For working families with young children, childcare is often the single largest household expense after the mortgage or rent. In many parts of Australia, a full-time long day care place can cost more than $130 per day before any government assistance. Across a year, that adds up to figures that rival private school fees or a second car.
Understanding how childcare pricing works, what subsidies are available, and how to navigate the system can save families thousands of dollars per year. This article breaks it all down with current data.
Average Daily Fees by Childcare Type
Childcare in Australia comes in several forms, each with its own cost structure. The fees below are based on data from the Australian Government’s Child Care Subsidy reports and the Productivity Commission, reflecting 2025-2026 averages.
Long Day Care (LDC)
Long day care centres are the most common form of formal childcare. They cater to children from birth to school age and typically operate from around 7:00 am to 6:00 pm on weekdays.
| State / Territory | Average Daily Fee |
|---|---|
| New South Wales | $130 - $170 |
| Victoria | $120 - $155 |
| Queensland | $115 - $145 |
| Western Australia | $110 - $140 |
| South Australia | $105 - $135 |
| Tasmania | $105 - $130 |
| Northern Territory | $110 - $140 |
| ACT | $135 - $175 |
Inner-city centres in Sydney and Canberra are the most expensive in the country, with some premium centres charging upwards of $200 per day. Outer suburban and regional centres tend to sit at the lower end of the ranges above.
Family Day Care (FDC)
Family day care is provided by registered educators in their own homes, typically caring for small groups of up to four children (or seven with an assistant). It offers a more home-like environment and can be more flexible with hours.
Average daily fees for family day care are generally 10 to 20 per cent lower than long day care, sitting around $90 to $130 per day in most states. The smaller group sizes and home-based setting appeal to families looking for a less institutional environment for babies and toddlers.
Outside School Hours Care (OSHC)
Outside school hours care covers before-school, after-school, and school holiday programs for primary school-aged children. Fees vary significantly between before-school and after-school sessions.
| Session Type | Average Fee |
|---|---|
| Before-school care | $15 - $30 per session |
| After-school care | $25 - $45 per session |
| Vacation care (full day) | $55 - $80 per day |
OSHC is considerably cheaper per session than full-day care, but costs can still add up for families using both before and after-school care five days per week. A typical weekly bill for combined before and after-school care is $200 to $375 before subsidies.
Occasional Care and In-Home Care
Occasional care (sessional, ad hoc care at a centre) and in-home care (a registered educator comes to your home) are less common but serve specific needs. In-home care is typically the most expensive option on a per-hour basis but can be cost-effective for families with multiple children, shift workers, or children with additional needs.
The Child Care Subsidy Explained
The Child Care Subsidy (CCS) is the Australian Government’s primary mechanism for making childcare more affordable. It is paid directly to childcare providers, reducing the gap fee that families need to pay out of pocket.
How It Works
The CCS covers a percentage of the daily fee, up to an hourly fee cap set by the government. The percentage you receive depends on your combined family income.
As of 2025-2026, the CCS rates are approximately:
| Combined Family Income | CCS Percentage |
|---|---|
| Up to $83,280 | 90% |
| $83,281 - $173,163 | 90%, tapering to 0% |
| $173,164 - $353,680 | Tapers from a base amount |
| $353,681 - $530,000 | Reduced rate, tapering further |
| Above $530,000 | 0% |
Note: These thresholds are indexed annually and may have changed. Always check the current rates on the Services Australia website.
The income test is based on your combined family adjusted taxable income from the most recent financial year, as assessed by the ATO.
Hourly Fee Caps
The government sets an hourly fee cap, which is the maximum hourly rate it will subsidise. If your childcare provider charges more than the cap, you pay the difference in full on top of your gap fee.
As of 2025-2026, the hourly fee caps are approximately:
| Care Type | Hourly Fee Cap |
|---|---|
| Centre-based day care | $13.73 |
| Family day care | $12.41 |
| Outside school hours care | $13.19 |
| In-home care | $33.47 (shared across children) |
These caps have been increasing, but in high-cost areas like inner Sydney and Canberra, many centres charge above the cap, meaning families bear a larger out-of-pocket burden.
