The new survey of 10,000 children from across the country charts the changing face of Australian families, with more kids in childcare, a high percentage of mothers working, and high computer use among primary school kids.
Also, the results reflect the importance of technology in children's lives.
The researchers found that one in 10 parents are ignoring the advice of experts and allowing seven-year-olds to have a computer in their bedroom.
Kids were found to use computers for homework, but also to watch DVDs and play games.
Diana Smart, general manager of research for the Australian Institute of Family Studies, said that many experts believe that more than 9 and half hours of TV time per week for three to four-year-olds is high level of viewing.
However, it was found that many parents were not worried and only a quarter of parents felt their children should watch less television.
"All of this points to the importance of parental management and monitoring of their children's television watching," The Courier Mail quoted her as saying.
She added: "We know from recent research undertaken with the Smith Family that high levels of television watching among preschool-age children is one of the risk factors in children being less ready for school."
The results come as some experts, such as Dr Aric Sigman, of the British Psychological Society, have called for no child under three to watch TV.