31 OctELAA responds to ACCC 2nd Interim Report into childcare
On 1 October 2023, the Australian Competition and Consumer Commission (ACCC) released its second interim report on the Commission’s inquiry into childcare services. The report makes draft findings and recommendations regarding the costs of providing childcare services, the nature of competition in childcare markets, the profitability and viability of the sector, and the effectiveness of Australia’s existing price regulation mechanisms in aiding affordability of childcare.
The interim report reported on the ACCC’s findings and included draft recommendations. ELAA, along with other sector representatives, peak bodies, and providers have given feedback on the interim report prior to the publishing of the Commission’s final report which is due at the end of 2023.
The ACCC collected data from large providers and received volunteered data from medium and small providers. The scope of this inquiry focused on Centre Based Day Care, Family Day Care, In Home Care, and Outside School Hours Care but did not include preschool / kindergarten services.
ELAA was pleased to see that the ACCC findings reinforced information that we have collected from our members, including:
- that not-for-profit providers invest more into their workforce, with 94.5% of staff in not-for-profit organisations paid above award
- the recognition that wages and conditions in the sector are less attractive than to that of preschools and schools
- that the Child Care Subsidy (CCS) needs a system change, as it is currently not an adequate system to make child care affordable for Australian families.
ELAA responded to the interim report, supporting the majority of the inquiry’s findings. Some of ELAA’s key recommendations were:
- that the Federal Government commits to co-funding teacher and educator wages in early childhood education and care, to match school sector wages to improve workforce quality, attraction, and retention
- that the ACCC considers strategies to address the unique economic and workforce barriers that regional, rural and remote providers face when developing the final report
- the extension of the parent/carer activity test for low income, low activity families to ensure access to at least two days per week (ideally a minimum of three days per week) of subsidised access to early childhood education and care for all children.
ELAA’s response also included feedback on the streamlining of existing systems and advocating for market management and program linkers.
To read the ACCC’s interim report, CLICK HERE.