Activity Test
To receive the maximum hours of subsidised care, at least one parent must meet an activity test. This measures the number of hours per fortnight you spend in recognised activities such as paid work, study, training, volunteering, or looking for work.
| Activity Hours per Fortnight | Maximum Subsidised Hours |
|---|---|
| 8 - 16 hours | 36 hours per fortnight |
| 16 - 48 hours | 72 hours per fortnight |
| More than 48 hours | 100 hours per fortnight |
Families earning under approximately $83,280 are exempt from the activity test and can access up to 36 subsidised hours per fortnight regardless of activity.
Out-of-Pocket Costs After Subsidy
The amount families actually pay depends on their income, the daily fee, and whether the centre charges above the hourly fee cap. Here are some worked examples to illustrate:
Example 1: Middle-Income Family, Moderate Fee
- Combined income: $120,000
- CCS rate: Approximately 72%
- Daily fee: $130 (centre-based, within fee cap)
- Subsidised amount: $93.60
- Out-of-pocket per day: $36.40
- Annual cost (5 days/week, 48 weeks): Approximately $8,736
Example 2: Higher-Income Family, High-Fee Centre
- Combined income: $200,000
- CCS rate: Approximately 42%
- Daily fee: $165 (inner-city centre, above fee cap)
- Subsidised amount: $57.50 (calculated on fee cap, not actual fee)
- Out-of-pocket per day: $107.50
- Annual cost (5 days/week, 48 weeks): Approximately $25,800
Example 3: Lower-Income Family
- Combined income: $75,000
- CCS rate: 90%
- Daily fee: $120 (suburban centre)
- Subsidised amount: $108
- Out-of-pocket per day: $12
- Annual cost (5 days/week, 48 weeks): Approximately $2,880
These examples show how dramatically the out-of-pocket cost varies. For families in the middle-income bracket, childcare for one child can easily consume $8,000 to $15,000 per year after subsidies. For two children in full-time care, the annual cost can exceed the national median mortgage payment.
State-by-State Comparison
Childcare costs vary meaningfully between states and territories, driven by property costs, wage levels, regulatory requirements, and local demand.
Most Expensive
ACT and inner Sydney (NSW) consistently have the highest average daily fees. The ACT’s high average household income and concentration of professional workers creates strong demand, pushing prices up. Inner Sydney faces similar dynamics compounded by extremely high commercial rents.
Mid-Range
Melbourne (VIC), Brisbane (QLD), and Perth (WA) sit in the middle tier. Outer suburban areas in these cities tend to be more affordable, while inner-city and affluent suburbs push toward the higher end.
Most Affordable
South Australia, Tasmania, and regional areas across all states tend to have the lowest average fees. However, availability can be more limited, with longer waitlists and fewer centres to choose from.
The Regional Paradox
Regional and rural families often face a frustrating paradox: fees may be lower in headline terms, but there are fewer centres, longer waitlists, and less flexibility. Some regional areas have such limited childcare supply that families drive 30 minutes or more to access a place, negating any cost savings through time and fuel costs.
The Australian Government has introduced additional subsidies and incentives for childcare providers in regional and remote areas, but supply constraints remain a significant issue.
Tips for Reducing Childcare Costs
While you cannot control the CCS rates or the market price of childcare, there are practical strategies to manage the cost.
Choose the Right Number of Days
Carefully assess how many days of care you actually need. The difference between four and five days per week can save $5,000 to $8,000 per year after subsidies. If one parent can adjust their work schedule to cover a day at home, the savings are substantial.
Consider Family Day Care
Family day care is often 10 to 20 per cent cheaper than centre-based long day care and is still eligible for the CCS. The smaller group sizes can also suit younger children. Check the My Child Care website for registered family day care providers in your area.
Use Grandparents or Informal Care Strategically
If grandparents or other family members can cover one or two days per week, this directly reduces the number of paid care days. This is the most common cost-reduction strategy used by Australian families, according to the Household, Income and Labour Dynamics in Australia (HILDA) Survey.
