What Does Childcare Cost?
See what you could pay for long day care, and how to make childcare cheaper for your family.
BY HEJIRA CONVERY, KINDICARE
Choosing a childcare centre is a big decision that impacts family life and the family budget.
And although you might be tempted to go with the cheapest option, it’s important to look for value in your prospective childcare services and understand the factors that influence the cost of childcare per day.
This will help you see where savings can be made (starting with the Child Care Subsidy), and where your money will be well spent.
So, what does childcare cost?
Well, childcare services set their own fees.
And although community, council and not-for-profit services are often a bit cheaper than for-profit services, a lot depends on what’s being offered, and prices can vary greatly from place to place.
When we look at long day care, the KindiCare Price Index provides a valuable insight into what childcare costs around the nation, before any Subsidy is applied.
It tells us that the average daily cost of long day care in Australia is $136.15.
The Australian Capital Territory is the most expensive state or territory for long day care, with an average daily fee of $148.60.
While Tasmania is the cheapest, with an average daily fee of $121.40.
Looking at the big cities, you can expect to pay between $150 and $210 per day for long day care in most areas of Sydney, Melbourne and Brisbane.
And there can be big price differences from suburb to suburb, such as when you’re comparing a suburb that’s close to the CBD, versus one that’s further out.
For example,
- In Sydney, the average daily fee is $193 for long day care in Cremorne, compared to $136.94 per day on average in Lidcombe.
- In Melbourne, the average daily fee sits at $178.33 in South Bank, versus the $137.77 in Pakenham.
- And in Brisbane, you’ll find that the average daily fee in Camp Hill is $173.75, whereas in Waterford West it’s sitting at $133.21.
Long day cares that are close to the CBD, or in areas where property is more expensive, tend to have higher fees.
And although you’ll probably pay less for childcare in a regional area, compared to a metropolitan one, cost may not be your main concern.
KindiCare’s Founder, Benjamin Balk, explains that, “Depending on your location, there may not be as many services available in a regional area. And although this won’t necessarily increase pricing, the main challenge is whether you can get in or not.”
There is also a correlation between childcare cost and service quality
Mr Balk explains that, “Centres with a higher KindiCare Rating and an Exceeding National Quality Standard rating, on average, tend to be more expensive than those with a lower KindiCare Rating and a Meeting National Quality Standard or Working Towards National Quality Standard rating.”
And it is important to look for value.
Mr Balk says, “Sometimes, paying the most for childcare doesn’t necessarily mean the best value in terms of the quality that you’re receiving.
“So, it’s helpful to look at the KindiCare Value for Money Rating in a childcare listing to see how much value they’re offering for the price being charged, compared to other services of the same type in the same area.”
Looking for value also means looking at what’s included in the fee being charged
Some long day cares offer an all-inclusive fee structure, with things like meals, linen, nappies, wipes, incursions and excursions included in the daily fee, plus other nice-to-haves, like a parent lounge with free coffee and snacks.
This pricing model offers convenience, but you have to look at each service on its merits, and decide which inclusions matter to you, and whether you’re willing to pay more to make life easy, or are happy with a no frills offering.
There might also be an enrolment incentive or ongoing discount that makes one service more affordable and appealing than another.
For example, if they offer four weeks free, a sibling discount, or a discount for taking extra days.
Most importantly, you need to factor in the Child Care Subsidy
A daily fee of $150 to $210 is daunting when you multiply it by five days, but your bill shock will be lessened when you learn that the full fee isn’t what you actually pay.
Assuming you’re eligible for the Child Care Subsidy, the government will pay a portion of your fees direct to the centre, leaving you to pay the gap between the provider’s fee and your Subsidy amount.
This gap fee means there’s no such thing as free childcare in Australia.
If you get the Child Care Subsidy, you will have to pay something out of your own pocket, but it makes fees for childcare much more manageable.
How much Child Care Subsidy will you actually get?
This depends on your individual circumstances, and you’ll get a Child Care Subsidy percentage that’s based on your family’s income.
This percentage will be between 0% (if you’re a very high income family) and 90% (if you’re bringing in a low income), with a sliding scale between those figures.
It’s also possible to get a higher Child Care Subsidy percentage for one child than another, if you have multiple kids enrolled in early learning, and this can be up to 95%.
