The federal government says it will launch an inquiry into rising child care costs next year.

The Australian Competition and Consumer Commission (ACCC) has been directed to run a year-long inquiry into the cost of child care and the main drivers behind increasing fees. The regulator has been asked to make recommendations on how to make the system more affordable.

The government says child care costs have risen by 41 per cent in the last eight years. 

“We want to make sure that we've got all of the necessary measures in place to push prices down,” Education Minister Jason Clare said this week.

“If the ACCC recommends that there are other things we can do to push down prices then that's a good thing.”

The inquiry will begin in January 2023, but the Albanese government is bringing in new legislation from July 2023 to increase child care subsidies for more families.

Mr Clare says the ACCC is expected to provide interim advice in the first half of next year before the subsidy kicks in. 

Some have called on the government to bring the subsidies forward to help families dealing with the current soaring cost of living.

Finance Minister Katy Gallagher said the $11 million review is needed to ensure public money is being spent wisely.

“Having more scrutiny and better transparency about some of the drivers in cost increases would be very useful, not only for parents, but at government, when we look at how we make investments in early childhood education and care,” she said.

The federal opposition has described the inquiry as “too little too late”.

“Labor needs a plan for fees because last time they were in office child care fees skyrocketed by 53 per cent in just six years,” Shadow Early Childhood Education Minister Angie Bell said.

“There is still no plan for how the workforce will meet the increased demand for child care or to address the establishment of new child care services in child care deserts.

“Minister Clare’s announcement in inner city Brisbane doesn’t help those in regional Australia who don’t have access to child care places.”