The Productivity Commission is the Australian Government’s independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians.
In February 2023, the Federal Government directed the Productivity Commission to investigate the early education and care sector. The final report was release in September 2024 and cites the many benefits of early education from rigorous evidence. The following outcomes were found to be supported:
- Early cognitive skills, test scores, school readiness, An improvement over various developmental and cognitive domains in early childhood has been demonstrated by extensive credible and consistent studies.
- Educational attainment, with reductions in grade repetition, increases in high school graduation and in university attendance.
- Labour market outcomes find a persistent increase in employment and earnings.
- Physical and mental health outcomes improve and persist well into adulthood.
- Equity outcomes are improved, particularly for children experiencing disadvantage.
