Melbourne, Australia (PRWEB) February 27, 2015 -- Nearly 1.5 million children aged 12 and under are expected to attend some form of government-approved or government-funded childcare services. Increasing government assistance for parents looking to put their children in day care has aided the Child Care Services industry over the past five years. Government assistance has included various payments to help families afford childcare – principally the Child Care Rebate (CCR) and Child Care Benefit (CCB) – and encourage parents to return to the workforce. According to IBISWorld industry analyst Arna Richardson, “this assistance has helped drive industry revenue growth over the past five years.” Revenue is expected to grow by an annualised 9.2%. In 2014-15, the industry is expected to generate revenue of $9.0 billion, up by 8.9% annualised, due to higher fees and more government funding.
A rise in the female labour participation rate over the past five years has also reinforced demand for childcare. Furthermore, relaxation of government regulations 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. An associated industry development has been the move away from providing mere childcare services towards more educational services in line with changing government policy. “Consequently, a number of childcare providers (both private and community-based) have changed the names of their facilities, relabelling them as early learning centres,” says Richardson. Over the five years through 2019-20, higher fees, continued government support and increased female labour force participation rates will contribute to industry revenue growth. Over the same period, recent regulatory reforms (including the new National Quality Standard) will serve to gradually change the industry's operating backdrop, as will the 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. Over the next five years, the government is expected to implement associated long-term policy changes in response to the Productivity Commission inquiry's recommendations.
The Australian Child Care Services industry is characterised by its small-scale fragmented nature. Further evidence of the small-scale nature of the industry is provided by data from the Australian Children's Education and Care Quality Authority, which details the nature of approved providers under the Education and Care Services National Law. As at 30 September 2014, the majority of approved childcare providers (83.0%) only managed one education and care service, with just 16.0% of providers managing two to 24 approved services. Just 1.0% provided 25 or more services.
For more information, visit IBISWorld’s Child Care Services industry in Australia report page.
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.
Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau
IBISWorld industry Report Key Topics
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 http://www.ibisworld.com.au or call (03) 9655 3886.
Gavin Smith, IBISWorld, http://www.ibisworld.com, +61 396553838, [email protected]
Share this article