The federal government says its decision to launch an inquiry into rising child care costs next year is to make sure its spending targets the main causes of price hikes.
A year-long inquiry by the Australian Competition and Consumer Commission (ACCC) into the cost of child care and the main drivers behind increasing fees will begin in January.
According to the government, child care costs have risen by 41 per cent in the last eight years.
The ACCC has also been asked to make recommendations on how to make the system more affordable.
It will cost $11 million and will be included in next month's budget.
Education Minister Jason Clare said the point of the review was to make sure the government was across what was driving up prices, to make sure it implemented solutions that matched.
"We want to make sure that we've got all of the necessary measures in place to push prices down," he said.
"If the ACCC recommends that there are other things we can do to push down prices then that's a good thing."
Mr Clare was asked why the government had given the ACCC a year to complete the inquiry, when it is bringing in new legislation from July 2023 to increase child care subsidies for more families.
He indicated the ACCC could, and likely would, provide interim advice in the first half of next year before the subsidy kicks in.
The government has resisted calls to bring the subsidies forward to help families dealing with the soaring cost of living at the moment.
Finance Minister Katy Gallagher said the review was important to ensure public money is being spent wisely.
"Having more scrutiny and better transparency about some of the drivers in cost increases would be very useful, not only for parents, but at government, when we look at how we make investments in early childhood education and care," she said.
The federal opposition described the inquiry as "too little too late" and said it would not to anything to make child care cheaper now, particularly for families facing other financial pressures.
"Labor needs a plan for fees because last time they were in office child care fees skyrocketed by 53 per cent in just six years," Shadow Early Childhood Education Minister Angie Bell said.
"There is still no plan for how the workforce will meet the increased demand for child care or to address the establishment of new child care services in child care deserts.
"Minister Clare’s announcement in inner city Brisbane doesn’t help those in regional Australia who don’t have access to child care places."
Thrive By Five director Jay Weatherill welcomed the inquiry, saying it was a "long-overdue step" to addressing the cost of child care.
"Thrive by Five has heard so many stories from families who would love to access early learning for their children’s benefit, but simply can’t due to the soaring costs," he said.
"We are looking forward to the ACCC’s Inquiry, it's findings, and the resulting actions that will address this extremely important issue for many Australians."
