Why is childcare so much more expensive in Sydney?

Childcare fees in Sydney reflect higher commercial rent, staff wages, and operating costs in one of the world's most expensive cities. Inner-city Sydney centres commonly charge $180–$220/day. However, the Child Care Subsidy reduces the cost gap between cities significantly — a family on the same income will receive the same subsidy rate regardless of location, though the uncapped gap fee is larger for higher-fee centres.

Does the CCS subsidy differ by city?

No — the Child Care Subsidy rate is determined by your combined family income and activity test, not your location. However, the hourly rate cap is set nationally. If your city has higher-fee centres (like inner Sydney), a larger portion of your fees fall above the cap and are paid at full cost. This means high-fee cities have higher effective out-of-pocket costs even at the same subsidy rate.

Is Brisbane significantly cheaper than Sydney for childcare?

On average, yes — Brisbane long day care fees typically run $20–$40 per day less than Sydney. On a 5-day week, this is $100–$200/week less before subsidy. After the CCS, the effective gap is smaller but still meaningful. Brisbane's lower housing costs for centres translate directly into lower fees for families.

What counts as long day care in Australia?

Long day care (LDC) refers to centre-based childcare operating for at least 8 hours per day, typically from around 7am to 6pm. It's the most common form of formal childcare in Australia for children aged 0–5. All approved long day care centres are eligible for the Child Care Subsidy. Unlike family day care (in a home setting), LDC centres must meet national staffing ratios and early childhood curriculum requirements.

How are the after-CCS figures calculated?

The after-CCS daily cost shown assumes a combined family income of $120,000, which attracts approximately 82% CCS on the government's hourly rate cap (≈$12.08/hr = $120.80/10-hour day cap). The CCS is applied to the capped amount — any fees above the cap are paid in full. The figures shown include the gap fee (difference between the actual daily fee and the cap) plus the 18% co-contribution on the capped portion.

🏙️ Childcare Comparison

Childcare Cost by City — Australia 2026

Average long day care fees vary by up to $50 per day across Australian cities. Here's how Sydney, Melbourne, Brisbane, Perth, and Adelaide compare — before and after the Child Care Subsidy.

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Assumptions: Combined family income $120,000 · CCS rate ~82% · 5 days per week · 48 weeks/year

City	Avg daily fee	Range	Weekly (5 days)	Annual (full fee)	After CCS / day	After CCS / year
🔵 Sydney	$175	$140–$220	$875	$42,000	$76	$18,240
🔵 Melbourne	$160	$130–$200	$800	$38,400	$63	$15,120
🟡 Brisbane	$145	$120–$180	$725	$34,800	$50	$12,000
🟡 Perth	$140	$115–$175	$700	$33,600	$46	$11,040
🟢 Adelaide	$130	$110–$165	$650	$31,200	$38	$9,120

🔵 Sydney

Avg daily fee

$175

Range

$140–$220

Weekly (5 days)

$875

Annual (full fee)

$42,000

After CCS / day

$76

After CCS / year

$18,240

Highest fees nationally. Inner-city centres regularly exceed $200/day.

🔵 Melbourne

Avg daily fee

$160

Range

$130–$200

Weekly (5 days)

$800

Annual (full fee)

$38,400

After CCS / day

$63

After CCS / year

$15,120

Similar to Sydney overall; lower in outer suburbs.

🟡 Brisbane

Avg daily fee

$145

Range

$120–$180

Weekly (5 days)

$725

Annual (full fee)

$34,800

After CCS / day

$50

After CCS / year

$12,000

20% cheaper than Sydney on average. Fastest-growing city for new centres.

🟡 Perth

Avg daily fee

$140

Range

$115–$175

Weekly (5 days)

$700

Annual (full fee)

$33,600

After CCS / day

$46

After CCS / year

$11,040

Generally affordable. Strong supply of family day care options.

🟢 Adelaide

Avg daily fee

$130

Range

$110–$165

Weekly (5 days)

$650

Annual (full fee)

$31,200

After CCS / day

$38

After CCS / year

$9,120

Most affordable of the major cities. Fees consistently below the national average.

Average fees are approximate 2025–26 figures for standard long day care. After-CCS figures assume $120,000 combined family income, 10-hour days, and the 2025–26 hourly rate cap of ~$12.08/hr. Your actual cost will vary based on your income, your provider's fees, and your activity test result.

Why do childcare fees vary so much by city?

The main driver of fee variation is commercial real estate costs. A childcare centre in inner Sydney or Melbourne pays 3–5× more per square metre in rent than an equivalent centre in Adelaide or regional Queensland. Staff wages also vary somewhat, and cities with higher demand relative to supply command premium fees. The result: a 5-day week of long day care costs around $225 more per week in Sydney than in Adelaide before the CCS.

After the CCS, the gap narrows — because the hourly rate cap means the subsidy only applies to the first ~$120.80/day, and anything above is always paid in full. This "gap fee" is larger in high-fee cities, meaning the out-of-pocket difference between Sydney and Adelaide after CCS is still approximately $38/day — or $9,100/year for a full-time place.

Regional areas

This comparison covers capital cities. Regional and rural areas in Australia generally have lower childcare fees than capital cities — but also fewer provider options. Supply constraints in regional areas can mean waitlists for subsidised places are longer, and some families in rural areas have limited access to approved care at all, which affects CCS eligibility.

How to use these numbers for planning

These figures are starting points for budgeting. To see your actual out-of-pocket cost based on your income, days per week, and provider fees, use the Return to Work Calculator. It factors in your specific CCS rate, the hourly cap, and your income tax to show your real weekly net outcome from returning to work.

For information on the types of childcare available and how they compare on cost and flexibility, see the Childcare Options comparison.