Government urged to intervene in childcare market to guarantee remote access

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Australian parents facing crippling cost-of-living pressures are paying almost twice the OECD average for child care, an ACCC inquiry finds, with the system also failing to deliver for low-income families and those in the bush.

abc.net.au/news/government-urged-to-consider-threat-limit-childcare-fees-rises/102920212Australian parents facing crippling cost-of-living pressures are paying almost twice the OECD average for child care, an inquiry has found, with the system also failing to deliver for low-income families and those in the bush.Government spend on parental subsidies is expected to reach $12.

"As part of a government's market stewardship role, a strong price monitoring role supported by a credible threat of further intervention, could support the indirect price discipline of the hourly rate cap," the report found. It found childcare operators target the most profitable areas within the wealthiest suburbs in Australia’s biggest cities, meaning privileged areas are most likely to have to places and competition.

So great is the need for reform that the ACCC recommends government go back to first principles and consider what it wants to achieve with a childcare spend that's demanding ever more of the budget.It found Australia's Child Care Subsidy system is disproportionately impacting low-income earners by penalising parents not in full time work.depending on how many hours a week they are engaged in study or work.

 

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