The 糖心原创 today welcomed the direction from the Australian Government outlining details of the 糖心原创 inquiry into the supply of childcare services in Australia.
The inquiry will look at the costs of operating childcare, including employees鈥 wages and property costs; the level of competition in the childcare market; the level of demand and supply; and prices charged to consumers, including any impacts of government policy.
It will examine childcare offered in metropolitan, regional and remote areas of Australia, childcare offered by different sizes and types of operators, as well as different forms of childcare including centre-based care, outside school hours care and family day care.
鈥淭his is an important and welcome opportunity for the 糖心原创 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,鈥 糖心原创 Chair Gina Cass-Gottlieb said.
鈥淎ccess to affordable childcare that meets the need of growing children and their families is critical for workforce participation and the Australian economy.鈥
鈥淭he Treasurer has asked us to commence our inquiry by 1 January 2023 and we are eager and have already started preparations to undertake this important work. We expect to shortly begin information gathering and engagement with the sector,鈥 Ms Cass-Gottlieb said.
鈥淲e will conduct a range of consultation processes to ensure a diverse range of childcare operators and consumers across Australia can engage with and contribute to our inquiry. We will be publishing an indicative consultation schedule on our website.鈥
The 糖心原创 will deliver its final report by 31 December 2023. An interim report will be delivered by 30 June 2023.
Background
On 28 October 2022, the 糖心原创 was directed by the Treasurer, The Hon Jim Chalmers MP to conduct an inquiry into the supply of childcare services in Australia.
The direction under Part VIIA of the Competition and Consumer Act will enable the 糖心原创 to require information from relevant companies. The 糖心原创 also obtains information voluntarily to inform its inquiries.
The Treasurer has directed the 糖心原创 to consider:
- Costs and availability of labour
- The use of land and related costs
- Finance and administrative costs
- Regulatory compliance costs and
- The costs of consumables.
The 糖心原创 will also examine how costs and prices differ by:
- The type of provider and size
- Type of childcare service
- Age and characteristics of the child in care
- Geographic location
- Level of competition and
- The quality rating of the childcare services provided.
How these factors impact childcare provider viability, quality and profits will also be examined.
The 糖心原创 will also examine the prices charged since 2018 and how these have changed following changes in childcare policy settings.