Report finds Victorian parents pay the highest childcare fees of any state

Childcare costs have soared to $626 a week in Victoria, while Productivity Commission data reveals worrying accounts of kids experiencing trauma during care.

Victorian parents are being slugged the highest childcare fees of any state, and were last year forced to pay an extra $20 a week and $54 more than five years ago.

Despite parents paying more than ever for childcare, more than 5000 serious incidents occurred at childcare centres across Victoria last year, a federal snapshot has revealed.

New data from the Productivity Commission has uncovered that nearly 4000 children fell sick or experienced trauma while at childcare, 755 needed to be treated for an emergency and shockingly nearly 500 were at times locked out or unaccounted for.

This is despite the cost of childcare reaching a whopping $626 a week in Victoria last year – a $20 increase every week compared to 2022, and above the national weekly average of $610.

There were more than 5000 serious incidents at Victorian childcare centres last year. Picture: iStock

Childcare cost $620 in New South Wales, $583 in Queensland and $603 in South Australia.

Victoria was second only to the ACT, which charged the highest fees ($690) while Tasmania was the cheapest ($550).

The latest Productivity Commission report shows that after subsidies, parents earning just $35,000 a year are dedicating five per cent of their weekly income on childcare.

But in comparison, parents on $295,000 are paying 5.7 per cent despite earning more than eight times more.

Those on an average annual income of $75,000 pay the least – just over four per cent of their weekly disposable income on childcare, while those on $175,000 pay the most, contributing seven per cent.

The costs of childcare continue to pose a major barrier to joining the workforce, the data highlighted. Of the nearly 251,000 people who were unemployed due to caring for their children, more than 28 per cent said their decision not to work was due to childcare. Of them, 23.4 per cent cited the soaring costs.

Still, children aged up to 12 are now attending record levels of childcare – including before and after school care.

The average child in this state attends 33 hours a week of centre-based care, up from 28 hours in 2016.

The figures also show federal and state governments spend $21,824 for each Victorian state school student – the third lowest in the country and $687 below the national average.