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Writer's pictureTheresa Pham
Oct 144 min read

Breaking the Glass Ceiling: Starts with Affordable Childcare

Updated: Nov 10

What is the most financially significant career decision a woman can make? 

Hint: It’s not pursuing an MBA - it’s choosing to become a mother.



Meet Alexandra Dockril, a 33-year-old mother of two from NSW. In an interview, she shared how skyrocketing childcare costs and endless waitlists have kept her out of the workforce for over two years. Her story is far from unique. Across Australia, many women face the same tough decision, weighing the financial burden of childcare against their career ambitions. 


According to the Australian Bureau of Statistics (ABS), 'caring for children' is the main reason women aged 25-54 are not seeking employment. This trend directly affects women’s careers and the economy, as they often reduce work hours or leave the workforce, deepening the gender pay gap and reinforcing the glass ceiling. 


This isn't just Alexandra’s dilemma—it could be yours, or that of your peers, as the high cost of childcare continues to shape both personal choices and societal norms.


The Glass Ceiling and the Childcare Pipeline 

The term ‘glass ceiling’ was created by Marilyn Loden at the 1978 Women’s Exposition. It has been a popular metaphor to describe the invisible barriers blocking women's advancement to top positions despite their qualifications. The issue persists due to subtle discrimination, unequal opportunities, and systemic workplace biases. Research from KPMG, Diversity Council Australia, and WGEA shows the glass ceiling remains today, with the gender pay gap most pronounced among top earners, reaching 18% for the highest-paid 20% of Australian workers.


Source: She’s Price(d)less - KPMG, DCA, WGEA


However, the roots of the glass ceiling often begin much earlier in women's careers, with affordable childcare playing a crucial role. 


Australia’s Childcare Conundrum

Despite Australia being known for its high standard of living, it ranks poorly in childcare affordability, placing 26th out of the 32 OECD countries. According to the Australian Competition and Consumer Commission (ACCC), the average Australian family spends 16% of their net household income on childcare, significantly higher than the OECD average of 9%.


Concerningly, Australia’s ranking in childcare affordability has not improved, with childcare costs outpacing inflation over the past four years, averaging $12.40 per hour, while full-time women earn around $45.37 per hour. This financial disparity forces many women to reconsider the viability of remaining in the workforce. It's important to note that these averages can mask the reality for women in lower-paying jobs, where childcare costs can be especially burdensome. For many mothers, nearly 50% of their take-home pay is consumed by childcare, making it even harder to balance work and family. Without affordable childcare, women are often compelled to delay or abandon their career aspirations, further reinforcing gender inequality in the workplace.


Why This Matters:The Economic and Social Impact 

Improving childcare affordability could boost female workforce participation by 13%, adding an estimated $11 billion annually to Australia's GDP, according to the Grattan Institute. Reducing out-of-pocket childcare costs unlocks economic opportunities, allowing women to contribute more to paid work. Currently, the average 25-year-old woman with at least one child can expect to earn $2 million less over her lifetime than her male counterpart.


Affordable childcare is key to greater gender equality. Women disproportionately shoulder unpaid work and caregiving, reinforcing traditional gender roles and widening the lifetime earnings gap. Better childcare access enables women to return to work sooner and maintain their careers. This has the potential for long-term social change, fostering more equitable division of labour at home and creating a culture of shared parental responsibilities. Addressing these structural barriers improves women's financial security and helps break the glass ceiling.


Conclusion

Affordable childcare has been a topic of discussion for years, and the Australian Government is finally taking action. The Productivity Commission recently outlined recommendations for achieving universal, affordable early childhood education and care (ECEC). These include increasing the Child Care Subsidy (CCS) to cover 100% of costs for families earning up to $80,000 and raising subsidies for families with multiple children. They also propose removing the activity test to ensure that all children, regardless of their parents’ work status, can access subsidised care. These reforms aim not only to boost female workforce participation but also to promote long-term gender equality and economic prosperity.

 

As Australia advances with these initiatives, staying informed is imperative, as affordable childcare could directly shape your future - whether you're planning to start a family or focus on your career. Being aware of these changes is key to breaking the modern glass ceiling and fostering greater opportunities for everyone.


 

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