More than a quarter (28 per cent) of Australians think organised summer sport is a luxury only some can afford, with 36 per cent worried cost pressures are keeping kids indoors instead of playing.
Charity organisation Good 360 Australia's research paints a concerning picture, with one in seven families unable to afford items for their family to participate in sport or other outdoor activities.
Expensive registration fees, largely driven by increasing insurance premiums, and pricey sporting equipment are unaffordable for many families, preventing their kids from participating.
Good360's government and philanthropy head Susan Wallis said the data was "heartbreaking", adding sport was not a luxury but something everyone deserved to be part of.
"Play poverty is a hidden crisis which affects people's wellbeing in so many ways," she said.
"No one should have to choose between playing or affording other essentials like food or rent … we all know the joy and sense of belonging that play gives children."
The data did not come as a surprise to Play It On founder Theresa Brown, whose organisation recycles sporting goods and uses profits to subsidise sporting club fees for eligible children.
"When we started there were a lot of people who weren't even trying to find the money for the fees because it was too expensive," she told AAP.
"Now there's a whole lot of people too who can't afford the equipment and their kids are not playing because of that."
Ms Brown said Play It On was driven by kids missing out on the opportunity to play and build life skills.
"There's really good research around kids who play sport aged less than 12 being 40 per cent less likely to experience mental health concerns, anxiety and depression as young adults," she told AAP.
"There's social skills as well, and things like teamwork, discipline, resilience from losing - it might not feel relevant to them in the moment, but it helps them in the long run."