Experts say it's not yet clear what's causing the spike - or how to prevent allergies from occurring.
Childcare worker Lucy Eccles says five years ago, asthma was the most prevalent ailment in young children. Now, that has been overtaken by a wide variety of allergic reactions.
Her workplace has to cater for children suffering from nut, milk, egg and asthma-related allergies.
She tells SBS reporter Cassandra Hill, it can be hard to accommodate every child's dietary requirements.
