New ABS Consumer Price Index data shows childcare costs have risen 9.4 per cent over the past 12 months. That is more than double the rate of inflation and another blow to family budgets already stretched under Labor’s cost-of-living crisis.
The Albanese Government has quietly raised the fee increase cap from 4.2 to 5.8 per cent under its extended Worker Retention Payment, locking in higher costs for families.
The latest data shows Labor’s promise of cheaper childcare has failed. Prior to last week’s announcement, almost 40 per cent of services were already charging above the hourly rate cap to manage rising costs, leaving families to pay the difference.
Since Labor took office, childcare fees have risen around 27 per cent. The average full-time place now costs $36,000 a year before subsidies are applied.
New research from the Australian Institute of Family Studies shows that while 71 per cent of young Australians want children, record-low fertility rates and Labor’s cost-of-living crisis are making that dream harder to reach.
The skyrocketing costs for families come in spite of Labor doubling the childcare budget from $9.8 billion in the 2021-22 year to over $20 billion in 2026-27. Childcare has replaced aged care as a top-five pressure on the budget.
Senator Matt O’Sullivan, Shadow Minister for Choice in Childcare and Early Learning said Labor’s record speaks for itself. “Labor promised cheaper childcare, yet families are paying 27 per cent more. They’ve raised the fee cap, costs are still soaring, and there’s no end in sight. This is another Labor lie.”
The Coalition believes every family deserves quality care, genuine choice and real flexibility. We will continue working toward a childcare ecosystem that supports families, rather than imposing a rigid, one-size-fits-all approach.
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