ACTU President Sharan Burrow said:

"Today's announcement by the PM contains some welcome but modest enhancements to the Government's previous family and early childhood programs but fails to offer anything of real significance."

"In particular the Prime Minister has failed to act on the looming crisis in childcare."

"ABS data shows that families have suffered a 30% rise in childcare costs over the past two years and yet the PM has ignored this problem."

"The PM has also failed to act on the major national shortage of childcare workers that is having such a serious negative effect on the quality of care that children are getting."

"These problems include:

• An over-reliance on poorly paid junior staff. Junior childcare workers - some as young as 16 and 17 years old - are paid as little as $6 an hour and in some States such as Queensland, it is estimated that up to one in four child care workers are juniors."

• An inability to attract and retain staff due to very low wages: In a number of States adult childcare workers receive no more than the minimum wage of $11.80 an hour. This is less than $450 a week and less than $25,000 a year. Many childcare staff are leaving the profession because their job prospects are so limited and yet the continuity of staff is crucial to the relationship needs of young children.

• Safety and quality is being compromised: Staff shortages are so bad that there are not enough qualified people to adequately supervise children and childcare centres around Australia are unable to meet their staffing license requirements.

"A recent major childcare think tank warned that 'the child care system as we know it will collapse' unless there is Government action to improve the pay and conditions of child care workers and at the same time ensure childcare is affordable for families."

"Childcare is a 'BBQ stopper' in its own right and yet the Prime Minister has today missed another opportunity to deal with this crucial part of the work and family equation."

"The ACTU is supporting five separate union claims that are currently underway across the nation to lift the pay and conditions of Australia's estimated 76,000 children's services staff."