Out of pocket childcare costs for parents have skyrocketed since 2011, a new report says.
The Centre for Independent Studies report released on Wednesday found that cost of increased red tape in the sector is being passed on to parents.
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Hourly fees have increased on average by 20 per cent between 2011 and 2017 across all child care types, the report says.
At the same time out of pocket costs for parents increased 48 per cent.
Senior policy analyst Eugenie Joseph says the rising costs are due to mandatory staff-to-child ratios and childcare worker qualification rules.
"This is happening at a time when more parents are relying on formal childcare to support their participation in the workforce," she said in a statement.
Wait lists blowing out
The report also found some parents face child care waitlists of up to two years.
They found the supply of child care centres across the country is "uneven and fragmented", with wait times of up to two years for children under the age of two.
At the same time there is an oversupply of child cares in some urban areas of Australia.
Thousands of childcare workers will walk off the job next week as part of a push to persuade the federal government to increase their pay.
Educators will strike on September 5 and plan to hold political rallies in every state and territory.
