Data released by the Productivity Commission on Monday revealed the median cost for pre-school per child has increased from $2.05 an hour in 2021, to $2.88 the following year.

Parents in major cities were paying as much as $3.24 per hour in 2022, 60 per cent more than their regional counterparts who paid $2.00 per hour.

Prices have also rocketed for day care with the median weekly cost for 50 hours at a childcare centre growing from $445 in 2014 to $610 in 2023.

Meanwhile family day care has surged from $401 to $577 in 2023.

This comes after the consumer watchdog’s childcare report revealed a decline in day care service availability had reduced flexibility and options in the market.

The sector is also suffering from educator labour shortages, particularly in regional and remote Australia.

Though the government increased its child care subsidy for families earning under $530,000 in July, the Australian Competition and Consumer Commission’s report found fees had still grown faster than inflation and wages since then.

The Productivity Commission’s findings also revealed the number of serious incidents had increased.

Between 2022 and 2023, there were 139.4 serious incidents per 100 approved childcare services, up from 123.8 the previous year.

Nearly 80 per cent of those involved serious injury, trauma, or illness of a child.

The data also revealed that children who were Aboriginal and Torres Strait Islander, came from non-English speaking backgrounds, grew up in regional and remote areas, or came from lower income families participated in child care at disproportionately lower levels.