Every child in Australia should have access to at least three days a week of high-quality early childhood education and care, says the Productivity Commission.

The final inquiry report into universal early childhood education and care – which was released publicly on Wednesday – recommends a system “that is accessible, within the means of all families, equitable and inclusive for all children”.

Informed by engagement with hundreds of people from the early childhood education and care sector, academics, advocacy groups and the broader community, the report says the federal government should first act to ensure that cost is no barrier to access for children from low-income families.

“Children experiencing vulnerability and disadvantage benefit the most from quality early childhood education and care, but they are currently the least likely to attend,” said associate commissioner Deborah Brennan, who led the inquiry.

The report’s authors recommend the abolishment of the activity test – which links the amount that a family works, studies or volunteers with the amount of childcare subsidy they receive. “A child’s entitlement to at least three days of ECEC a week should not depend on how much their parents work,” Brennan said.

As well, the report recommends that – for families earning up to $80,000 a year – the childhood subsidy should be increased to 100% of the hourly rate cap.

The system can only be universal if every child is welcome.

Martin Stokie

The report – which was handed to the Australian Government in June – also suggests measures to support the ECEC workforce by offering improved professional development and better career pathways for those already in the sector.

“We will not make any progress towards a universal system without addressing the sector’s workforce challenges. Improving pay and conditions is critical but more can be done to improve career and qualification pathways for ECEC professions,” commissioner Martin Stokie said.

Achieving universal childcare will also require government to invest in establishing ECEC services in communities experiencing disadvantage and regional and remote communities.

“Some areas of Australia have few or no early childhood education and care services. More funding will be needed to address these persistent service gaps,” said commissioner Lisa Gropp.

Commissioner Stokie added: “The system can only be universal if every child is welcome. The Australian Government should increase funding to enable the inclusion of all children – regardless of their ability or cultural background.”

In response, national peak body the SNAICC – which represents Aboriginal and Torres Strait Islander children, families, and communities – said the reforms, if backed by government, will be a “gamechanger”.

“The report recommendations, if put in place, could chart a very different course for many of our children and families,” CEO Catherine Liddle said.

“The Productivity Commission report supports what SNAICC has long advocated – that Aboriginal community-controlled services provide the best outcomes for our children so they are developmentally ready for school and enjoy better outcomes in later life.”

“All we need now is the will of our political leaders to just do it,” she added.

Advocacy group The Parenthood also praised the “landmark report” and supported its findings. “The report recognises what parents know too well: that affordability and inclusivity are major issues when it comes to early learning and care,” CEO Georgie Dent said. “This report makes clear wholesale reform is needed.”

The federal government will continue to consider the report’s recommendations and consult with the ECEC sector further before announcing plans for how universal care would be implemented.

The only way to realise the reforms, Dent said, “is by legislating every child’s right to early education and making sure it is genuinely affordable”.