October budget to fund childcare price inquiry

The government announced it will be investing nearly $11 million in the October budget for a 12-month inquiry into the rising cost of childcare in Australia starting in early 2023.

Childcare costs increased by 41 per cent over the past eight years and were identified as one of the major obstacles to women returning to the workforce.

The ACCC inquiry will examine the driving factors behind rising childcare costs and out-of-pocket expenses and will make recommendations to the government on ways to ease pressure on families.

Additionally, the Minister for Education Jason Clare will next week introduce legislation that will make childcare more affordable for 96 per cent of Australian families with children in care.

Treasurer Jim Chalmers said that for many families, the cost of childcare is an incredible burden and the inquiry is an important part of the government’s plan to help families cope with rising cost-of-living pressures.

Mr Clare said presently about 60 per cent of mothers of children under six who work, do part-time hours.

“A lot of Australians would want to work more, but if they did all of that pay would be gobbled up by the childcare bill. It means it’s not worth it,” he said.

“Legislation I will introduce next week will cut out-of-pockets costs for 96 per cent of families will children in care. The ACCC inquiry is another way the Albanese Government is helping to drive down out-of-pocket childcare costs for families.”