A plan to transform Australia's childcare has been revealed. These are the main points to remember

All children should have access to high-quality early childhood education services at least three days a week, and to achieve this, the federal government must address affordability challenges, the Productivity Commission found in a final report released Wednesday.

What are the main recommendations?

The report recommends that the government fully subsidize child care for families with incomes up to $80,000, which affects about one in three families with children under 12.

It also suggests that families earning less than $140,000 and having multiple children under the age of five should also have their child care costs fully covered.

Childcare subsidy activity tests – which determine child benefit based on parents’ paid or unpaid work – should also be scrapped completely, as children’s participation in early childhood education should not depend on their parents, according to the report.

If these changes are implemented, at least half of Australian families would benefit and preschool attendance would increase by 10 percent thanks to better participation by low- and middle-income families.

Early Childhood Education Minister Anne Aly said the report would help build a system Australian children deserve.

“All children should be able to access the transformational benefits of quality early childhood education and care, regardless of their background or postcode,” she said.

Addressing labor shortages

To improve the availability of childcare, the Productivity Commission also recommends that the government address labor shortages in the sector through accelerated qualifications pathways.

The report comes after the federal government on Thursday introduced legislation to increase child care workers’ salaries by 15 per cent over two years in a bid to attract more people to the sector.

Prime Minister Anthony Albanese previously said the wage increase was a first step towards an eventual universal childcare system.

Greater daycare attendance has allowed more parents to re-enter the workforce, and state governments should also provide after-school care for children in public elementary schools, the report said.

What happens next?

The federal government will review the report and consult with the child care sector before announcing plans for how universal child care would be implemented.

The commission recommends the creation of an independent body to support, advise and monitor governments’ progress.