Long Waiting Lists and Shortage of Childcare Centres Plague Regional Areas

If you are a parent living in a regional area, you know that amongst all the other challenges of raising children comes an extra one: the struggle to find appropriate childcare services. Unlike their city counterparts, families residing outside metro areas often face long waiting lists for available childcare centres and long travel times due to lack of nearby facilities. In addition to this, with changes in government funding policies and ever-increasing costs for both parents and providers alike it can be difficult for these sites remain open or even come into existence at all - leaving parents without reliable care options for their children. This can have a ripple effect on families and communities - impacting workforce participation, productivity, and access to essential services. It’s a challenging problem that requires innovative solutions, and one that deserves greater attention from policymakers and community leaders.

Reasons for Lack of Accessible, Affordable Childcare

Access to affordable and accessible childcare has become a pressing issue in many communities. In 2022, the Mitchell Institute released a study revealing that roughly 35% of the Australian population, equating to about nine million individuals, resided in regions designated as childcare deserts. Such regions are characterised by an excessive demand for childcare services, with more than three children vying for each available childcare spot¹. Despite the significant need for childcare services, current options remain limited and often unaffordable. One of the main reasons for this issue is the high cost of quality childcare programs. Many providers have had to raise their prices to cover expenses such as rent, insurance, and staff pay. Additionally, the shortage of qualified and well-compensated caregivers also contributes to the lack of available spots. A study conducted by the advocacy group Thrive by Five discovered that over the last three years, more than 90% of parents surveyed in regional Australia stated that childcare expenses had increased, and 79% of regional parents believed that access to low-cost, high-quality childcare would be beneficial for their families¹. With so many competing demands on working families, it is crucial for both the government and private sector to invest in affordable and accessible childcare solutions.

Impact of the Waitlist on Working Parents and Children

Being placed on a waitlist for childcare can be a stressful and uncertain time for working parents and their children. With the high demand for quality childcare and limited space, many families find themselves waiting for months or even years for an opening. This can result in a domino effect, causing parents to miss work or scramble to find alternative arrangements, which can be both costly and unpredictable.

Regional Australia Institute CEO Liz Ritchie said childcare availability in regional areas was affecting the regional workforce. "As a working mum, I know the challenges and stress involved in managing childcare issues, while juggling a full-time job. "Childcare is a critical component many people look for when deciding to make the move to regional Australia - and we need to do better," Ms Ritchie said [1].

For children, the waitlist can be a source of anxiety and social isolation, as they may miss out on valuable interactions with peers and fall behind in important developmental milestones. The impact of the waitlist on working parents and their children cannot be underestimated and speaks to the need for more accessible and affordable childcare options.

Jacqueline Emery, the CEO of Royal Far West, emphasised the significant role played by early childhood educators in identifying developmental issues in children at an early stage, enabling families to seek long-term intervention and care for the well-being of their child. Unfortunately, women and essential workers are disproportionately affected in regions where access to childcare is low. The reduced access to childcare in these regions is also reflected in lower levels of workforce participation for women with children under the age of five.

Despite the many benefits of living in regional Australia, such as those seen during the COVID-19 pandemic with young people moving to regional areas, the lack of access to childcare is a significant barrier for families. This issue is particularly impactful for women's ability to participate in the workforce, which ultimately impacts the health, well-being, and economy of all of regional Australia. Essential workers such as police officers, ambulance staff, and nurses have difficulty attending work due to the lack of childcare options available, further exacerbating the situation.

Significantly more options and accessibility to affordable, appropriate childcare throughout regional areas is essential. This can only occur through a collective effort from parents, government agencies, and technology resources. It is imperative that families who are on waitlists or struggling to find care are informed of the financial assistance and technological options available. Furthermore, government agencies have a responsibility to allocate funds appropriately so services are accessible for communities who have limited resources. Doing so would make life easier for working parents, increase childcare availability in the regions, benefit children’s long-term learning outcomes and provide employment opportunities within the childcare sector. When this occurs we can create environments that give families equilibrium between work/life balance while setting their children up for future success.

The Finexia Childcare Income Fund provides a unique opportunity for investors to support the development of new childcare centres across the country while also earning a return. Currently, the fund returns 9.64% per annum for investors, making it a potentially attractive option for those seeking to invest in a socially responsible cause while also earning a competitive return on their investment. By investing in the fund, individuals can contribute to the growth and expansion of quality childcare services in regional areas, addressing the ongoing shortage and helping families to access the care they need for their children.

Steve Roy

Adviser & Business Analyst

[1] Costigan, M. (2023, April 23). Parents waiting up to 12 months for childcare in regional areas. St George & Sutherland Shire Leader. Retrieved April 26, 2023, from https://www.theleader.com.au/story/8134229/parents-waiting-up-to-12-months-for-childcare-in-regional-areas/

*The investment return is fixed at 5.65% above the prevailing RBA cash rate which is currently 3.60% at the time of publication (given returns are reinvested, the return is 9.64% pa). All investments carry degrees of risk. This product is not appropriate for everyone. You should obtain a copy of the Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) relating to the product and consider them before making any decision to invest in the product. These disclosures can be obtained from registering your contact details on https://www.finexia.com.au/childcarefund.html. Forecast returns and distributions are subject to several assumptions that are detailed in the PDS.