Comparing ECEC and Aged Care Funding

dandolo was commissioned by an early childhood peak body to consider the potential risks, opportunities and key considerations for applying a 'supply-side' funding model to the ECEC sector - via an analysis and comparison of the 'supply-side' aged care funding model and the 'demand-side' Child Care Subsidy (CCS). The project involved a deep dive into the design, mechanics and operation of the new and old residential aged care funding model. It included an analysis of the aged care Royal Commission, Taskforce and other key sector reports to understand the risks, limitations, design considerations and ongoing challenges, interviews with key aged care sector insiders, and a comparison of the design of the aged care and ECEC funding models and how they each navigate trade-offs around delivering value for money, efficient administration, accountability and market health. dandolo's report provided insight into the difference between supply- and demand-side funding model, the key challenges in the aged care sector and outlined implications for applying the model to ECEC. The report contributed to conversations about future directions for policy change in the sector.