What is the cheapest childcare option in Australia?

Family day care is often cheaper than long day care on headline price, while informal care from family may be free or very low-cost. But the cheapest option for your family depends on your out-of-pocket cost after subsidy, not just the advertised fee. To understand how subsidy changes the numbers, read our CCS guide.

How much does childcare cost per day?

Childcare costs vary by provider, location, and care type. As a broad guide, long day care often ranges from about $120 to $180 per day before subsidy, while family day care may sit slightly lower. Your actual cost can be much lower once the Child Care Subsidy is applied.

Is childcare worth it if I only work part-time?

That depends on your income, childcare fees, subsidy rate, tax position, and other work-related costs. In some cases, part-time work still makes financial sense. In others, the short-term gain may be limited even if the long-term career benefits are strong.

Can I get CCS for a nanny?

Usually only if the care is delivered through an approved in-home care arrangement. Most informal nanny arrangements are not automatically eligible for CCS. Check your care type and provider approval status before assuming subsidy will apply.

Should I compare childcare options before deciding whether to return to work?

Yes. Childcare costs are one of the biggest variables in the return-to-work decision. Start by comparing your childcare options, then understand how CCS affects your fees, then model the final outcome with your income and tax position.

📊 Childcare comparison

Childcare Options in Australia: Costs, Subsidies & What's Right for Your Family

Choosing childcare is not just about availability. It is a financial and lifestyle decision that affects your family's income, schedule, and wellbeing. This guide explains the main childcare options in Australia, what they typically cost, how the Child Care Subsidy can reduce your out-of-pocket fees, and how childcare costs affect your decision to return to work.

•compare common childcare options in Australia
•understand typical childcare costs before and after subsidy
•learn how the Child Care Subsidy affects your fees
•work out what childcare means for returning to work

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Start here: Plan your childcare and return-to-work decision

Compare your childcare options

Understand the difference between long day care, family day care, nanny care, and informal care so you can compare the trade-offs for cost, flexibility, and suitability.

Work out your subsidy

The Child Care Subsidy can reduce your childcare costs significantly depending on your family income, activity level, and provider type.

See how the CCS works

Calculate your real financial outcome

Once childcare costs, subsidy, tax, and work-related expenses are factored in, your take-home pay can look very different from your headline salary.

Use the Return to Work Calculator

Types of childcare in Australia

The best childcare option depends on your work pattern, budget, location, and the kind of care you want. For many families, the right choice comes down to a balance of cost, flexibility, convenience, and availability.

Long Day Care

Long day care is centre-based childcare, usually operating across standard workday hours. It is one of the most common options for working parents and typically includes structured routines, early learning programs, and meals or activities depending on the provider.

Typical cost: around $120 to $180 per day before CCS

Family Day Care

Family day care is provided in an educator's home, usually with smaller group sizes than centre-based care. It can offer a more personalised environment and sometimes more flexible hours, depending on the provider.

Typical cost: around $100 to $150 per day before CCS

Nanny or In-Home Care

Nanny or in-home care takes place in your home and can offer the most flexibility. It is often more expensive for one child, but can become more cost-effective for larger families or irregular work schedules.

Typical cost: around $30 to $45 per hour before subsidies or support arrangements

Informal Care

Informal care usually means care provided by grandparents, relatives, or friends. It can be free or lower-cost, but informal arrangements are generally not eligible for CCS unless they sit within an approved care structure.

What does childcare really cost?

Childcare costs vary depending on where you live, the type of care you choose, your provider's fees, and how many days of care your child attends each week. In larger cities, centre-based childcare costs can add up quickly, especially before the Child Care Subsidy is applied.

Headline daily fees only tell part of the story. Your real out-of-pocket cost depends on your eligibility for the Child Care Subsidy (CCS), whether your provider charges above the hourly rate cap, and how many hours of subsidised care your family can access.

For many parents, the more useful question is not just "How much does childcare cost?" but "What will childcare cost me after subsidy, and how does that affect my household finances?"

A provider may charge $150 per day, but your out-of-pocket cost can be much lower after CCS depending on your family circumstances. That is why comparing childcare options without understanding subsidy can lead to the wrong conclusion.

See childcare affordability at common income levels

Childcare cost on $60,000

$60,000 is the kind of income where childcare costs can quickly feel heavy unless CCS, provider choice, and the number of care days are working in your favour.

Childcare cost on $70,000

$70,000 is the kind of income where childcare costs can quickly feel heavy unless CCS, provider choice, and the number of care days are working in your favour.

Childcare cost on $80,000

$80,000 is often the point where childcare starts to feel potentially manageable, but only once CCS, location, and take-home pay are considered together.

Childcare cost on $100,000

$100,000 usually gives more flexibility around childcare decisions, but CCS and provider pricing still make a meaningful difference to the final out-of-pocket result.

