Cost of Family Day Care vs. Other Childcare Options
- The Green Elephant
- Jul 8, 2024
- 6 min read
Updated: 6 hours ago
In a rush? Here's a quick rundown.
Childcare options in Australia include family day care ($10-$16/hour), long day care ($100-$250/day), nannies ($30-$50/hour), au pairs, and in-home care — each with different benefits.
The Child Care Subsidy (CCS) can rebate up to 90% of childcare fees for approved providers, depending on your household income and circumstances.
Family day care offers small group sizes, flexible hours, and a home-like environment — and is charged by the hour, so you only pay for hours used.
The right choice depends on your child's needs, your scheduling requirements, location, caregiver qualifications, and overall affordability for your family.
Choosing the right childcare option for your family is one of the biggest decisions you'll make as a parent. Beyond finding a nurturing environment for your child, understanding the costs involved helps you plan and make an informed choice.
In this guide, we'll take you through the various childcare options available in Australia, compare their costs, and explain how the Child Care Subsidy can help reduce your fees.
Family Day Care
Family day care offers a warm, home-like environment where children from birth to 12 years are cared for in the homes of qualified educators. With a maximum capacity of seven children (including only four under school age), family day care allows for personalised attention.
How Family Day Care Costs Are Calculated
Family day care is provided by individual educators who set their own hourly rates.
Typical costs:
Regular bookings: approximately $10-$16 per hour
Casual bookings: up to around $20 per hour
Early morning, late night, or overnight care may have higher rates
Check with individual providers whether meals are included or need to be provided separately, along with extras like nappies or transport.
Benefits of Family Day Care
Small group sizes — Focused attention and personalised care, particularly good for children who don't thrive in larger group settings
Flexibility — Ability to negotiate hours, meals, and specific needs directly with the educator
Comforting atmosphere — Home-like setting that feels like an extended family group
Mixed age groups — Opportunity for children to engage with diverse ages, boosting social skills
Regulated environment — Providers must adhere to government standards and regulations
Long Day Care (Early Learning Centres)
Long day care centres — often called Early Learning Centres (ELCs) — offer full or part-time care for up to 10-12 hours each day for children from birth to school age. ELCs are often purpose-built, offering dedicated indoor and outdoor play areas, and can accommodate larger numbers of children.
Typical costs:
$100-$250 per day
Fees usually include meals and incidentals like nappies
Charged by the day (regardless of hours used)
Long day care centres typically offer structured educational programs aligned with the Early Years Learning Framework, with qualified educators and a focus on school readiness.
Nannies and Au Pairs
Nannies and au pairs provide care within the family home, offering convenience and flexibility.
Nannies
Nannies provide care within the family home, either living separately or in the house. Many have childcare qualifications.
Typical costs:
$30-$50 per hour
Au Pairs
Au pairs live in the family home and provide in-home childcare (sometimes also light housework) in exchange for board and a small allowance. Au pairs are often young people visiting from overseas.
Typical costs:
Entitled to minimum wage ($23.23 per hour) minus board
Both options allow children to be cared for in their own home and for strong bonds to form between carers and children.
Other Childcare Options
In-Home Care
The In Home Care (IHC) program offers eligible families flexible childcare when parents can't access other forms of care due to geographical isolation, unusual work hours, or complex needs.
Typical costs:
$30 per hour upwards (before CCS rebate)
Families must be eligible for the Child Care Subsidy and demonstrate that no other childcare is available or suitable.
Occasional Care
Occasional care centres can be useful for parents who need a few hours of childcare for respite, appointments, or part-time work. These services offer flexibility without requiring regular bookings.
Babysitters
Babysitters can be employed on a regular or casual basis, either directly or through an agency. They may not have formal childcare qualifications.
Typical costs:
$25-$35 per hour
Understanding the Child Care Subsidy
The Child Care Subsidy (CCS) is an Australian Federal Government scheme that can significantly reduce your childcare costs. The CCS pays a rebate of up to 90% of your childcare fees if care is provided by an approved provider.
The rebate amount depends on:
Your household income
How many children are in care
The type of childcare you're using
To be eligible, you'll need to:
Be undertaking an approved activity (work, study, volunteering) or have an exemption
Use an approved childcare provider
You can use the government's Child Care Subsidy Calculator to estimate how much rebate you may be entitled to.
Options for Different Family Situations
For Single Parents
Working single parents often seek childcare that extends beyond the standard workday. Family day care can often provide before and after-hours care, with some educators offering overnight stays. Long day care centres also offer early starts and later finishes.
For some families, having a live-in au pair is a feasible option when additional help is needed with school drop-offs or light housework.
For Low-Income Families
Family day care can be an affordable option for low-income families, as it's charged by the hour — you only pay for hours used. This differs from long day care centres, which often charge for the full day regardless of hours used.
Choosing an approved provider for the Child Care Subsidy can significantly reduce costs. The CCS is calculated on a sliding scale based on family income, with the lowest income families receiving rebates of up to 90%.
Finding the Right Childcare Option for Your Family
The right childcare option is very individual, depending on the needs of both your child and your family.
Consider the following:
Your child's needs — Some children thrive in structured centres and larger social groups, while others find this overwhelming and do better with in-home or smaller group care
Flexible scheduling — Parents may require irregular or after-hours care to fit around work and other commitments. Family day care or in-home care often provide more adaptable hours
Caregiver qualifications and experience — Look for qualifications and a genuine passion for working with children
Location — Choosing childcare that fits smoothly into your daily routine is more convenient and can reduce time children spend away from home
Cost — Affordability is affected by the overall rate, whether you're charged by the hour or per day, and whether Child Care Subsidy rebates are available
Finally, trust your instincts. Visit different childcare settings, observe interactions, and ask questions to ensure you feel comfortable with your choice.
FAQ
How much does childcare cost in Australia?
Costs vary by type: family day care is typically $10-$16 per hour, long day care (ELCs) range from $100-$250 per day, nannies charge $30-$50 per hour, and babysitters $25-$35 per hour. The Child Care Subsidy can rebate up to 90% of fees for approved providers.
What is the Child Care Subsidy and am I eligible?
The Child Care Subsidy (CCS) is a government rebate that covers up to 90% of childcare fees. To be eligible, you need to use an approved provider and be undertaking an approved activity like work, study, or volunteering. The amount depends on your household income and how many children are in care.
What's the difference between family day care and long day care?
Family day care is provided in an educator's home with small groups (maximum 7 children) and is charged by the hour. Long day care centres are purpose-built facilities that accommodate larger groups, offer structured programs, and typically charge by the day regardless of hours used.
Is family day care a good option for low-income families?
Yes, family day care can be very affordable for low-income families because you only pay for hours used (unlike day rates at long day care). Combined with the Child Care Subsidy — which offers up to 90% rebates for lower income families — costs can be significantly reduced.
How do I choose the right childcare for my family?
Consider your child's needs (some thrive in larger groups, others in smaller settings), your scheduling requirements, location convenience, caregiver qualifications, and overall affordability. Visit different settings, ask questions, and trust your instincts about where your child will be happiest.
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