Latest Consumer Price Index data released today by the Australian Bureau of Statistics indicates childcare costs have risen by 7.6 per cent over the past twelve months, twice the rate of headline inflation. A further blow to Australian families already experiencing the worst collapse in living standards in the developed world.
While the Albanese Government claims it is making life more affordable, this 7.6 per cent increase in childcare costs is more strain on household budgets already under significant pressure.
Families face soaring costs across the board, with electricity up 22.4 per cent, housing 6.8 per cent, insurance 4.9 per cent, education 4.8 per cent, healthcare 3.7 per cent, and groceries 3.3 per cent.
Childcare fees have risen by 28 per cent since Labor came to office, and the average full-time childcare place now costs more than $36,000 a year before subsidies – comparable to annual tuition at an elite private school.
The Coalition recognises that for many households, childcare is essential. It enables parents to participate in the workforce, pay the mortgage, and put food on the table.
Despite record taxpayer spending, the system is still failing to meet the needs of many families. Only around half of young Australian children use CCS-approved care, demonstrating Labor’s one-size-fits-all model is not working for everyone.
Aside from utilisation rates, childcare subsidies are projected to cost taxpayers more than $20 billion annually by 2029–30, leaving future governments to fund an increasingly expensive system that still fails to provide genuine choice for all families.
“Labor promised cheaper childcare, but today’s ABS figures tell a very different story. Families are paying more, taxpayers are paying more, and many parents still don’t have access to the type of care that best suits their circumstances.”
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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