To work out your financial assistance in dollars and cents, the government then applies your CCS percentage to whichever of these is lower:
- The hourly fee you’re being charged for childcare, or
- The hourly rate cap for the type of childcare you’re using
As of 5 January 2026, there’s a 3 Day Guarantee which means that all Child Care Subsidy eligible families are entitled to at least 72 hours of subsidised care per fortnight (aka three days per week).
If you and your partner put in more than 48 hours of work or other recognised participation each week, or fit other criteria, you’ll get 100 hours of subsidised care per fortnight (aka five days per week).
The Child Care Subsidy can make a big difference to what you actually pay
So, use a Child Care Subsidy Calculator when searching for childcare to see your estimated fees after the Child Care Subsidy.
And know that sometimes the difference between an amazing service and an average one isn’t actually that much.
For instance, there might only be an $8 dollar difference, after Subsidy, between the high-quality service you really want to enrol with and the more pedestrian option.
Five ways to bring down your childcare costs
Your Subsidy amount, location, childcare choice, and even career, can make a difference to what you pay for long day care.
So, here are five ways that you may be able to lower your childcare costs:
1. Apply for the Child Care Subsidy as soon as you know you’ll be needing childcare
Ideally, you should do this three months before your child starts at their centre.
It also pays to investigate whether you’re eligible for any other financial help, like the Additional Child Care Subsidy.
2. Look for childcare in different locations
As the KindiCare Price Index shows, prices vary from suburb to suburb.
So, look for childcare close to home, as well as close to work.
And instead of being set on one suburb, widen your search parameters.
Know too that if you’re in a regional area where places are limited, you might need to focus less on the cost, and more on securing a spot.
This means getting on a waitlist early, building a rapport with the Centre Director, and proactively staying in touch.
3. Lean in to the preschool/kindergarten funding in your area
There are funded preschool/kindy programs in each state and territory that make a certain number of preschool/kindy hours cheaper, or even free, for ages four and sometimes three.
This means that if you send your preschooler to a long day care that offers a funded preschool/kindy program you can save money on those hours of education and care.
You will then pay an after Subsidy fee for the long day care hours that wrap around the program, reducing costs overall.
Alternatively, a standalone community preschool/kindy will be cheaper than a long day care.
So, if you don’t need a 12 hour session five days a week, there’s the option of enrolling your preschooler in a community preschool/kindy. And you might find that a hybrid arrangement works well, with two or three days there, and the rest at long day care.
4. Work at the long day care your child attends
Childcare providers can choose to offer discounted childcare to employees with children enrolled at the centre they work at.
And although you’ll still have to pay at least 5% of the gap fee, this workforce discount can hugely reduce your out-of-pocket fees, for example by cutting them in half.
5. Salary sacrifice your childcare fees
Assuming your employer agrees, it’s possible to salary sacrifice some or all of your childcare fees to reduce your taxable income.
So, although salary sacrificing won’t lower your fees, it can boost your family budget.
At the end of the day, cost does matter when choosing an early learning service
There are cost of living pressures coming from all directions, and childcare is an ongoing expense that needs to be manageable for your family.
However, try not to make a decision that’s based purely on price point.
Consider the value a service offers when it comes to quality, convenience and cost.
And focus on finding a service that has the right feel, as well as affordable fees.
FAQs
How much does childcare cost per day
According to the KindiCare Price Index, the average daily fee for long day care in Australia is $136.15. The Australian Capital Territory is the most expensive state or territory, and Tasmania is the cheapest. In most areas of Sydney, Melbourne and Brisbane, the average daily fee for long day care is between $150 and $210, before Child Care Subsidy.
How to make childcare more affordable
Apply for the Child Care Subsidy and any other government assistance you are eligible for. Search for childcare in different locations to see how price varies from suburb to suburb. Take advantage of any funded preschool/kindergarten programs, enrolment incentives, or ongoing discounts being offered by a childcare service.
How to find the best childcare near me
Use the free KindiCare App or kindicare.com to search, compare and enquire with childcare services in your local area. Look at the National Quality Standard Rating and KindiCare Rating to compare the quality of prospective services. Enquire about fees and vacancies. Then book a centre visit or tour to see your shortlisted services in person.
