The Council of Australian Governments released the National Early Childhood Development Strategy, Investing in the Early Years in July 2009. The ECD Outcomes Framework in the strategy focuses on what Australia needs to achieve to fulfil the vision that 'by 2020 all children have the best start in life to create a better future for themselves and for the nation'. The early years of a child's life lays the foundation for future health, development, learning and wellbeing. This report outlines the process of developing an indicator-based reporting framework for early childhood development, and establishes a recommended high-level set of indicators to measure progress against the ECD Outcomes Framework in the strategy. It presents the results of a review of existing national and international frameworks related to early childhood development; research evidence on aspects of early childhood development most strongly associated with child health, development and wellbeing outcomes; and outlines the selection process for identifying indicators.