Preschool Education in Australia Industry Market Research Report Now Updated by IBISWorld

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The Preschool Education in Australia industry has become the target of reform and regulation over the past five years. For this reason, industry research firm IBISWorld has updated its report on the Preschool Education industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Although the industry is fragmented at the state level, it has recently been the target of federal reform and standardisation.

The Preschool Education industry in Australia is currently the target of Federal Government reform. Although the industry is fragmented at the state level, the Coalition of Australian Governments (COAG) agreement has ensured Federal Government support and funding for the early education sector. In December 2009, COAG introduced the Early Years Learning Framework, to improve the quality and national consistency of preschool and childcare services. According to IBISWorld industry analyst Lauren Magner, “the framework set out new compulsory national standards for early childhood education and care providers and included a National Quality Standard, minimum staff-child ratios, staff qualification requirements, a quality rating system and a new national body.” It also included establishing universal access to 15 hours of preschool education for 40 weeks of the year to all four-year-olds by the end of 2012-13. To help providers meet the new requirements and execute these reforms nationwide, the Federal Government committed $955.0 million to states and territories spread over the five years through 2012-13.

The additional funding is the main reason for strong revenue growth over the past five years. The cash injection has not only enabled more children to enrol in preschool programs, but industry participants are now able to provide additional spaces. “As a result, industry revenue is forecast to grow at a compound annual rate of 12.6% over the five years through 2013-14,” says Magner. The industry will continue to ride the wave of growth following the final government payment in 2012-13, with revenue expected to rise by 6.7% in 2013-14, to $1.8 billion. The industry has a low level of concentration, as a large proportion of preschools are community-managed. No one operator controls a significant share of revenue.

Although industry participants have had access to a larger pool of funds, the strict National Quality Framework requirements that operators have to comply with is expected to impose larger costs on Preschool Education industry operators. The higher staff-to-student ratios and overall higher qualification requirements are likely to increase wage pressures in the industry. Consequently, industry profit margins are expected to contract over the next five years. Even though 2012-13 was the last year of extra funding from the Federal Government, the government's ongoing commitment to maintaining universal access is expected to help sustain revenue growth. A rise in the population aged four years old will be one of the major factors driving revenue over the next five years.

For more information, visit IBISWorld’s Preschool Education report in Australia industry page.

Follow IBISWorld on Twitter:!/ibisworldau.

IBISWorld industry Report Key Topics

Industry participants are primarily engaged in providing accredited pre-primary school education. Preschool programs are educational in nature and are designed to introduce children to the ideas, attitudes and behaviour required in a school environment. Preschool education is generally directed at children aged three to five years and is provided by staff that have training in an educational field. Preschools may be operated by government, community organisations or the private sector.

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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