ACCC welcomes pricing inquiry exploring the costs of operating an ECEC service

The Australian Competition and Consumer Commission (ACCC) has welcomed direction from the Federal Government outlining the details of the ACCC inquiry into the supply of early childhood education and care (ECEC) services in Australia.

 

The inquiry will look at the costs of operating ECEC services, including: 

 

• employees’ wages and property costs; 
• the level of competition in the ECEC market; 
• the level of demand and supply; and, 
• prices charged to consumers, including any impacts of government policy.

 

It will examine ECEC as it is offered in metropolitan, regional and remote areas of Australia, ECEC offered by different sizes and types of operators, as well as the different forms of ECEC including centre-based care, outside school hours care and family day care.

 

“This is an important and welcome opportunity for the ACCC to explore, analyse and report on the factors that drive prices in the sector,” said ACCC Chair Gina Cass-Gottlieb.

 

“We look forward to consulting widely in this inquiry with a broad range of childcare providers as well as parents and carers.” 

 

“Access to affordable ECEC that meets the needs of growing children and their families is critical for workforce participation and the Australian economy,” Ms Cass-Gottlieb added.

 

The Federal Treasurer has asked the ACCC to commence its inquiry by 1 January 2023.

 

“We are eager and have already started preparations to undertake this important work. We expect to shortly begin information gathering and engagement with the sector,” Ms Cass-Gottlieb continued.

 

“We will conduct a range of consultation processes to ensure a diverse range of ECEC operators and consumers across Australia can engage with and contribute to our inquiry. We will be publishing an indicative consultation schedule on our website.”

 

The ACCC will deliver its final report by 31 December 2023. An interim report will be delivered by 30 June 2023.