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
30 September 2026
New inflation figures released today show Australian families continue to face rising childcare costs despite billions of dollars in government subsidies.
The latest ABS Consumer Price Index shows out-of-pocket childcare costs rose 3.5 per cent over the past 12 months, including a further 0.6 per cent increase in the latest month, while headline inflation climbing to 4 per cent.
Families are also facing significant increases across other household essentials, with housing, electricity, transport and insurance. Rising childcare costs are yet another hit to family budgets after Labor promised Australians cheaper childcare.
Since Labor came to office childcare fees have risen by around 29 per cent while commonwealth spending on the Child Care Subsidy is projected to exceed $20 billion a year by 2029-30.
Despite taxpayers spending billions more on the childcare system, parents are still paying more out of pocket, without seeing greater choice or flexibility in the type of care available for their children.
“Parents are paying more, taxpayers are paying more and the system still does not provide the choice and flexibility families need to manage their busy schedules or get ahead.”
“More government spending is clearly not the answer to all of Australia’s childcare challenges, but it’s become very clear that’s all families can expect from Labor.”
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.
[ENDS]