Date: 30 January 2024

The Australian Competition and Consumer Commission (ACCC) is advocating for significant governmental intervention in the childcare sector. This recommendation comes after a thorough investigation into the affordability and accessibility of childcare services in Australia.

The ACCC’s inquiry revealed that the current childcare market fails to provide affordable and accessible services to many families. A key finding is that increased childcare subsidies have been offset by rising fees, negating financial relief for families. Particularly affected are households in remote, less advantaged areas, and those with children who have special needs or come from diverse backgrounds.

The ACCC suggests simplifying the childcare system and revising the activity test, which determines the extent of subsidized care based on parental work, volunteer, or study hours. The proposal also includes considering a direct entitlement of care days, regardless of parental activity.

The federal government is expected to address these recommendations in conjunction with the Productivity Commission’s report on childcare, due by June 30.

• ACCC calls for government intervention in childcare to improve access for all families.
• Subsidy increases have been counteracted by rising fees.
• Recommendations include simplifying the system and revising the activity test.
• Federal government’s response anticipated in alignment with the Productivity Commission’s report.

The ACCC’s call for reform in the childcare sector is a critical step towards ensuring equitable access to childcare services across Australia. The proposed changes aim to make childcare more affordable and accessible, particularly for families in challenging circumstances. The federal government’s forthcoming response will be pivotal in shaping the future of childcare in Australia.

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