More early childhood education centres are expected to fold under rising costs.
The Household Economic Survey shows the average weekly ECE fee has jumped from $25 in 2007, to $90 in 2023.
Early Childhood Council CEO Simon Laube says pay parity rules have driven 443 centres to shut in the past three years.
He says it drives up teacher salaries.
"But the funding from the Government doesn't follow suit, so as the salaries increase, the providers are paying more and more to pay the teachers - but the funding stays the same."
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