The ACCC Childcare Inquiry-final report December 2023 (released on January 29, 2024) provides insights into the childcare market and investment landscape. Several key findings from the report are summarised below:
- Childcare services in Australia offer educational, care, and developmental assistance to a diverse range of children and households situated in various locations and circumstances.
- Childcare markets fail to ensure accessibility and affordability for all children and households throughout Australia.
- The demand for childcare from parents and guardians is shaped by multifaceted factors. In instances where multiple childcare services are available, prevailing market prices are considered, but quality is a key consideration.
- Providers’ decisions regarding supply are influenced by expectations of viability, strongly tied to the demand for childcare in a given area. When assessing current or expected future demand, providers need to take into consideration the demographics of an area, often linked to socio-economic advantages, as well as the existing supply.
These findings suggest that the current ‘one size fits all approach’ will leave some communities under-served, unserved or without adequate and appropriate access to childcare services. Childcare providers play an important role in bridging the gaps in accessibility, affordability, and quality of existing childcare centres.