Model specification document: options to deliver three-year-old preschool - Royal Commission into Early Childhood Education

With this in mind, the four scenarios represent the spectrum of alternative options for increasing the capacity of the sector to enable the universal provision of funded three-year-old preschool. [...] 11 3 Modelling framework and approach This section sets out the components of the modelling approach, including the assumptions which drive demand estimates across regions, the approach to modelling the supply responses of each service type under the scenarios, and the basis for understanding the cost and workforce requirements of each option. [...] 3.2 Supply responses and policy scenarios The process through which supply is assumed to respond to meet increased demand is a function of both policy rules – relating to the design of the scenarios – and the capacity and expansion ability of the various segments of the sector. [...] This value is applied to limit the upper threshold of unused capacity that could be offered to three-year- old children.18 17 The NQF and accompanying legislation set limits for the number of children in early childhood education and care settings based on the physical space and configurations of a service. [...] While the provider survey results (see Section 4.2) provide a point of reference for the current sentiment of the sector and the potential barriers to transition, the model assumption can be adjusted to reflect that all LDC providers are understood to eventually be able to convert their programs, with sufficient lead time, incentives and access to relevant workforce.