New findings show students starting school at an older age are outperforming their younger classmates.
The report, led by the University of New South Wales, shows that 25 per cent of students in New South Wales are starting school later than they are first eligible, and are performing better than their younger peers.
The report shows 25-35 per cent of children from affluent families are likely to be kept at home for an extra year.
However migrant parents and low-income earners are more likely to send their children to school earlier, rather than holding them back.
Experts say this is evidence that the high cost of childcare is leaving parents with no option but to send their children to school early.