Oversupply is an increasing issue in Australia’s early learning sector. With few barriers to entry for new or existing providers to set up new centres, the saturation of childcare centres in certain geographic areas has led to many services experiencing lower utilisation or being squeezed out of business. Planning data* predicts that there are currently over 1,000 new centres in the pipeline around the nation, which if completed could deliver another 90,000 childcare places in an already flooded market.
If not addressed, oversupply will lead to increased costs for families and may impact on the quality of services in local communities. However with the right policies in place, we can ensure a sustainable early learning sector that continues to provide families with affordable high quality early learning services, thus giving Australia’s youngest generation the best start in life.