How Much is Childcare in Australia
- The Green Elephant
- May 9, 2023
- 5 min read
Updated: 26 minutes ago
In a rush? Here's a quick rundown.
Childcare in Australia typically costs $100-$250 per day, depending on location, child's age, service type, and hours of care.
The Child Care Subsidy (CCS) helps eligible families reduce costs — the amount depends on your family income, activity hours, and type of childcare service.
To qualify for CCS, your child must be under 13, attending an approved service, and meet residency and immunisation requirements.
Costs vary based on factors like centre-based vs family day care, major city vs regional location, infant vs preschool age, and full-day vs part-time care.
At some point, you'll likely need to send your little ones to childcare when you or your partner return to work. While this can be quite a financial consideration for working families, the Australian Government aims to ease costs for eligible families with the Child Care Subsidy (CCS).
With so many elements to factor in, it can be tricky to understand exactly how the subsidy works and how much childcare will cost for your family. In this guide, we'll explain how it all works so you can plan for work, life, and the balance between the two.
How Much Does Childcare Cost in Australia?
In Australia, childcare typically costs around $100-$250 per day, depending on various circumstances such as location, the age of your child, and the type of childcare service you choose.
Factors that affect daily costs:
Type of service — Centre-based care and in-home care tend to be pricier than family day care, depending on staff-to-child ratios, resources, and facilities
Location — Services in major cities or high-demand areas may be more expensive than regional or remote areas
Child's age — Some services charge different rates for infants compared to preschool-aged children, as younger children require more intensive care
Days of the week — Some centres charge more for weekends and public holidays
Length of care — Full-day rates may differ from part-time rates, and care outside regular business hours may cost more
Understanding the Child Care Subsidy
The Child Care Subsidy (CCS) is a government program designed to help Australian families with the cost of approved childcare. The amount of subsidy you receive varies depending on several factors.
The subsidy amount depends on:
Your family's combined annual income
The total hours of recognised activity (work, study, training, volunteering)
The type of childcare service you're using
The number of children you have in care
The CCS is paid directly to your childcare provider, reducing the fees you pay out of pocket.
Do I Qualify for the Child Care Subsidy?
To access the Child Care Subsidy, your family will need to meet eligibility requirements.
Your child must:
Be under 13 years old and not attending secondary school (unless there's an exemption in place)
Be attending an approved childcare service
Meet residency requirements
Meet immunisation requirements
You must also:
Be responsible for the care of the child
Meet the activity test (work, study, training, or have an exemption)
Have your combined family income assessed
When these eligibility requirements are met, you can apply for the CCS through your myGov account linked to Centrelink, or by filling out forms through Services Australia.
How to Calculate Your Childcare Costs
A Child Care Subsidy Calculator can help you estimate your out-of-pocket childcare costs so you can plan your family's budget.
To calculate your estimated costs, you'll need:
Your annual family income before tax
Whether you're a single parent or a couple
The age of your child and how many hours they'll attend childcare each week
The type of service you plan to use (centre-based care, family day care, or in-home care)
The estimated weekly fee for the childcare service
The calculator will give you an estimate of the CCS you're eligible for and show you the weekly fee you'll need to pay. While calculations are fairly accurate, it's important to note the results are estimates — your actual costs may vary.
Does the Child Care Subsidy Differ by State?
The Child Care Subsidy is a national program that provides a consistent level of subsidy across Australia. However, the cost of childcare itself can differ from state to state.
Regional variations in cost may be due to:
Availability and accessibility of childcare services in your area
Demand for places in your local area
Operating costs in different regions
Staff availability and wages in different locations
Childcare costs in Sydney and other major cities tend to be higher than the national average due to higher operating costs and demand.
Is Childcare Tax Deductible?
The short answer is no. According to the Australian Tax Office (ATO), you can't claim a deduction for the cost of childcare (including school holiday care and before/after school care) when you're working. It's considered a private expense with no direct connection to earning your income.
However, the government offers other support including:
The Child Care Subsidy (CCS)
Family Tax Benefit
Parenting Payment
These programs help reduce the financial burden of childcare for eligible families.
Tips for Managing Childcare Costs
There are several strategies to help manage your childcare expenses.
Consider your options:
Compare fees across different centres and service types in your area
Look at family day care as a potentially more affordable option
Consider part-time care if your schedule allows
Check if your employer offers childcare benefits or salary packaging options
Maximise your subsidy:
Ensure your activity hours are accurately recorded
Update your income estimate if your circumstances change
Apply for Additional Child Care Subsidy if you're experiencing hardship
Plan ahead:
Factor childcare costs into your family budget before returning to work
Use a subsidy calculator to understand your out-of-pocket costs
Visit centres to understand exactly what's included in their fees
Making an Informed Decision
As you can see, there's no simple answer when considering how much childcare costs in Australia. The right choice for your family depends on your budget, your location, your child's needs, and the quality of care you're looking for.
Your child's wellbeing is the priority, so it's important to make an informed decision that works for both your child and your family. Take the time to visit centres, understand their fees and what's included, and calculate your potential subsidy to get a clear picture of your costs..
FAQ
How much does childcare cost per day in Australia?
Childcare in Australia typically costs $100-$250 per day, depending on factors like location, type of service, your child's age, and hours of care. Major cities like Sydney tend to have higher costs than regional areas.
What is the Child Care Subsidy and how do I apply?
The Child Care Subsidy (CCS) is a government program that helps eligible families with childcare costs. The subsidy is paid directly to your provider, reducing your out-of-pocket fees. You can apply through your myGov account linked to Centrelink.
Who is eligible for the Child Care Subsidy?
To be eligible, your child must be under 13, attending an approved childcare service, and meet residency and immunisation requirements. You must also meet the activity test (work, study, or training) and have your family income assessed.
Is childcare tax deductible in Australia?
No, childcare expenses are not tax deductible according to the ATO. However, the government offers support through the Child Care Subsidy, Family Tax Benefit, and Parenting Payment to help families with costs.
Does the Child Care Subsidy vary by state?
The Child Care Subsidy itself is a national program with consistent rates across Australia. However, childcare fees vary by location — services in major cities and high-demand areas are typically more expensive than regional areas.
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