Childcare in Australia can look expensive at the advertised rate, but the figure that matters to most families is what remains after the Child Care Subsidy (CCS). In the June quarter of 2026, approved care averaged AUD 13.90 an hour nationally, while centre-based day care averaged AUD 14.60 an hour. Eligible families can receive a subsidy against the lower of the service fee or the applicable hourly rate cap, so two families using the same centre can pay very different amounts.
For UK families planning a move to Australia, that difference matters because childcare can affect where you live, how quickly both parents return to work and how much cash you need during the first months in Australia. Fees also vary by care type, location and booked hours, while CCS eligibility depends on your circumstances and residence status.
Last reviewed: 18 September 2026. Childcare rates and subsidy settings change, so check current figures before committing to a provider.
Key Takeaways
- The national average fee for approved childcare was AUD 13.90 an hour in the June quarter of 2026, while centre-based day care averaged AUD 14.60 an hour.
- The Child Care Subsidy can reduce eligible families’ fees substantially because the 2026 to 2027 standard rate starts at 90% for family income up to AUD 88,520 and tapers as income rises.
- From 5 January 2026, the 3 Day Guarantee gives CCS-eligible families at least 72 subsidised hours of care per fortnight, while some families qualify for 100 hours.
- Childcare fees are generally private expenses and aren’t deductible from personal income tax, while qualifying approved childcare is GST-free.
- For relocating families, the practical budget is the gap fee after CCS, plus several weeks of contingency while enrolment and subsidy arrangements settle.
How much does childcare typically cost in Australia?
Childcare fees vary by service, state and the hours you book, but national government data gives a useful starting point. In the June quarter of 2026, approved childcare averaged AUD 13.90 an hour across all care types, so your weekly bill before subsidy depends heavily on how many hours your provider charges rather than simply how many days your child attends.
Centre-based day care is the most relevant benchmark for many working families because it covers longer sessions and is widely available in metropolitan areas. In the June quarter data, centre-based day care averaged AUD 14.60 an hour, family day care AUD 13.95 and outside school hours care AUD 10.05. These are averages rather than quotes, therefore a specific centre in inner Sydney, Melbourne or Canberra can sit well above them.
The table below uses those national hourly averages and illustrates a five-day week using common booked-hour assumptions. It is a planning tool rather than a provider quote.
| Care type | Typical fee before subsidy | Illustrative weekly cost before subsidy | Best suited to |
| Centre-based day care | AUD 14.60 per hour | About AUD 584 for 40 booked hours | Parents needing regular weekday care and long opening hours |
| Family day care | AUD 13.95 per hour | About AUD 558 for 40 booked hours | Families wanting a smaller setting or more flexible arrangements |
| Outside school hours care | AUD 10.05 per hour | About AUD 201 for 20 booked hours | School-age children before and after school |
| In-home care | Provider-specific | Highly variable | Families who meet the programme rules and need care at home |
Figures are indicative and use Australian Government June quarter 2026 fee data. The weekly totals are simple arithmetic illustrations, not provider quotes. Check current provider fees and the Child Care Subsidy rules before budgeting.
Average daily and weekly fees at a glance
A daily fee is usually a booked session rather than a simple hourly total, so centres may charge for ten, eleven or twelve hours even when your child attends for less time. That means comparing two centres only by the headline daily price can be misleading because the session length, meals, nappies and other inclusions may differ.
For budgeting, ask each provider for the daily session length, the hourly equivalent, what is included and whether the fee exceeds the CCS hourly rate cap. Since the subsidy only applies up to the lower of the actual fee or the cap, any amount above the cap remains entirely yours to pay.
Long day care vs family day care: cost comparison
Long day care and family day care can have similar headline hourly fees, but they create different household costs because the session structure and flexibility are different. Centre-based care suits families who need predictable full working days, whereas family day care can be useful when smaller groups or less conventional hours reduce paid time you don’t actually need.
| Factor | Long day care | Family day care | What it means for cost |
| Setting | Purpose-built centre | Registered educator’s home | Overheads and staffing models affect the base fee |
| Group size | Larger, ratio-based rooms | Smaller mixed-age group | Smaller settings can offer flexibility but aren’t automatically cheaper |
| Hours | Usually fixed session windows | Often more flexible by educator | Flexibility can reduce paid unused hours for some families |
| CCS | Subsidy applies to approved care up to the applicable hourly cap | Subsidy applies to approved care up to the applicable hourly cap | Compare the provider fee with the current cap, not just the subsidy percentage |
The better-value option therefore depends on your working pattern. A centre may have a lower hourly fee but charge a long session, while a family day care educator may charge more per hour but let you book closer to the hours you actually use.
