Childcare Fees Grow Faster Than Inflation Despite Government Intervention

The cost of daycare has risen by 9.1 percent, an inquiry has found.

Australian Prime Minister Anthony Albanese visits a childcare centre in Perth, Australia, on May 16, 2022. Lisa Maree Williams/Getty Images

Childcare subsidies from the government may be “eroded by fee increases” over time, according to a new report from Australia’s consumer watchdog.

The inquiry from Australian Competition and Consumer Commission (ACCC) found that childcare fees have increased at a quicker rate than inflation and wages in Australia despite the government changing childcare subsidy rates in July.