Childcare fees across Australia have surged over the past decade, with costs rising by more than 60 per cent from 2014 to 2024, according to data from the Department of Education.
The average cost of childcare has increased from $7.85 per hour in December 2014 to $13.15 per hour in December 2024, placing a significant financial strain on Australian parents and families.
The cost of childcare varies across the country, with the Australian Capital Territory reporting the highest price at $15.30 per hour, according to the Department of Education December 2024 Data. Western Australia was not far behind reporting $14.00 per hour, followed by NSW with $13.90. The national average stands at $13.75, with the ACT, NSW, WA and VIC consistently exceeding this figure.
According to a report by the Australian Competition and Consumer Commission (ACCC), finalised in January 2024, childcare costs outpaced both inflation and wage growth over the four years preceding the report. Despite government subsidies offsetting more than half of the average childcare fees during this period, out-of-pocket expenses for families has still increased significantly.
The Department of Education Minister for Early Childhood Education, Dr Anne Aly said in a media statement that the Government is working on their Cheaper Child Care reforms to provide cost-of-living relief to struggling families.
“Accessible, affordable and inclusive early learning is critical for ensuring our children get the best start in life and are school ready,” Dr Aly said.
The ACCC has also outlined in findings from its Parents and Guardians Survey that on top of increasingly unaffordable fees, many families are facing mounting challenges in accessing childcare in the first place.
The majority of parents reported joining childcare waitlists more than a year in advance, but despite this, many were still unable to secure a place when needed, leading to delays in returning to work or study and in some cases, a reduction in working hours.
Illawarra mother Hollie Peters said that she and her partner enrolled her now 6-month-old into various childcare centres as soon as they found out that they were pregnant.
“We said we are flexible with any days that work for them, and we are still yet to receive a spot for Luca,” Ms Peters said.
“We were told by one of the centres that there is still an additional 400 kids on the waitlist that couldn’t get in either, this made us feel very stressed and disheartened.
“I have sacrificed working more and growing my business and career I worked hard at school and University to acquire due to the inability to access good quality daycare for my son.”
AUSTRALIAN CHILDCARE INFOGRAPHIC by Anna Wright
The findings from the ACCC, along with data from the Department of Education, highlight the growing pressure on Australia’s childcare system, both in terms of affordability and accessibility.
Additional reporting by Layney Britton and Max Arnold
Feature image source: https://www.eim.edu.au/why-choose-childcare-as-a-career-how-to-start/