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
27 August 2026
The latest ABS Consumer Price Index shows childcare costs have jumped 7.3 per cent in the past 12 months, more than twice the rate of inflation, adding yet another burden to families already struggling with Labor’s cost-of-living crisis.
The latest increase comes as families continue to face rising costs across essential household expenses, including electricity, housing, education, insurance, healthcare and groceries.
“Labor promised cheaper childcare. Instead, families are watching fees consistently rise at more than twice the rate of inflation.”
Childcare fees have risen by 28 per cent since Labor came to office, with an average full-time childcare place now costing more than $36,000 a year before subsidies, comparable to annual tuition at an elite private school.
At the same time, Commonwealth spending on the Child Care Subsidy is projected to exceed $20 billion a year by 2029-30.
“Parents are paying more, taxpayers are paying more and the system still does not provide the flexibility and choice many families need.”
Further, only around half of Australian children use CCS approved care, highlighting that Labor’s one-size-fits-all approach does not meet the needs of every family.
“A childcare policy that only reaches around half of Australian children cannot be called a universal solution.”
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]