Market forces in childcare have failed families: ACCC

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Childcare in Australia is less affordable than almost all other comparable countries and despite government contributions being almost double the OECD average.

The federal government’s chief lever to put downward pressure on childcare fees is ineffective and does little to remediate Australia’s position as one of theAn interim report from the Australian Competition and Consumer Commission found that childcare in Australia is less affordable than almost all other comparable countries and despite government contributions being almost double the OECD average.

“However, our analysis indicates that the complexity of the hourly rate cap , along with the unique characteristics of childcare markets, are limiting the effectiveness of the hourly rate cap as a price signal and constraint on prices.” “This report will inform the in-depth Productivity Commission review, helping us chart the course to universal access to early childhood education and care,” Dr Aly said.Advertisement

Over the same period, nominal gross fees increased by 20.6 per cent. This compared with the OECD average of 9.5 per cent.

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Government urged to intervene in childcare market to guarantee remote accessAustralian 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.
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