NSW faces childcare crises Mitchell Institute report shows

The report conducted by the Mitchell Institute at Victoria University found 42 per cent of people in regional NSW were living in a "childcare desert", which is an area where more than three kids are vying for one place in centre-based day care services.

Using population figures gathered by the Australian Bureau of Statistics during the 2016 census, the report found the ABS' Broken Hill and Far West region was the worst hit, with eight children per childcare position.

The ABS' Lord Howe Island region was the next worst with 7.4, ahead of the Hawkesbury region at seven.

The study's lead author Dr Peter Hurley said limited or no access to childcare could have long-term impacts on a child's development.

"There is a huge body of evidence showing the positive long-term impacts produced by high-quality early learning in setting children up for success as they transition to school, with the benefits continuing throughout their life," Dr Hurley said.

"It is children from disadvantaged backgrounds who benefit the most, but our research shows these children are the ones most likely to live in an area with a shortage of childcare places."

Read Also:

Dr Hurley said the report also showed that childcare providers were not only establishing services where there was greater demand, but where they were likely to make greater profits.

"Unlike schools, the early learning sector is made up of for-profit businesses and not-for-profit providers," he said.

"Our research shows that the most expensive childcare in Australian cities is also in suburbs with more childcare places, suggesting there is an incentive for providers to open in wealthier areas where families can afford to pay higher fees."

Also among the report's findings was that 12 towns across Australia with a population of about 1500 people were without any childcare facilities including Werris Creek on the Liverpool Plains and Iluka on the state's North Coast. Liverpool Plains mayor Doug Hawkins said while he had not heard of any specific concerns relating to a lack of childcare provisions in Werris Creek, it was an issue facing many regional communities.

"I know we are looking at all of those issues in our council's strategy, which we recently put together, but there's no doubt a lack of things like childcare services does have the potential to hold your growth back," Cr Hawkins told The Land.

"All of the work we have done to attract families to the Liverpool Plains has been focused on keeping in mind that most families will be working on a budget that includes two incomes.

"In the overall scheme of things, creating jobs for all members of the family as well as facilities like childcare are really important in attracting people to regional areas because if you don't have them, people are more likely to gravitate to other areas that do have them."

The study also showed there was a clear link with accessible childcare and higher numbers of women in the workforce as well as a greater number of women with a child under five were in the workforce in locations where more childcare places were available.

Business NSW regional manager Joe Townsend said access to "essential elements" such as childcare, would help regional areas maintain significant economic growth.

"When people are looking to relocate to the country, the first three things they consider about the place they are going are a strong hospital, educational opportunities and childcare," Mr Townsend said.

"I think it is fair to say we are still lacking quite a bit on that childcare front, which makes it quite difficult for people to relocate, and as a result businesses may not be able to fill job vacancies."

Click here to see how your region compares.

The Isolated Children's Parents' Association echoed Mr Townsend's sentiments, calling for the federal government to extend funding for the isolated children allowance to three-to-four-year-old geographically isolated children and help families access an approved distance education early learning program.

"Children should not be missing out on equitable education because of where they reside," ICPA federal president Alana Moller said.

"For families working and living in rural and remote Australia, increased federal government investment in education for their children would provide assurance that they are valued.

"It is time to recognise and further assist families who must educate their children in geographically isolated conditions at all times, a responsibility which families have endured for generations."

To help ease the burden on families, the federal government introduced the childcare subsidy in 2018 and has plans to invest $11 billion into the sector during 2022-2023, including reducing the cost for families with more than one child aged under five in care.

Acting federal Education and Youth Minister Stuart Robert said the government was also investigating ways to help make childcare more accessible in the future.

"To support thin markets, especially in regional and remote Australia, we are already investing $432.5 million over the next four years through the Community Child Care Fund," Mr Robert said. "In 2022-23, there are 824 services, of which 403 services are in regional and remote Australia, receiving 65pc of CCCF funding.

"To better understand the market, the government is investing in a market strategy to be delivered by September.

"The strategy will be complemented by a market monitoring framework for the sector, which will provide information to government about how to buoy competition and consumer choice.

"Together, these initiatives will provide options for greater transparency in the market, and will assist government to identify thin markets and areas of need."

Love agricultural news? Sign up for The Land's free daily newsletter.