The Australian Competition and Consumer Commission has finalised its year-long inquiry into the childcare market, with a focus on regulations and the cost of running services.

It found increases in subsidies has helped families in the city, but also created a situation where providers are boosting services in some areas and not others.

The ACCC has called called for government action and for the activity test to be scrapped or modified.

The Secretariat for National Aboriginal and Islander Child Care has long called for the activity test to be scrapped because it reduces the availability of child care for First Nations children.

The activity test takes into account the number of hours a parent works or studies to determine how many hours of childcare their child receives.

CEO for the Secretariat for National Aboriginal and Islander Child Care, Catherine Liddle told the ABC that the current childcare model is for profit, not families.

She says if you’re a family struggling to get into the workforce, if you’re a family in a regional or remote area where jobs don’t exist, you aren’t able to access early education and care.

The Arrernte/Luritja woman says the current model doesn’t focus on what communities actually need, what care facilities are needed or how to genuinely invest in making sure children are successful when entering the school setting.

(IMAGE: Playground, Matthew Kenwrick, Flickr.com)