Which care type suits which family?
- Centre-based day care works well when both parents have predictable weekday schedules and need dependable opening hours.
- Family day care can suit younger children, shift workers and parents who value smaller groups or more flexible times.
- Outside school hours care is usually the relevant option once children are at school because you are paying for the gaps around the school day rather than a full-day place.
- In-home care is a specialised programme rather than a general nanny subsidy, so families should check the official eligibility rules before assuming it is available.
Childcare rebates and benefits for Australian families
Australia’s main childcare support is the Child Care Subsidy, which is paid to approved services and passed on as a reduction in family fees. The subsidy percentage depends mainly on combined family income, while the number of subsidised hours depends on the current entitlement rules and your circumstances.
For 2026 to 2027, the standard CCS rate is 90% for family income up to AUD 88,520, then generally reduces by one percentage point for each additional AUD 5,000 until it reaches 0% at AUD 538,520. Because the calculation is individual to the household, an official estimate is more useful than a generic percentage.
How the Child Care Subsidy works
CCS is applied to the lower of two figures: the service’s actual hourly fee or the government’s hourly rate cap for that type of care. Your subsidy percentage is then applied to that amount, which means a high-fee provider can leave you with both your normal gap and the entire amount above the cap.
From 5 January 2026, the 3 Day Guarantee replaced the old minimum activity-based entitlement. Eligible families can receive at least 72 subsidised hours per child per fortnight, while some families qualify for 100 hours based on recognised participation, exemptions or other circumstances. The Australian Department of Education explains the 3 Day Guarantee and the current entitlement rules.
How to apply for the Child Care Subsidy
- Create or sign in to your myGov account and link Centrelink.
- Submit a Child Care Subsidy claim with your family income, residence and child details.
- Enrol your child with an approved childcare service.
- Confirm the enrolment details in myGov when they appear.
- Keep your income estimate and family circumstances up to date because they affect the subsidy rate.
- Check your provider statements to make sure the subsidy is being passed on correctly and the remaining gap matches your budget.
Who is eligible, including recent migrants and visa holders?
CCS eligibility isn’t based on being British or Australian alone. The claimant or partner generally needs to meet Australian residence rules, while the child must meet age, immunisation and approved-care conditions.
Permanent residents and some temporary visa holders can qualify, whereas other temporary residents may not. There is no separate newly arrived waiting period for CCS, but you still need to satisfy the residence rules. For that reason, UK families should check their exact visa category with Services Australia’s CCS residence rules before treating the subsidy as guaranteed income relief.
Average daycare and preschool fees across Australian cities
Childcare costs differ between cities, but suburb and provider choice can matter as much as the city itself. Australian Government June quarter 2026 data shows centre-based day care hourly averages ranging from AUD 13.20 in the Northern Territory to AUD 16.50 in the Australian Capital Territory, while the larger mainland states sit closer together.
The table below uses state averages for centre-based day care as a practical city proxy. The after-subsidy figures are simple illustrations based on a ten-hour day and do not account for hourly caps, withholding, higher-rate children or provider-specific sessions.
| City / state proxy | Avg centre-based fee per hour | Illustrative 10-hour day at 50% CCS | Illustrative 10-hour day at 85% CCS |
| Sydney / NSW | AUD 14.85 | About AUD 74.25 | About AUD 22.28 |
| Melbourne / Victoria | AUD 14.65 | About AUD 73.25 | About AUD 21.98 |
| Brisbane / Queensland | AUD 14.15 | About AUD 70.75 | About AUD 21.23 |
| Perth / Western Australia | AUD 14.90 | About AUD 74.50 | About AUD 22.35 |
| Adelaide / South Australia | AUD 14.10 | About AUD 70.50 | About AUD 21.15 |
Illustrative figures use June quarter 2026 state averages and simple 50% and 85% subsidy examples. Your actual CCS is applied under the current hourly caps and household rules, so use an official estimate for a personal figure.
