December 2023 final report29 Jan 2024

On 29 January 2024, the ACCC released its final report for the inquiry into childcare services.

The final report contains the ACCC’s findings and recommendations related to the impact of the Cheaper Child Care reforms, prices, costs, profits, competition within childcare markets and subsidies and price regulation models.

The final report also contains further analysis of family day care and in home care services, and summarises the feedback provided to the ACCC from stakeholders on the September interim report.

Clarification

In Section 4.2 of the final report for the inquiry into childcare services, wages for staff include their minimum hourly rate of pay plus additions such as any applicable allowances, loading, and superannuation.

Use of this definition likely contributes to an overestimation of the difference in pay relative to the award rate, as some providers may have reported relevant award rates that did not include these additions.

We are aware of some inconsistency between providers as to whether they reported staff wages and award rates inclusive or exclusive of these additions.

Readers should exercise caution when interpreting the figures in this section, noting that our findings and recommendations remain unchanged.