Federal government – contributes to the funding of physical infrastructure

The federal government makes no contribution to full-day
compulsory schooling. The long-term benefits of investment in childcare and full-day
schooling are likely to accrue nation-wide, generating positive economic externalities for
other jurisdictions. Therefore there is a case for the federal government to play a strong
role in funding such services.

Constitutional barriers prevent federal co-funding for
full-day primary education. In view of the large benefits of full-day primary schooling,
there is a case for reviewing these constitutional barriers. There also is a case for
disbursing federal subsidies for childcare in a way which takes into account parental
preferences. A scheme of vouchers, linked to a nation-wide accreditation system, could
ensure that supply adjusts better to parental demand.