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

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Changing government regulations regarding staff-to-student ratios and staffing qualifications are expected to drive up wage costs for childcare operators. 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

Increased government support is driving up demand for childcare services.

In 2012-13, over one million children aged 12 years and under attended government-approved or funded childcare services. Similar numbers are expected to attend in 2013-14. Increasing government assistance for parents looking to put their children in day care has aided the Child Care Services industry. Government assistance has included various payments to help families afford childcare (principally the Child Care Rebate and Child Care Benefit) and encourage parents' to return to the workforce. This assistance has helped drive industry growth over the five years through 2013-14, with revenue expected to grow by an annualised 6.3%. In 2013-14, the industry is expected to generate revenue of $7.8 billion, up 5.4% from the previous year.

IBISWorld industry analyst Arna Richardson states “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.” Furthermore, relaxation of government regulation has allowed childcare centres to register as kindergarten providers. This has bolstered the appeal of long day care centres, allowing them to compete directly with the Preschool Education industry. According to Richardson, “an associated industry development has been the move away from the provision of mere childcare services towards 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, relabelling them as early learning centres. The industry is currently the subject of a Productivity Commission inquiry – the first looking into the childcare industry since the 1990s. Over the five years through 2018-19, continued government support and a mini baby boom will contribute to revenue growth. Government regulations mandating higher staff-to-child ratios and higher standards of staff qualifications to comply with 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 industry in the long term despite the recent entry of new corporate players. The need for more flexible operating hours to accommodate changing family living and working arrangements will also change the profile of the industry in the long term.

The Child Care Services industry is characterised by its small-scale, fragmented nature. As such, the industry has a low market share concentration. This is in stark contrast to the industry as it stood in 2007-08. Prior to the collapse of former industry powerhouse A B C Learning Centres, the industry had a much highly level of concentration. Following the collapse of A B C Learning, the industry has returned to the low level of concentration. Today, major players, Goodstart Early Learning (a not-for-profit operator) and G8 Education, are estimated to control a reasonable share of the market.

For more information, visit IBISWorld’s Child Care Services report in Australia industry 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 years of age 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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