Child care prices rise year on year as one off CCS savings wash through, says ABS

Child care prices across Australia rose 7.0 per cent in the three months ended September 2019 compared to the same period last year, and 2.5 per cent compared to the three months ended June 2019 according to the latest Consumer Price Index data released by the Australian Bureau of Statistics. 

The increase in yearly prices is the first such rise since the introduction of the Child Care Subsidy (CCS) in July 2018 at which point out of pocket expenses as measured by the ABS were rebased lower by around 8.5 per cent.

Across the major cities of Australia prices remain below the levels preceding the implementation of the CCS, although the degree of difference ranges across the country, with Canberra still 13 per cent below but Brisbane only 1 per cent below. 

This is a function of Brisbane having a lower reduction post CCS relative to other states, as opposed to Brisbane raising fees at a faster rate since. 

Quarterly increases higher in Q3 but still below peaks recorded from 2012 to 2016

Prices in the September quarter compared to the June quarter were up 2.5 per cent across Australia which was the highest quarterly increase since the implementation of the CCS but lower substantially lower than the increases recorded in prior September periods from 2013 to 2016. 

That being said, the fee increase in the September quarter was the highest recorded since 2016 by a small margin with the next highest in September 2017 when prices rose 2.2 per cent. 

Melbourne records highest increase in Q3, Adelaide lowest

Across the capital cities Melbourne once again recorded the highest quarterly increase of 3.2 per cent having previously topped Australia in Q2 2019, closely followed by Perth and Canberra at 3.1 per cent. 

Adelaide had the lowest increase of 1.2 per cent, followed by Sydney at 1.7 per cent. 

Relative to history the September quarterly 2019 increases were moderate with previous years September quarters recording in most cases substantially higher increases particularly in 2015. 

Please note that the September quarter 2018 data is not included as this was the period prices were reset lower due to CCS implementation. 

For further detail on the latest ABS consumer price series please click here.