Childcare costs surge forcing Sydney parents to pay up to $200 a day

Red-tape, soaring lease costs and staff-child ratios have pushed childcare prices through the roof in Sydney where some families are paying as much as a staggering $200 a day. Sydney parents are paying the highest costs in Australia prompting NSW’s peak childcare body to call for an urgent parliamentary inquiry.

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Red-tape, soaring lease costs and staff-child ratios have pushed childcare prices through the roof in Sydney where some families are paying as much as a staggering $200 a day.

Brighton Le Sands mum-of-three Yasna Alania, 25, pays up to $600 a fortnight in childcare costs for her three children Zavier, 4, Adelina, 3, and Gabriel, 1. Picture: Jonathan Ng

The latest figures showing Sydney parents are paying the highest costs in Australia has prompted NSW’s peak childcare body to call for an urgent parliamentary inquiry into the industry.

The Australian Childcare Alliance NSW (ACA) claims state and federal governments have failed to halt rising costs.

The latest Productivity Commission figures reveal the median weekly cost of 50 hours of childcare in NSW is $494 for major cities and inner regional areas — almost $30 more than the Australian average.

At the Lookout Early Education Centre in Mosman, the government’s Child Care Finder website shows daily fees for a 13- to 24-month-old child are $185. The ACA said it knew of one centre in Sydney charging $200 a day.

Fees are rising despite an oversupply of childcare centre in parts of Sydney, Newcastle, Illawarra and Coffs Harbour.

This is partly due to punishing lease costs which are linked to the number of licenced childcare places in a centre not how many children are attending, as well as having to maintain a base number of staff to care for children.

NSW is the only state that requires centres to employ up to four degree-qualified teachers compared to up to one degree-qualified teacher for the same number of kids in all other Australian jurisdictions.

The latest figures showing Sydney parents are paying the highest costs in Australia. Picture: Jonathan Ng

“When you have oversupply, you lose customers and when you lose customers, you’re stuck with fixed costs so the remaining children have to cover those fixed costs,” ACA chief executive officer Chiang Lim said.

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Mr Lim said families with young children aged 0-5 in NSW “generally do not feel that our political leaders are adequately solving their cost of living issues”.

Premier Gladys Berejiklian has made the cost of living a key part of her campaign for next month’s election. But Mr Lim said simply throwing money at the issue would not work, adding: “Australian voters are going to put all politicians on notice that families with young children can’t be taken for granted any longer.”

The ACA is calling for a NSW Upper House inquiry into childcare costs and Mr Lim said the federal parliament “might like to consider emulating” it.

Brighton Le Sands mum Yasna Alania, 25, spends $500-600 a fortnight on childcare for her three children aged four, three and one.

She has had to ask family and friends for help because the fees are “quite difficult” to afford on a part-time wage.

“It’s just too much money for parents — a lot of parents are struggling … many friends of mine are going through the same thing,” Ms Alania said.

NSW Opposition Leader Michael Daley this morning supported the ACA NSW’s call for a parliamentary inquiry saying “families need to be protected from gouging”.

“I’ve got four children so I know how expensive childcare is, so there’s been a sensible call today for a parliamentary inquiry and as childcare costs go through the roof I think it’s time we did examine them to take the pressure off family budgets,” Mr Daley said.

“So that’s something we will consider if I become the Premier, for sure.”

Mr Daley said childcare was “no longer a luxury, it’s a necessity... and it should be as cheap as it can be”.

“We’re all about alleviating pressure on families and as a father of four, my wife and I know exactly how expensive childcare is,” he said.

“It’s why a lot of families like mine don’t go overseas for holidays, don’t have new cars, don’t spend money on themselves and on lavish things because they spend it on their families.”