Childcare costs subject of new ACCC inquiry
2 November 2022 at 4:50 pm
The competition regulator has been directed by the government to look at the supply of childcare services in Australia.
The Australian Competition and Consumer Commission (ACCC) will commence an inquiry into the supply of childcare services in Australia by the start of next year.
The announcement builds upon initial direction from treasurer Jim Chalmers in October, who has since provided greater guidance to consider the costs of operating childcare and how these factors impact provider viability, quality and profits.
This includes employees’ wages and property costs, the level of competition in the childcare market, the prices currently charged to consumers, including any impacts of government policy, and the level of demand and supply, among other considerations.
The ACCC will also examine the prices charged since 2018 and how these have changed following changes in childcare policy settings.
“This is an important and welcome opportunity for the ACCC to explore, analyse and report on the factors that drive prices in the childcare sector. We look forward to consulting widely in this inquiry with a broad range of childcare providers as well as parents and carers,” said ACCC chair Gina Cass-Gottlieb.
“Access to affordable childcare that meets the need of growing children and their families is critical for workforce participation and the Australian economy.”
The inquiry will examine childcare offered across Australia, including in metropolitan, regional and remote locations, as well as different sizes and types of operators and various forms of childcare such as centre-based care, outside school hours care and family day care. It will also conduct a range of consultation processes to ensure a diverse range of operators and consumers across the country can contribute.
Preparations are already underway, with the ACCC expected to begin information gathering and engagement with the sector shortly.
The ACCC will deliver its final report by the end of next year, with an interim report scheduled for 30 June 2023.
