This report analyses the trends in Australia's investment in Early Childhood Education and Care since 2008, and related policy reform. Government expenditure on early childhood education and care (ECEC) has grown substantially since 2008, and in 2018 was approximately $9.2 billion. This is an increase in real terms since 2008 of almost 140%. The overall increase in government expenditure is due in part to an increase in participation across the ECEC sector. It may also be related to investments to lift the quality of ECEC services, to improve children’s learning and development. In 2018, government investment in ECEC fell for the first time in at least a decade. Financial figures for this report are drawn from data published by the Productivity Commission and unpublished data provided to the Mitchell Institute by the Australian Bureau of Statistics.