Increases in child care fees have hit local families particularly hard, Federal Member for Barton, Linda Burney said.
"The latest child care data published by the Department of Education shows there has been a 35.9 per cent increase in child care fees since the Coalition was elected in 2013 - regarded as among the highest child care costs in the world," Ms Burney said.
"Fees increased by 4.5 per cent in the 12 months to March 2020 - well above the CPI increase of 2.2 per cent," she said.
"In Kogarah and and Rockdale they increased by 4.4 per cent; in Hurstville 4.2 per cent; and in Canterbury: 3.6 per cent."
Ms Burney was announcing details of Labor's Working Family Child Care Boost which she said will bring child care fee relief and reduce costs for thousands of working families.
"The data confirms Scott Morrison's child care system is failing Australian families underscores the need for a plan for child care," she said.
"Labor is concerned the way the current system is designed means many women actually lose money if they work more than three days a week - meaning many families are having to make a choice between working for nothing or staying home.
"Labor says that this isn't just placing pressure on families, but that it is inhibiting the economic recovery."
Last month, Labor leader Anthony Albanese announced Labor's Working Family Child Care Boost which will bring immediate fee relief to 97 per cent of families.
"Labor's Cheaper Child Care policy will make child care cheaper for 97 per cent of families with children in care, increase the child care subsidy for more than one-million working families, remove the annual cap on child care benefits and prevent out of control fee increases.," Ms Burney said.
"Under Labor's plan a construction worker and a teacher whose daughter is in child care five days a week could save $5,300 a year.
"A police officer and a nurse whose son is in child care three days a week could save $3,200 a year," she said.
Labor will also task the ACCC to design a price regulation mechanism to shed light on costs and fees and drive them down for good, and get the Productivity Commission to conduct a comprehensive review of the sector with the aim of implementing a universal 90 per cent subsidy for all families.
"Labor will make child care cheaper for families," Ms Burney said.
"More affordable childcare is great for kids, great for parents and great for the economy. Investing in education needs to begin with quality childcare."
Labor claims childcare should not be treated as welfare, and lower income workers would receive the biggest benefit from its plan
Prime Minister Scott Morrison defended the lack of focus on child care in the recent federal budget.
There were no major funding commitments or new initiatives for the early education sector, which was among the hardest hit by the coronavirus-induced recession.
Mr Morrison said the government already funded 85 per cent of childcare fees for low and middle income earners and spent $9 billion on the sector each year.