmark for education and care quality — to remain eligible for the payment.
Under the existing scheme, the 15 per cent pay rise translates to $255 more per week for a typical full-time educator and $410 more per week for early childhood teachers compared with pre-program rates, the release states. More than 80 per cent of eligible services are currently receiving the payment.
The legislation will also formalise the link between the funding and fee restraint for families. Services receiving the payment must limit increases passed on to parents, and the government projects average families will save around $1,500 over the next two years as a result.
The most significant structural change is the shift from encouragement to enforcement on safety compliance. From July 2027, any service not meeting the NQS on child health and safety measures risks having its Worker Retention Payment funding cut or suspended. The government reports 95 per cent of services currently meet the safety standard — the highest level recorded to date.
"Nothing is more important than the safety of our children," Minister Clare said. "This will help to make sure safety and quality in early education is what parents expect and what our children deserve."
The government points to workforce data as evidence the scheme is working. Since the payment began, the sector has added 20,000 more early educators and job vacancies have fallen by more than 31 per cent.
At Goodstart Early Learning – described by the government as Australia's largest child care provider – agency staff usage reportedly dropped 69 per cent in the program's first year, a result that echoes what other major providers have reported about retention gains tied to wage support</a>.
Minister Rishworth framed the increase as central to the government's broader workforce strategy. "Early childhood educators have one of the most important jobs in Australia and their hard and highly skilled work deserves to be properly valued," she said.
"Labor's backing for wage rises means early childhood teachers are now earning $410 more per week, compared to December 2024 when the government first implemented the pay rise."
Minister Walsh, meanwhile, linked the funding directly to workforce stability. "It's also providing more certainty and stability for the children in their care," she said. "It is helping build and retain the stable, dedicated workforce that children deserve."