ABS finds childcare availability barriers rise as out-of-pocket costs increase

Childcare availability was a more commonly reported barrier among mothers unable to start work in 2025–26, while separate ABS figures show families’ out-of-pocket childcare costs rose 4.4 per cent.

One in five mothers with children under 15 who wanted a job but were unavailable to start within four weeks reported that childcare was unavailable, booked out or not offered locally.

The 20 per cent result was up from 9 per cent in 2024–25, according to the Australian Bureau of Statistics’ latest workforce participation release.

Separate inflation figures showed out-of-pocket childcare costs increased 4.4 per cent in the year to September 2026. Both releases were published on 28 October.

Caring responsibilities remain a barrier to work

Caring for children was the leading reason women who wanted a job could not start within four weeks. It was identified by 39.6 per cent of women in this group, compared with 7.8 per cent of men.

The detailed childcare responses included a preference to look after children, reported by 30.9 per cent of mothers who wanted work but was unavailable. Childcare being too expensive was reported by 6.6 per cent.

The availability category combined booked-out services, unavailable care and no childcare in the local area. The release did not establish whether the increase from 9 to 20 per cent was statistically significant.

School hours and childcare assistance feature strongly

The ABS also examined what would help parents who were not working enter or return to employment. This covered a broader group than mothers who wanted a job but could not start.

Among 544,600 non-working mothers with children under 15, the following were rated very important:

• 49.3 per cent: being able to work school hours.
• 48.2 per cent: being able to work part-time hours.
• 47.1 per cent: financial assistance with childcare costs.
• 43.4 per cent: access to childcare.

Respondents rated each incentive separately, so the percentages cannot be added.

Childcare costs rise, but annual growth slows

The September Consumer Price Index recorded a 4.4 per cent annual increase in out-of-pocket childcare costs, slightly above headline inflation of 4.3 per cent.

Annual childcare price growth slowed from 10.3 per cent in September 2025. This means prices increased more slowly; it does not mean they fell.

Participating services were also subject to fee growth caps under the Australian Government’s worker retention payment. These caps limited fee increases, although the ABS release does not separately quantify their contribution to the slower growth in out-of-pocket childcare costs.

The childcare measure reflects household costs after subsidies, rather than service fees alone. The ABS identified fee growth, annual indexation of subsidy income thresholds and hourly rate caps, and the replacement of the activity test with the 3 Day Guarantee as factors affecting the result.

The release did not quantify each factor’s contribution to the annual increase.

Subsidised hours and available places

The 3 Day Guarantee began on 5 January 2026, giving Child Care Subsidy-eligible families at least 72 subsidised hours per child each fortnight, regardless of activity levels.

Families must still meet eligibility requirements and generally pay a gap fee. The Department of Education also confirms that the guarantee does not secure a place with a provider.

The findings come amid renewed debate about childcare subsidies and workforce participation. A recent Menzies Research Centre discussion paper, recommends restoring the activity test for the first 72 subsidised hours per fortnight and expanding support for in-home care.

These recommendations are proposals from the discussion paper, rather than changes to current subsidy arrangements.

Access the ABS workforce participation findings here, September inflation figures here and 3 Day Guarantee guidance here.