There has been an increased level of policy discussion and advocacy across the early childhood sector this month, particularly following the release of state and federal budgets, uncertainty around the Worker Retention Payment, and the announcement of an in-principle agreement for the Victorian Early Childhood Teachers and Educators Agreement (VECTEA). We welcome the investment in early childhood education and care, and we remain supportive of the Victorian Government reforms and its recognition of the vital role high-quality early learning plays in children’s development, wellbeing and long-term outcomes.
The Victorian Budget for 2026/27 includes almost $500 million to support the continued rollout of new and expanded early learning services across the state. This includes funding to deliver up to 22 kindergartens on school sites, five Early Learning Victoria centres, and grants for 27 new and expanded kindergartens.
As investment continues to roll out, the sustainability of the workforce underpinning these services remains of critical importance. The ability to attract and retain qualified early childhood teachers and educators continues to be one of the greatest challenges facing providers across the sector. Workforce retention is vital for continuity and is directly linked to improving quality for children and families.
Early Learning Association Australia (ELAA) and the Australian Education Union (AEU) have been in discussions to renegotiate the Victorian Early Childhood Teachers and Educators Agreement over the past two years. Any cost implications of improved wages and conditions in a new EBA need to be met by increased kindergarten funding from the Victorian government, so it was pleasing to hear on Friday the 15th of May, an in-principle agreement was reached between ELAA, the AEU and the Victorian Government. The new agreement provides additional leave entitlements and a significant pay rise over the next four years, resulting in pay parity with primary school teachers over the life of the agreement. We know that wages and conditions support greater sector stability and retention of a highly-skilled workforce to engage in the powerful work of educating young children. Gowrie remains committed to advocating for equitable wages and conditions for our educators and teachers and working with unions, government and peak bodies to ensure appropriate funding for the sector to achieve this aim.
Despite the good news for people employed under the VECTEA, we remain concerned about ongoing uncertainty surrounding the Commonwealth’s Worker Retention Payment. These additional wages have been critical in supporting improved pay and conditions across the sector. Without long-term certainty, there is a risk of educators choosing to leave early childhood settings for better-remunerated roles in other sectors. The growing frustration being expressed across the workforce, including reports of educators considering or participating in industrial action, aligns with what our educators and ancillary staff at Gowrie have told us consistently—that fair pay and conditions are essential to workforce retention and wellbeing. Educators consistently demonstrate extraordinary professionalism and commitment to children and families, often while navigating increasing complexity and pressure within their roles. The sector requires stable, sustainable funding arrangements that genuinely recognise the value of this work and provide confidence for services, educators and families alike.
Alongside these workforce matters, we remain concerned about the continued emphasis on compliance and supervision, rather than an emphasis on improving interactions and the quality of the learning activities we offer to children and the importance of building strong respectful relationships with children and families.
At Gowrie Victoria, we remain committed to advocating for a high-quality early learning sector shaped by what children, families and educators need most. Sustainable reform requires long-term investment in workforce capability, professional recognition and quality service delivery. Children’s safety, wellbeing and learning must remain at the centre of government policy and investment decisions, supported through stronger partnerships between providers and governments. The decisions being made today will directly shape the future experiences and outcomes of children across Victoria.
