Cost of family daycare vs. other childcare options
There's no getting around it: childcare fees play a big part in deciding where your little one goes. If you're leaning towards family day care, it helps to know how it compares with the other options before you start making calls.
Cost is only part of the picture, of course, so we've also included what you get for your money with each type of care.
At a glance
| Type of care | How it’s usually charged | Average cost | Child Care Subsidy? | Hourly rate cap from 6 July 2026 |
|---|---|---|---|---|
| Family day care | By the hour | $95.45 a day per child | Yes | $14.08 |
| Long day care | Daily session fee | $133.96 a day per child | Yes | $15.19 (below school age) |
| In home care | By the hour | $318.71 a day per family | Yes, if eligible | $41.31 per family |
| Nanny | Hourly wage, plus agency fees if you use one | At least $26.44 an hour (national minimum wage) | No | Not applicable |
| Au pair | Weekly allowance plus board | Varies | No | Not applicable |
| Babysitter | By the hour | Varies | No | Not applicable |
What is family day care?
Family day care is regulated early childhood education and care delivered in an educator's own home. Educators can care for up to seven children at a time, including no more than four preschool age or under, and are registered with an approved family day care service.
How much does family day care cost in Australia?
Family day care fees are set by each educator and service, and many charge by the hour. In its 2023 childcare inquiry, the ACCC found the national average family day care fee was $95.45 a day per child in the September quarter of 2023, compared with $133.96 a day for centre-based care.
Some educators charge more for early mornings, evenings, weekends or overnight care, and some charge extra for meals or nappies. Ask for a full fee schedule so you can compare services fairly. Approved family day care attracts the Child Care Subsidy, and from 6 July 2026 the family day care hourly rate cap is $14.08.
How does the Child Care Subsidy reduce family day care costs?
The Child Care Subsidy pays a percentage of your childcare fees directly to your service, up to an hourly rate cap. The percentage depends on your family income, and from 6 July 2026 families earning up to $88,520 can receive the maximum 90% subsidy.
If your educator charges more than the cap, you'll pay the difference. Under the 3 Day Guarantee, most families can get at least 72 hours of subsidised care a fortnight, and up to 100 hours if each parent does more than 48 hours of work, study or other recognised activity a fortnight.
What are the benefits of family day care?
Besides cost, family day care offers small groups led by one consistent educator. Many families also value the flexibility to negotiate hours and days.
- Personalised care. Small groups mean more individual attention for your child.
- Flexibility. Many educators can work with you on hours and days, including some non-standard hours.
- Mixed-age play. Children learn from older and younger friends, which builds social skills and confidence.
- A homely environment. Children who find bigger settings overwhelming may feel more relaxed in a home.
- Regulated care. Educators work within the National Quality Framework and the National Quality Standard.
“My advice to all parents is to make sure that their child has a preschool experience, as it helps them so much with things like turn taking and social skills.” — Professor Frank Oberklaid OAM, paediatrician
How much does long day care cost compared to family day care?
Long day care usually costs more per day than family day care. The ACCC found centre-based day care averaged $133.96 a day per child in the September quarter of 2023, and most centres charge a full daily session fee even if your child goes home early.
Child care centres are usually open 10 to 12 hours a day, and many include meals and nappies in the fee. Long day care attracts the Child Care Subsidy, and from 6 July 2026 the hourly rate cap is $15.19 for children below school age.
How much does a nanny cost in Australia?
A nanny usually costs more per hour than formal childcare, because you're paying for one-on-one care in your own home and the Child Care Subsidy doesn't apply. Rates vary with experience and how many children they look after.
If you employ a nanny directly, you'll need to pay at least the national minimum wage of $26.44 an hour from 1 July 2026, and agency fees apply if you use an agency. Nanny sharing, where two families split one nanny's time, can bring the cost down considerably.
How much does an au pair cost?
An au pair usually costs less than a nanny, because families provide board and meals alongside a weekly allowance. Au pairs are often young travellers who help with childcare and light housework while living with your family.
Au pairs tend to have less childcare experience than nannies, and the Child Care Subsidy doesn't apply. If you're paying an au pair directly, check your obligations with the Fair Work Ombudsman before you agree on an allowance.
How much does a babysitter cost?
A babysitter is usually paid by the hour for occasional or regular care in your home, and rates vary with experience and the number of children. Babysitters don't attract the Child Care Subsidy, and agencies may charge a booking fee on top. Other than that, babysitters are handy for date nights or the odd late meeting.
Who is eligible for in home care?
In home care is approved childcare delivered in your own home, and it's only available to families who can't use other approved care. To be eligible, you need to qualify for the Child Care Subsidy and meet at least one of these criteria, set out by the Department of Education.
- You work non-standard or variable hours outside normal childcare hours.
- You're geographically isolated from other approved care.
- Your family has complex or challenging needs.
Each state and territory has an In Home Care Support Agency that assesses eligibility and helps match families with services. The ACCC found in home care averaged $318.71 a day per family in the September quarter of 2023, and from 6 July 2026 the hourly rate cap is $41.31 per family.
It's a small but important part of the system. Early Childhood Education Minister Jess Walsh said in 2026, "I know that in-home care is important to the around 800 families who use it and who, for a range of important reasons, can't participate in centre-based care."
How do you work out the true cost of childcare?
To work out the true cost of childcare, compare each option's fees after the Child Care Subsidy, then add any extras you'll pay for separately. A lower daily fee can end up costing more once extras like late fees are added.
The Child Care Subsidy calculator can estimate your out-of-pocket fees for approved care, and our article on the hidden costs of childcare covers the extras that catch families out. When you're ready to compare services, search for family day care near you.
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FAQs
Can you claim the Child Care Subsidy for a nanny?
The Child Care Subsidy can't be claimed for a nanny unless the care is provided through an approved In Home Care service.
Is family day care cheaper for part-time care?
Family day care can be cheaper for part-time care when the educator charges by the hour, because you only pay for the hours your child attends. Check whether there's a minimum session length before you book.
Do family day care fees go up every year?
Family day care fees are reviewed by each educator and service, and many increase them once a year. The Child Care Subsidy hourly rate caps are also indexed each July, which helps offset some of the increase.
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