Child Care Services in Australia Industry Market Research Report Now Updated by IBISWorld

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Continued growth of the Child Care Services industry in Australia will be contingent on operators accepting smaller profit margins. For this reason, industry research firm IBISWorld has updated its report on the Child Care Services industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Government regulations mandating higher staff-to-child ratios and higher standards of staff qualifications are likely to increase wage costs for operators.

In 2011-12, over one million children between the ages of 0 and 12 attended Australian Government approved or state and territory government funded or provided childcare services. Similar numbers are expected to attend in 2013-14. According to IBISWorld industry analyst Arna Richardson, “Increasing government assistance for parents looking to put their children in day care has aided the Child Care Services industry in Australia”. This assistance has included various payments to help families afford childcare (principally the Child Care Rebate and Child Care Benefit) and encourage parents' return to the workforce. This assistance has helped drive industry growth over the five years through 2013-14, with revenue growing by an annualised 1.9%. In 2013-14, the industry is expected to generate revenue of $6.3 billion, up 3.8% from the previous year.

“Along with an increase in government support, a rise in the female labour participation rate over the past five years has reinforced demand for childcare,” says Richardson. Furthermore, relaxation of government regulation allowing childcare centres to register as kindergarten providers has bolstered the appeal of long day care centres, allowing them to compete directly with the Preschool Education industry. An associated industry development has been the move away from the provision of mere childcare services to more educational services in line with changing government policy. To this end, a number of childcare providers (both private and community-based) have changed the names of their facilities, re-labelling them as early learning centres. Prior to the collapse of former industry powerhouse ABC Learning, the industry was highly concentrated. Following the company’s collapse, the industry has returned a low level of market concentration, with Goodstart Early Learning Ltd the only major player.

Over the five years through 2018-19, continued government support and a mini baby boom will contribute to growth. However, this is conditional on shrinking margins for operators. Government regulations mandating higher staff-to-child ratios and higher standards of staff qualifications following the National Quality Standard are likely to increase wage costs for operators. This is a key factor leading to the dominance of non-profit operators, which looks to be the defining story of the Child Care Services industry in the long term.

For more information, visit IBISWorld’s Child Care Services in Australia industry report page.

Follow IBISWorld on Twitter:!/ibisworldau

IBISWorld industry Report Key Topics
Companies in this industry provide childcare. Childcare services are principally provided for children under 12 and include long day care centres, family day care, occasional care, outside school hours care and vacation care. Increasingly, childcare is being incorporated with education and vacation care, as parents work longer hours and rely more on care services.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit or call (03) 9655 3886.

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Gavin Smith
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