Latest Consumer Price Index data released today by the Australian Bureau of Statistics indicates childcare costs have risen by 9.1 per cent over the past year, nearly double the rate of inflation. This is yet another blow for Australian families already grappling with Labor’s cost-of-living crisis.
Labor’s latest Budget was not only full of broken promises, it also quietly ends childcare worker retention payments beyond 2026–27. Without this support, childcare centres will be forced to absorb rising wage costs, with families inevitably paying more.
For many households, childcare is essential. It enables parents to stay in the workforce, pay the mortgage, and put food on the table. Price increases at nearly twice the rate of inflation only make this harder.
Fees have risen by 27% since Labor came to power. Almost 40% of services now charge above the hourly rate cap as they struggle to keep up with soaring costs. When services charge above the rate cap, families pay in full.
The average full time childcare place is now $36,000 a year (before subsidy) – comparable to elite private high school fees.
“Labor promised cheaper childcare, but Australian families will continue paying more.”
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.