Competition and Consumer (Price Inquiry—Child Care) Direction 2022

made under the Competition and Consumer Act 2010

Compilation No. 01

Compilation date:         25 August 2023

Includes amendments up to:               Competition and Consumer (Price Inquiry—Child Care) Amendment Direction 2023

Prepared by The Treasury

About this compilation

This compilation

This is a compilation of the Competition and Consumer (Price Inquiry—Child Care) Direction 2022 that shows the text of the law as amended and in force on 25 August 2023 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1—Preliminary                                                                                                      1

1  Name........................................................................................................................................ 1

3  Authority.................................................................................................................................. 1

4  Definitions................................................................................................................................ 1

Part 2—Price inquiry into child care services                                                             2

5  Commission to hold an inquiry................................................................................................ 2

6  Directions on matters to be taken into consideration in the inquiry........................................... 2

7  Directions as to holding of the inquiry..................................................................................... 3

8  Period for completing the inquiry............................................................................................. 3

Endnotes                                                                                                                         4

Endnote 1—About the endnotes                                                                               4

Endnote 2—Abbreviation key                                                                                   5

Endnote 3—Legislation history                                                                                 6

Endnote 4—Amendment history                                                                               7

Part 1—Preliminary

1  Name

                   This instrument is the Competition and Consumer (Price Inquiry—Child Care) Direction 2022.

3  Authority

                   This instrument is made under the Competition and Consumer Act 2010.

4  Definitions

Note:       Expressions have the same meaning in this instrument as in the Competition and Consumer Act 2010 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.

                   In this instrument:

approved child care service has the meaning given by section 194G of the A New Tax System (Family Assistance) (Administration) Act 1999.

child care subsidy has the meaning given by section 3 of the A New Tax System (Family Assistance) Act 1999.

goods has the meaning given by subsection 95A(1) of the Act.

inquiry has the meaning given by subsection 95A(1) of the Act.

not-for-profit has the same meaning as it has in the Charities Act 2013.

price has the meaning given by subsection 95A(1) of the Act.

services has the meaning given by subsection 95A(1) of the Act.

State or Territory authority has the meaning given by subsection 95A(1) of the Act.

supply has the meaning given by subsection 95A(1) of the Act.

the Act means the Competition and Consumer Act 2010.

Part 2—Price inquiry into child care services

5  Commission to hold an inquiry

             (1)  Under subsection 95H(1) of the Act, the Commission is required to hold an inquiry into the market for the supply of child care services. The inquiry is not to extend to any of the following:

                     (a)  the supply of a good or service by a State or Territory authority;

                     (b)  reviewing the operation of any Australian law (other than the Act) relating to approved child care services, except as necessary to consider the matters set out in section 6; and

                     (c)  reviewing the operation of any program funded by the Commonwealth, or any policy of the Commonwealth (other than policies relating to competition and consumer protection, and in considering the matters set out in section 6).

             (2)  For the purposes of subsection 95J(1), the inquiry is to be held in relation to goods and services that are approved child care services.

             (3)  Under subsection 95J(2), the inquiry is not to be held in relation to the supply of goods and services of that description by a particular person or persons.

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.

7  Directions as to holding of the inquiry

                   Under subsection 95J(6) of the Act, the Commission in holding the inquiry is directed to do all of the following:

                     (a)  give to the Treasurer a first interim report on the inquiry by no later than 30 June 2023;

                     (b)  give to the Treasurer a second interim report on the inquiry by no later than 30 September 2023.

8  Period for completing the inquiry

                   For the purposes of subsection 95K(1) of the Act, the inquiry is be completed, and a report on the matter of inquiry given to the Treasurer, by no later than 31 December 2023.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history. 

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history