Project overview

Industry

Childcare

Type

Inquiry

Status

Ongoing

On 28 October, the Treasurer directed the ACCC to conduct an inquiry into the market for the supply of childcare services.

The inquiry was to begin by 1 January 2023 and provide:

  • a first interim report by no later than 30 June 2023
  • a second interim report by no later than 30 September 2023
  • a final report to the Treasurer by 31 December 2023.

The Inquiry has now concluded. The ACCC released its final report for the inquiry into childcare services on 29 January 2024.

The final report contains the ACCC’s findings and recommendations related to the impact of the Cheaper Child Care reforms, prices, costs, profits, competition within childcare markets and subsidies and price regulation models.

Scope of inquiry

The inquiry examined and considered matters including:

  • costs and availability of labour
  • the use of land and related costs
  • finance and administrative costs
  • regulatory compliance costs
  • the costs of consumables
  • the prices charged since 2018 and how these have changed following changes in childcare policy settings.

The ACCC examined how costs and prices differ by:

  • type of provider and size
  • type of childcare service
  • age and characteristics of the child in care
  • geographic location
  • level of competition
  • the quality rating of the childcare services provided.

How these factors impact childcare provider viability, quality and profits was also examined.

Providing information to the inquiry

The ACCC carried out a wide range of consultation and information gathering activities as part of the childcare inquiry. 

We identified childcare providers in metropolitan, regional and remote areas of Australia to participate in formal information gathering processes

We also ran roundtables with a broad range of stakeholders, including:

  • families and those who care for children
  • childcare educators and workforce participants
  • Aboriginal and/or Torres Strait Islander peoples,
  • people from culturally and linguistically diverse (CALD) communities
  • people with children who have a disability or complex need.

We also used different ways to gather information from stakeholders. This included a survey that was open to all who care for children.

Childcare Inquiry activities by month.
Month Activity

January 2023

 ACCC will contact large childcare providers and consult on the ACCC’s proposed compulsory information requests.
February 2023

ACCC will issue compulsory information requests to large childcare providers.

ACCC will engage with selected medium and small childcare providers and issue voluntary information requests.
March 2023 ACCC staff will visit selected childcare providers.
April 2023

Responses due for the compulsory information requests issued to large childcare providers.

ACCC staff will visit selected childcare providers.

Web survey opens to everyone with childcaring responsibilities.
May 2023

ACCC staff will visit selected childcare providers.
June 2023

First interim report provided to the Treasurer by 30 June 2023.
July 2023

ACCC will issue additional information requests to selected providers seeking price and costs information after 1 July 2023.
August 2023

Responses to additional information requests due.

ACCC will host roundtable discussions with invited stakeholders.
September 2023

Second interim report will be provided to the Treasurer by 30 September 2023, identifying potential draft recommendations and/or draft findings and seek submissions in response.

ACCC will host roundtable discussions with invited stakeholders.
October 2023 Public submissions on the consultation paper identifying potential draft recommendations and/or draft findings close.
November 2023 Further stakeholder meetings if required to clarify submissions.
December 2023 Final Report provided to the Treasurer by 31 December 2023.

Timeline