Senator Matt O’Sullivan
Shadow Minister for Choice in Childcare and Early Learning
Shadow Minister for Child Protection and the Prevention of Family Violence
Deputy Manager of Opposition Business
Senator for Western Australia
Media Release
28 October 2026
The latest ABS Consumer Price Index figures show childcare costs have risen 4.4 per cent over the past 12 months, piling pressure on Australian families already struggling with rising interest rates and the cost of everyday essentials.
Shadow Minister for Choice in Childcare and Early Learning, Senator Matt O’Sullivan, said Labor had promised cheaper childcare but families were still facing rising fees.
“Families are paying more for childcare while fuel, electricity, housing and groceries continue to bite into household budgets.”
“In just four years, childcare fees have risen by almost 30 per cent, with a full-time place now costing more than $36,000 a year before subsidies.”
Meanwhile, Commonwealth spending on childcare is expected to reach $20 billion next year (in 2027-28 taking account of the childcare subsidy and worker retention payments).
With headline inflation rising to 4.3 per cent, pressure is also mounting on the Reserve Bank to consider another interest rate rise at its next meeting on 3 November.
“Parents are paying more, taxpayers are paying more, yet many families still cannot access the flexibility and choice they need.”
Senator O’Sullivan said the fact only around half of Australian children use Child Care Subsidy-approved care highlighted the need for a more flexible approach that better accommodates the needs of busy modern families.
“Families need a childcare system that puts children first, supports quality care and provides genuine choice and flexibility, not a forced one-size-fits-all approach.”
The Coalition will continue to hold the Government to account, and advocate for a childcare system that puts children’s safety first, listens to parents and gives every family access to quality care, genuine choice and flexibility.
[ENDS]