6Directions on matters to be taken into consideration in the inquiry

6 Directions on matters to be taken into consideration in the inquiry

Under subsection 95J(6) of the Act, the Commission is directed to take into consideration all of the following matters in holding the inquiry: (a) the costs incurred by providers of goods and services covered by subsection 5(2), including: (i) the cost and availability of labour; and (ii) the use of land and related costs; and (iii) finance and administration costs; and (iv) regulatory compliance costs; and (v) the cost of consumables; and (b) the prices charged, since 1 January 2018, by providers of goods and services covered by subsection 5(2), including: (i) price changes following the commencement of the Family Assistance Legislation Amendment (Cheaper Child Care) Act 2022; and (ii) price changes as a result of Commonwealth policies that have the objective of lowering child care costs to consumers; and (c) how costs and prices differ by: (i) provider type (for example, commercial and not-for-profit); and (ii) provider size (for example, providers operating a single child care centre and providers operating multiple child care centres); and (iii) type of child care services provided (for example, centre based day care, outside school hours care, family day care and in home care); and (iv) age and characteristics of the child in child care; and (v) geographical location (for example, urban, regional, and remote); and (vi) level of competition present in the market for the supply of child care services; and (vii) overall quality rating of the child care services provided, as assessed against the National Quality Standard (as at 1 February 2018) under the National Quality Framework, as published on the Australian Children’s Education and Care Quality Authority website; and (d) factors affecting demand, supply and competition in the market for child care services, including: (i) the extent and existence of supplier practices and strategies in response to the existing government funding arrangements and regulatory settings; and (ii) the impacts on the market from the coronavirus known as COVID‑19, including the impact of the temporary coronavirus response measures contained in the Child Care Subsidy Minister’s Rules 2017; and (e) the impact of the above factors on child care provider viability, quality and profits; and (f) the impact and effectiveness of existing price regulation mechanisms and any impediments inherent in those mechanisms to their effective operation.