Average Cost of Childcare
The government has released new childcare data + KindiCare is here to help you compare costs and find a centre your family can afford.
BY HEJIRA CONVERY, KINDICARE
The latest Child Care Subsidy data has been released by the Australian government, and whether you’re paying childcare fees, or weighing up prices at prospective centres, you’ll be interested to know what the average hourly fee amounted to.
So, without further ado, we can tell you that in the December quarter 2024, $13.15 was the average hourly fee for childcare.
This figure represented a rise of 6.6% from the December quarter 2023, and the data shows that centre-based day care was more expensive than other types of approved childcare.
Outside school hours care came in cheapest, with an average hourly fee of $9.40.
Family day care cost $13.30 per hour, on average.
And centre-based day care (including long day care and occasional care) had an average hourly fee of $13.75.
That said, $13.75 was the national average for centre-based care.
Looking at the states and territories individually, the government found that the Northern Territory had the lowest average hourly fee for this kind of care ($12.40), while the Australian Capital Territory had the highest ($15.30).
Western Australia ($14), New South Wales ($13.90) and Victoria ($13.85) all came in above the national average, and the data shows that parts of Canberra, Sydney, Melbourne and Perth typically had the highest hourly fees.
Whether families lived in a ‘cheap’ area or a pricey one, their hourly fees soon added up.
The government found that in the December quarter 2024, children attended 27.4 hours of care per week, on average, with an average attendance of 33.9 hours in centre-based day care.
The government paid $3.89 billion in subsidies to reduce families’ out-of-pocket costs (with 86.2% of this going to families using centre-based care). However, childcare was, and still is, a costly part of the family budget.
All that data reinforces the importance of choosing a childcare centre your family can afford.
This article explains some key considerations when shortlisting and selecting an early learning service – including cost. And along the way, there are several things you can do to crunch (or massage!) the childcare numbers.
For starters, it helps to tell the KindiCare App what you're looking for, so we can match you with childcare options that suit your needs, wants and budget.
To do this, simply fill out the 'My Childcare Preferences' section of Childcare Match, and when it comes to cost, it's particularly helpful to update the Child Care Subsidy settings in your KindiCare account, so you can see the estimated fees after subsidy at each prospective centre.
When you're searching for childcare, you'll also want to look at the Value for Money Rating in each listing.
This tells you whether a childcare service is good value for money for the price they are charging, compared to other services of the same type, in the same area.
And in practice, it means that if you find two centres charging $160 per day, with one rated Excellent Value for Money, and the other Poor, you’ll know which centre to choose!
When you're trying to bring down your future fees, it can also help to expand your childcare search parameters.
Looking at different locations may give you some more affordable options, and this could mean searching for childcare close to home, instead of just close to work.
You can also tap different days, hours and care types into the KindiCare Childcare Comparison Calculator to see what makes the most financial sense for your family.
Also, shop around for a great childcare deal!
In his interview with The Age, KindiCare’s Founder and CEO, Benjamin Balk explains that, “For the first time in years, we’re seeing offers of free days, or free weeks, as providers try to encourage more parents to enrol in their services.”
Depending on which area you’re in, this means you could have some extra buying power, so ask your shortlisted centres whether they have any enrolment incentives, and also keep an eye on KindiCare’s ‘Featured and Special Offers’ section.
And last but not least, know which government assistance you may be entitled to.
The Australian government’s Child Care Subsidy helps a lot of families with childcare fees, but there are other payments available to parents, and you might find that your state government helps with kindy/preschool costs.
Centrelink’s Payment Finder will help you work out if you're eligible for some financial assistance, and it can also help to chat with centre staff.
For example, you might find that your prospective centre is participating in the Victorian government’s Free Kinder program.