This comparison shows why postcode alone shouldn’t drive the childcare decision. A service with a slightly higher fee may still be better value if it includes meals, offers a shorter session or has availability close to your home and work, whereas a cheaper centre can cost more once commuting time and unused booked hours are added.
Is childcare in Australia tax deductible or subsidised?
Childcare is subsidised for eligible families through CCS, but ordinary childcare fees are generally not deductible from personal income tax because the ATO treats childcare as a private expense. The subsidy rather than an income-tax deduction is therefore the main household support mechanism.
Approved childcare services are generally GST-free, which means GST should not be added in the way it is to many ordinary consumer services. If an employer offers childcare support, salary packaging or an on-site facility, however, the tax treatment can depend on the arrangement, so check the employer’s policy and current ATO guidance rather than assuming every salary-sacrifice scheme delivers the same benefit.
GST on childcare fees
The ATO treats qualifying childcare supplied by an approved provider as GST-free. That reduces the scope for unexpected tax on top of the advertised fee, but it doesn’t change your CCS calculation or eliminate the gap fee.
Salary sacrifice and employer-provided care
Some larger employers offer workplace childcare or family benefits, although these aren’t universal and can have different tax consequences. If you are comparing Australian job offers, therefore, ask about childcare partnerships, corporate priority places and any family benefits alongside salary because they can change the practical value of the package.
Out-of-pocket costs after the childcare subsidy
Your out-of-pocket cost is the provider charge minus the CCS paid on your behalf, plus any amount above the government’s hourly rate cap. Because the subsidy percentage and hourly-cap calculation depend on the CCS rules, the same hypothetical AUD 150 daily fee can produce very different gap payments for two households.
For illustration, suppose a service charges AUD 140 for a ten-hour day and your effective subsidy covers 80% of the eligible fee. Simple arithmetic suggests a AUD 28 gap before the cap is considered, but the CCS is calculated against the lower of the service’s hourly fee or the applicable hourly rate cap, so any excess above the cap increases the real out-of-pocket amount.
That is why the most useful comparison question is not, “What is your daily fee?” but, “What will our expected gap be after CCS for this session?” Ask the provider to show the calculation, then compare that amount across your shortlist.
Private vs community childcare pricing explained
Private and community providers can both participate in the Child Care Subsidy system, so ownership type doesn’t determine whether your fees are subsidised. Prices instead reflect staffing, rent, location, opening hours, facilities, inclusions and the provider’s operating model.
Community and not-for-profit services may reinvest surpluses into staffing or facilities, while private services may offer newer premises, longer hours or bundled extras. Neither model is automatically cheaper, therefore compare the final gap fee, quality rating, staff continuity and practical fit rather than choosing on ownership label alone.
A budgeting guide for childcare expenses
Build your Australian childcare budget from the gap fee outward, because the sticker price is only the starting point. A realistic monthly figure should include the provider gap, days you still pay for when your child is absent, registration or deposit costs, transport and a cash buffer for any period before your CCS claim is fully reflected.
For the wider household budget, compare childcare with rent, groceries and utilities in our cost of living guide.
What drives your childcare bill?
- Care type: centre-based, family day care and outside school hours care use different fee structures and rate caps.
- Your child’s age: younger children require tighter educator-to-child ratios, which can affect provider pricing.
- Hours booked: long sessions can mean paying for time you don’t use.
- Location: inner-city property and staffing costs can push fees higher.
- Provider inclusions: meals, nappies, excursions and supplies can change the real value of a daily fee.
- Combined family income: this is a major input into your CCS percentage.
How to lower your out-of-pocket cost
- Confirm CCS eligibility before you make a long-term budget.
- Compare the gap fee rather than the headline daily fee.
- Ask whether shorter sessions are available if you don’t need a full day.
- Join several waitlists because availability can be more limiting than price.
- Keep your income estimate current so you reduce the risk of reconciliation surprises.
- Ask about sibling policies, included meals and other costs before accepting a place.
