This article is from the Australian Property Journal archive
AUSTRALIA’S competition regulator will begin an inquiry into the costs of childcare in Australia after it was welcomed by Treasurer Jim Chalmers last week.
The inquiry will look at the costs of operating childcare, including employees’ 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.
The Australian Competition and Consumer Commission (ACCC) are expected to begin the inquiry by the start of the New Year. An interim report will be delivered by 30 June, 2023 with the final report delivered by 31 December, 2023.
The direction of the inquiry by the Treasurer falls under Part VIIA of the Competition and Consumer Act. This act enables the ACCC to require information from relevant companies. The ACCC also obtains information voluntarily to inform its inquiries.
A number of factors will be determined by the ACCC into how they impact childcare provider viability, quality and profits while measuring these factors in how prices and costs differ. These include 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.
The Treasurer has also encouraged the ACCC to account for the costs and availability of labour, the use of land and related costs, finance and administrative costs, regulatory compliance costs and the costs of consumables.
Prices in childcare have become a heavy burden for families in recent years with the ACCC in particular investigating prices charged since 2018 and how they have affected changes in childcare policy settings. The inquiry intends to explore how these costs have risen and what factors have determined these changes for consumers. ACCC chair Gina Cass-Gottlieb has spoken about the welcome opportunity it provides the commission to inquire and address the rise in childcare pricing.
“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,” Cass-Gottlieb said.
“Access to affordable childcare that meets the need of growing children and their families is critical for workforce participation and the Australian economy.”
“The 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.”
“We 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.”
