The out-of-pocket expenses of parents have skyrocketed since 2011, says a new report.
The report of the Center for Independent Studies published on Wednesday found that the cost of increased bureaucracy in the sector is being transferred to parents.
Hourly rates have increased by an average of 20 percent between 2011 and 2017 in all types of child care, says the report.
At the same time, out-of-pocket costs for parents increased by 48 percent.
Senior policy analyst Eugenie Joseph says the rising costs are due to mandatory relationships between staff and children and the qualification standards of child care workers.
"This is happening at a time when more parents depend on formal child care to support their participation in the workforce," he said in a statement.
Waiting lists exploding
The report also found that some parents face child care waiting lists of up to two years.
They found that the supply of child care centers throughout the country is "unequal and fragmented," with waiting times of up to two years for children under two years of age.
At the same time, there is an oversupply of child care in some urban areas of Australia.
Thousands of child care workers will leave work next week as part of an effort to persuade the federal government to increase their salary.
The educators will attack on September 5 and plan to hold political rallies in each state and territory.