Do neighbourhoods influence how parents and children interact? Direct observations of parent–child interactions within a large Australian study

•594 parents and children completed a play-based observation at home.•Families resided in 148 different postcodes, of varying socioeconomic status.•Observations were rated on parent sensitive responding and parent–child mutuality.•Greater neighbourhood disadvantage was associated with less sensitive responding.•Parenting supports tailored to local community are required.