The ACCC has released its interim report for the inquiry into childcare fees and services, and are inviting submissions in response to the findings and recommendations through its website - deadline 29 October.

The ACCC is recommending price caps be considered beyond the current hourly rate backed by a "credible threat" of government intervention.

The report found childcare operators target the most profitable areas within the wealthiest suburbs in Australia’s biggest cities, meaning privileged areas are most likely to have places and competition.  The draft recommendations include that the government consider intervening to ensure supply in remote areas, as well as additional and targeted support for First Nations communities.

So great is the need for reform that the ACCC recommends government go back to first principles and consider what it wants to achieve with a childcare spend that's demanding ever more of the budget.

Early Childhood Education Minister Anne Aly said it was important to expand access to all families. This report will inform the in-depth Productivity Commission review, helping us chart the course to universal access to early childhood education and care.