QLD families cop highest childcare fee increase in the country

Childcare fees in Queensland have skyrocketed 25 per cent in the past five years and prices are set to rise again from next week, even as increased subsidies are due to start.

Childcare fees in Queensland have skyrocketed 25 per cent in the past five years, a higher increase than any other state or territory, a new report has found.

The average daily for the state has climbed to just under $115 – while prices are set to rise again at many centres from next week even as increased subsidies are due to start.

But price is not the number one driving factor behind parents’ choice of where to send their children, with location considered the most important, followed by availability, safety and quality.

It is according to the Australian Competition and Consumer Commission’s interim report into childcare which was handed down on Wednesday.

ACCC chair Gina Cass-Gottlieb. Picture: Sam Ruttyn

The report found childcare fees rose faster than inflation and wage growth during the past four years – up an average of 20 per cent nationally for centre-based child care.

Government subsidies meant out-of-pocket expenses for families increased at a slower rate over that time, it found, but they still rose by 7 per cent.

While Queensland families were not paying the highest daily fees in the country, they copped the highest increase of any state of 25 per cent.

It took the average daily fee in the state to $115 for centre-based care, compared to $132.72 in the ACT, $130.39 in Victoria, $125.53 in NSW, $125.29 in Western Australia, $121.40 in South Australia, $108.45 in the Northern Territory and $107.37 in Tasmania.

ACCC chair Gina Cass-Gottlieb said a survey of more than 4000 parents and guardians, conducted as part of the review, found that most households wanted child care that was within 15 minutes of their home.

“These are complex markets that are highly localised, with most families preferring to find childcare very close to their homes,” she said.

“After parents and guardians have determined how much childcare they need and can afford, factors like location, availability and quality become central to their decision on which childcare provider to use.”

The increased child care subsidy is due to start from July 10, with the new top discount starting at 90 per cent for households with a combined income of $75,000 a year and tapering down to zero for those earning more than $530,000.

Education Minister Jason Clare. Picture: Liam Kidston

While many child care centres are also raising fees from the same date, Education Minister Jason Clare said the ACCC would be watching to ensure providers acted within the rules.

“If they don’t then the ACCC will recommend what actions we need to take to ensure the full benefit of Cheaper Child Care is passed on to families,” he said.

“It’s vital that families are receiving the full benefit of these changes.”

A final report is due to the Treasurer by 31 December 2023.