TRANSCRIPT:
Earlier this year, Prime Minister Anthony Albanese outlined an ambitious vision.
With more than a million Australian households using childcare in the last year, the cornerstone of his policy was a reform to give hundreds of thousands of families expanded access to subsidies.
"Over 90 per cent of human brain development occurs in the first five years. And that's why early learning and education is so important. But this is an economic reform as well. Because it's about boosting productivity and it's about boosting workforce participation, as well as greater gender equality. Allowing women to go back into the workforce earlier, allowing them to progress their careers, and of course that flowing - that benefit flowing right through - to better retirement incomes, as well. This policy will help families, but it will (also) help communities and help our national economy."
The full impact of that expansion remains unclear.
Education minister Jason Clare has told Sky News he believes they're having the desired effect.
"The good news is the cheaper childcare laws that we passed through the parliament last year, that have started in July of this year, are now starting to have an effect. We've seen the cost of childcare on hour on average dropped by 14%. In July, that's a good thing. But there's a lot more work that needs to be done here and this report zeroes in on, 'what are the next stage - what's the next stage of reform that's needed?'"
But the latest report on the childcare sector from the Australian Competition and Consumer Commission suggests families are struggling with the financial burden of early childhood.
The report has found Australians pay more for childcare than almost anywhere else in the world.
The ACCC says the average Australian household, with two incomes and two kids in care, spends around 16 per cent of its budget on childcare, much higher than the O-E-C-D average of nine percent.
Jessica Rudd is C-E-O of The Parenthood, a group advocating for parents and carers.
She says many parents are in an impossible situation.
"The juggle is ridiculous, and it's certainly not in line with the rest of the O-E-C-D. You're begging, borrowing and stealing care where you can get it, you're leaning on family, you're leaning on friends, and you just feel like something's going to have to give. And that's why a lot of women decide not to go back to work - because they feel like they can't. Even they know that their family budget relies on it, they feel like they just can't make it work. And so therefore they slip behind in terms of their overall earnings."
Jessica Rudd says that financial burden is ultimately counter-productive.
"We need two salaries, usually, in Australia, to pay for life. And so it makes no sense that you have somebody who is more than capable - and willing - to go back into the workforce after having a child, but cannot afford a childcare place."
The ACCC report calls for greater regulation, as well as as direct subsidies for under-served communities and Indigenous children.
Lower income families currently bear the brunt of jumps in prices, with profit incentives meaning providers target rich suburbs in big cities.
In a statement, ACCC chair Gina Cass-Gottlieb has said current policy settings are not delivering affordability and accessibility for all Australians.
The report has also called for more information to be shared publicly with parents, focusing on which providers are posting larger profit margins at the expense of parents and childcare staff.
Jason Clare says he sees value in that recommendation.
"The idea of naming and shaming providers that are just charging, you know, over the top fees, makes a lot of sense to me. I made the point when our cheaper childcare laws came in a couple of months ago that if people were taking advantage of this, just to jack up fees out of proportion with what's happening in the economy, then there should be pressure placed on them. And here's a recommendation that does that."
Ms Rudd doesn't disagree with the Minister.
But she says the government needs to look at the bigger picture.
"What we want is holistic reform. And what's really good about this latest report from the ACCC - which is one in a series - is that it's talking directly about how pricing works in early childhood education, in care. And what we would really like to see is affordable, universal, quality early childhood education and care for every child in Australia so that we can really pick up on those first five years which are crucial to a child's development and make sure no child misses out."
The process is not over, with the ACCC set to deliver its third and final report by 31 December.
Submissions can be made via the ACCC website until 29 October.