Optimise Your CCS Entitlement
Ensure your activity test hours are accurately reported to Centrelink. If you are studying, volunteering, or looking for work, these hours count toward your activity test and can unlock additional subsidised hours.
If your family income changes during the year (for example, if one parent takes unpaid leave), update your income estimate with Centrelink to ensure you receive the correct subsidy rate. An outdated income estimate can mean you are under-subsidised during the year (and receive a lump sum at tax time) or over-subsidised (and face a debt).
Check for Employer Salary Packaging
Some employers offer salary packaging or novated arrangements for childcare expenses. While this is not widespread, it is worth checking with your HR department, as it can provide a pre-tax benefit that reduces your effective cost.
Compare Centres on Value, Not Just Price
A slightly more expensive centre with better educator-to-child ratios, included meals, and no extra charges for nappies or sunscreen can work out cheaper than a lower-fee centre with multiple add-ons. When comparing, ask about:
- Whether meals and snacks are included or charged separately
- Whether the centre provides nappies, wipes, and sunscreen or requires you to supply them
- Late pick-up fees (typically $1 to $2 per minute after closing time)
- Booking flexibility: can you swap days, or are you locked into a fixed schedule?
The Waitlist Reality
In many parts of Australia, securing a childcare place is a challenge in itself. Waitlists of 6 to 12 months are common in high-demand suburbs, and some families report waiting up to 18 months for a place at their preferred centre.
When to Start Looking
The general advice is to put your name on waitlists as early as possible, ideally during pregnancy. Some centres accept waitlist registrations from the first trimester. Waitlist fees of $20 to $50 are common and are usually non-refundable.
Waitlist Strategies
- Register at multiple centres: Do not put all your eggs in one basket. Register at three to five centres to improve your chances.
- Be flexible on start dates: Centres often have places available mid-term that they cannot fill because families want a specific start date.
- Consider less popular days: Monday and Friday are the most in-demand days. Tuesday, Wednesday, and Thursday places are often easier to secure.
- Ask about siblings priority: Many centres give priority to families who already have a child enrolled. If you are planning a second child, staying with the same centre can help.
What If You Cannot Get a Place?
If your preferred centres are full, consider family day care, which often has shorter waitlists. In-home care is another option, particularly for families with multiple children or non-standard work hours. As a last resort, nanny sharing (splitting a private nanny with another family) can be cost-effective, though it does not attract CCS unless the nanny is registered under an approved in-home care service.
The Bigger Picture: Is Childcare Worth It Financially?
This is a question many families wrestle with, particularly when one parent’s entire take-home pay (or close to it) goes toward childcare fees. The short-term arithmetic can make it look like a break-even proposition at best.
However, research from the Grattan Institute and others consistently shows that staying in the workforce, even at a short-term financial break-even, has significant long-term benefits. These include:
- Career progression: Breaks from the workforce can set back career development and earning potential by years.
- Superannuation: Continued employment means continued super contributions, which compound significantly over a working lifetime.
- Earnings trajectory: Re-entering the workforce after a long break often means returning at a lower level, with lower pay.
This is a deeply personal decision that goes beyond the numbers, but it is worth considering the long-term picture alongside the immediate cost.
Key Takeaways
- Long day care costs between $105 and $175 per day on average, depending on your state and suburb. Inner-city and ACT centres are the most expensive.
- The Child Care Subsidy covers 0 to 90 per cent of fees depending on family income, paid directly to your provider.
- Out-of-pocket costs for a middle-income family using full-time care for one child typically range from $7,000 to $15,000 per year.
- Family day care is generally cheaper than centre-based care and still attracts the CCS.
- Waitlists are a reality in most urban areas. Register early, at multiple centres, and be flexible on days.
- Reducing from five days to four days of care is one of the most impactful cost-saving moves a family can make.
Disclaimer: This article is for general informational purposes only and does not constitute financial, tax, or professional advice. Childcare fees, Child Care Subsidy rates, income thresholds, and hourly fee caps are subject to change. Always verify current rates with Services Australia and your childcare provider. Your individual circumstances may differ from the examples provided. Consult a qualified financial adviser for advice specific to your situation.