Report finds childcare access comes down to wealth

A report by think tank Mitchell Institute found childcare accessibility in Australia comes down to wealth.

An Australian first report has found that where live you matters when it comes to childcare accessibility.

The research, by the Mitchell institute for Education and Health Policy at Victoria University, found children in wealthier areas of Australia had better chances of receiving a spot at a childcare facility.

In Melbourne’s wealthiest locations, including Stonnington, Glen Eira and Yarra, an average of 1.5 children under four were vying for each available childcare space.

It contrasts to three or more children vying for a childcare space in regional Victoria and lower socioeconomic outer Melbourne suburbs.

In the City of Casey, there was one childcare space available per 2.7 children in the city’s North, and one space per 2.5 children in the South of Casey.

Lead author Dr Peter Hurley from Victoria University’s Mitchell Institute said the research showed providers were not only establishing services where there was greater demand, but where they were likely to make greater profits.

“Unlike schools, the early learning sector is made up of for-profit businesses and not-for-profit providers,” he said.

“Our research shows that the most expensive childcare in Australian cities is also in suburbs with more childcare places, suggesting there is an incentive for providers to open in wealthier areas where families can afford to pay higher fees.”

The report also found 40 per cent of rural areas are facing an acute shortage of childcare places, with some having five or more children for each childcare place.

“For many regional towns, Australia’s policy approach to early learning results in a complete absence of provision, especially for towns with a population of less than 1500 people,” Dr Hurley said.

“These are not thin markets but rather an absence of a market as the current policy settings mean it is not viable for providers to offer childcare.”

To view the report, head to bit.ly/3qrqyxi