Childcare cost on $120,000

$120,000 usually gives more flexibility around childcare decisions, but CCS and provider pricing still make a meaningful difference to the final out-of-pocket result.

Explore childcare cost by days per week

Childcare cost for 2 days a week

A common early part-time pattern for parents returning to work and trying to keep childcare spend below a full three-day schedule.

Childcare cost for 3 days a week

Three days is one of the most practical return-to-work benchmarks because it often balances income, routine, and childcare costs better than either two or five days.

Childcare cost for 5 days a week

This is the full-time childcare benchmark most families compare against when deciding whether both parents will work full time or one parent will reduce hours.

Explore childcare cost by city

Childcare cost in Sydney

Sydney tends to sit at the higher end of childcare fees, especially where provider fees run well above the CCS hourly cap.

Childcare cost in Melbourne

Melbourne childcare costs are often close to Sydney overall, but suburb choice makes a bigger difference than many families expect.

Childcare cost in Brisbane

Brisbane usually sits below Sydney and Melbourne on childcare fees, which can make part-time return-to-work scenarios easier to justify.

Childcare cost in Perth

Perth generally benchmarks as a more manageable childcare market than Sydney or Melbourne, though fees still vary by provider and suburb.

Childcare cost in Adelaide

Adelaide usually sits at the more affordable end of major-city childcare benchmarks, which can materially improve net return-to-work outcomes.

How the Child Care Subsidy (CCS) reduces your fees

The Child Care Subsidy is the Australian Government's main support payment for reducing childcare costs. It is paid directly to approved providers and lowers the amount families pay out of pocket.

•families on lower incomes can receive a higher subsidy rate
•the subsidy rate reduces as family income increases
•the subsidy applies to an hourly rate cap, not necessarily your provider's full fee
•eligibility depends on using approved care and meeting activity requirements

If you are comparing childcare options, understanding subsidy is essential. Two providers with similar advertised fees can produce very different out-of-pocket costs once CCS is factored in.

For a full breakdown of eligibility, subsidy rates, rate caps, and how the calculation works, read our Child Care Subsidy guide.

Once you understand how subsidy changes your childcare costs, the next step is to see how those costs affect your income and real take-home pay after childcare.

Is it worth returning to work after childcare costs?

For many families, this is the real decision. A return to work can improve household income, preserve career momentum, and maintain superannuation contributions, but the short-term financial gain can look much smaller once childcare, tax, transport, and other work-related costs are included.

That is why comparing childcare options in isolation is not enough. You also need to understand what those costs mean for your actual take-home pay.

Use our tool to calculate your return-to-work outcome after parental leave by modelling your childcare costs, subsidy, tax impact, and effective financial outcome.

If you want to zoom back out after that, the cost of raising a child calculator shows where childcare sits inside the longer family-budget picture.

•estimate your real take-home pay after childcare
•compare part-time and full-time return-to-work scenarios
•understand whether the numbers stack up in the short term

How to choose the right childcare option

There is no single best childcare option for every family. The right choice depends on your priorities, your budget, your support network, and how your work arrangements fit around care availability.

•your out-of-pocket cost after CCS
•the flexibility of hours and pickup times
•proximity to home or work
•your work pattern, including part-time or shift work
•educator ratios, learning environment, and routine
•waitlists and local availability
•whether you may combine paid care with family support

For many households, the decision becomes clearer once childcare costs, subsidy, and return-to-work income are considered together rather than separately.

Frequently asked questions about childcare options

Ready to plan your next step?

Use these next tools to understand your childcare costs and what they mean for your finances.

Understand your subsidy

See how CCS works, what affects your subsidy rate, and how much of your childcare fees may be covered.

Calculate your return-to-work outcome

Work out your real take-home pay after childcare, subsidy, tax, and other work-related costs.

See the total child cost

Place childcare into the broader long-term cost of raising a child.

Go back to the baby-planning hub

Move between childcare, subsidy, work, and broader family-cost decisions in one place.

Sources

Services Australia
Services Australia · Official information about Australian family payments and the Child Care Subsidy.
ACECQA
Australian Children's Education & Care Quality Authority · National guidance on approved childcare service types and quality standards.

Methodology

This comparison page reviews the main Australian childcare options by service model, fee range, and how the Child Care Subsidy can affect out-of-pocket costs.

▶Read more

Methodology

List the main approved childcare service types families commonly compare.
Summarise how each option works, who it suits, and typical fee ranges.
Explain the broad role of CCS without treating a single headline subsidy rate as universal.
Link families to the CCS explainer and return-to-work calculator for deeper modelling.

Assumptions

Fee ranges are broad and vary meaningfully by suburb, age group, and provider.
CCS outcomes depend on individual family income, activity test status, and hourly caps.

Limitations

Availability and waitlists vary sharply by area.
A lower sticker price does not always mean lower out-of-pocket cost after subsidy and logistics.