Childcare costs increased in Tasmania in 2020 despite COVID shutdown

The cheapest and most expensive suburbs for childcare in Tasmania have been revealed, with the state’s families struggling with the soaring cost of child care — particularly for one area. SEE THE BREAKDOWN >>

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CHILDCARE costs jumped 3.2 per cent in Tasmania during 2020 despite no fees being charged for three months.

Devonport had the biggest increase in childcare fees the state at 6.5 per cent, followed by Hobart’s south west at 5.7 per cent, and Launceston at 4.1 per cent.

The average hourly cost of centre-based childcare in Tasmania climbed to $9.70 in the December quarter, compared to $9.40 the year before.

Launceston had the most expensive childcare with an average hourly rate of $10.36, followed by Hobart’s north west at $9.95, and Devonport at $9.93.

Generic photo of a childcare worker and children in a daycare centre

Tasmania’s cheapest childcare by the end of 2020 was still at centres in the state’s south east, at $8.59 for the Huon – Bruny Island statistical region, followed by $9.04 in Hobart’s south and west.

CPI increased just 0.9 per cent for the same period.

Federal Opposition early childhood education spokeswoman Amanda Rishworth said Tasmanian families were struggling with the soaring cost of child care, particularly in Devonport which had one of the largest increases in the nation.

“The increase in Tasmania is more than three times inflation, meaning Tasmanian families are paying more out of pocket for child care,” she said.

Ms Rishworth said Labor’s childcare plan, announced in 2020, would make child care cheaper for 97 per cent of families, and would get the ACCC to design a price regulation mechanism to “keep costs down for good”.

Federal education minister Alan Tudge. Picture: Sam Ruttyn

Asked about the fee increase, Federal Education Minister Alan Tudge said: “What matters most to families is their out-of-pocket costs.”

“The average out-of-pocket child care cost for Tasmanian families is just $3.28 per hour, the lowest in the country,” he said.

“A third of Tasmanian parents are paying out-of-pocket expenses of less than $2 per hour, and 85 per cent pay less than $5 per hour.”

Mr Tudge added about 4500 Tasmanian families would have lower costs under the $1.7bn childcare package announced in the budget, which removes the $10,560 cap on the Child Care Subsidy and slashes costs for families with more than one child in care.

Originally published as Childcare costs increased in Tasmania in 2020 despite COVID shutdown