For the wider relocation budget, PSS can help you separate one-off moving costs from the expenses that start after arrival. Our international removals cost calculator gives you an early shipping estimate, while childcare can then sit alongside rent, flights and temporary accommodation in the same cash-flow plan.
How childcare costs affect returning to work
Childcare can change the financial value of returning to work, but the right calculation uses net earnings and the after-subsidy gap rather than comparing salary with the full advertised fee. Since CCS is designed to reduce the cost for eligible families, many households find that an extra working day remains worthwhile even when the headline childcare price initially looks high.
Run the decision with your actual take-home pay, commute cost, CCS estimate and provider gap. Then add non-cash factors such as pension or superannuation contributions, career continuity and future salary progression because a short-term weekly calculation can understate the longer-term value of remaining in work.
Most affordable childcare options for babies and infants
The cheapest option isn’t always the provider with the lowest daily fee because infants need longer hours, smaller staff ratios and dependable availability. Family day care can offer flexible value for some households, while centre-based care may be more practical when both parents need full working days and reliable cover.
For a baby, shortlist services that fit your commute first, then compare the CCS gap, session length and inclusions. That sequence reduces the risk of saving a small amount on the fee while creating a daily travel pattern that costs more in time and transport.
Expert Viewpoint: Planning Childcare Costs Before You Relocate
The number UK families should plan around is the out-of-pocket childcare cost after subsidy, not the centre’s advertised daily fee. Because CCS can materially change the result, the same provider can be manageable for one household and expensive for another.
In relocation planning, childcare also needs to start before the flight. Families who join waitlists early, check their visa’s CCS residence position and prepare their myGov or Centrelink steps are less likely to arrive with work dates fixed but no confirmed care. That matters because paying full fees temporarily, extending short-term accommodation or delaying a return to work can cost more than the difference between two centres.
Build the childcare line into the move budget alongside rent and shipping, then keep a short contingency for the first weeks. If you are also pricing the physical move, our Australia removals service explains the door-to-door process so you can plan those one-off costs separately from ongoing family expenses.
Frequently Asked Questions About Childcare Costs in Australia
Can UK families moving to Australia claim the Child Care Subsidy?
Many can, but eligibility depends on residence and visa status rather than nationality. Permanent residents and some temporary visa holders can qualify once the relevant conditions are met, while others cannot. Check your exact visa against Services Australia before building CCS into the household budget.
What is the average out-of-pocket childcare cost per week after the subsidy?
There is no single national out-of-pocket average that applies to every family because the result depends on the provider fee, hourly cap, subsidy percentage and booked hours. Calculate your provider’s expected gap for your household, then multiply it by the days you expect to use each week.
Is childcare in Australia more expensive than in the UK?
The answer depends on your provider, location and subsidy eligibility, so headline fees alone don’t give a fair comparison. Australian CCS can reduce eligible families’ out-of-pocket costs substantially, whereas UK support works differently. Compare net childcare costs alongside local pay, rent and commuting costs before deciding which system costs your family more.
Which Australian city is cheapest for childcare?
No city is consistently cheapest for every family because fees vary substantially by suburb and provider. June quarter 2026 state data shows relatively modest differences across several mainland states, while the ACT averaged higher. Your CCS percentage and the provider’s session structure can matter more than the city average.
Do I still pay for childcare on public holidays and sick days?
Often yes, because many providers charge for a booked place even when the service is closed for a public holiday or your child is absent. CCS currently provides 42 allowable absence days per child per financial year, with additional absences available in specified circumstances, so check both the provider’s fee policy and the current absence rules before enrolling.
Is it worth returning to work after childcare costs in Australia?
For many families it is, but the decision should use take-home pay minus the after-subsidy childcare gap, commuting and other work costs. Also consider superannuation, career continuity and future earning growth, because the value of returning to work is broader than one week’s cash difference.
Plan Your Move to Australia With PSS International Removals
Childcare is an ongoing household cost, whereas the physical relocation is a one-off project that needs its own budget and timetable. Once you know the suburb, likely childcare gap and work start dates, PSS can coordinate UK collection, packing, shipping, customs clearance and final delivery so the move itself doesn’t compete with the first weeks of family setup.
Start with the cost calculator, review Australia shipping, or contact PSS when your dates are taking shape.
This guide provides general relocation and childcare budgeting information, not benefits, tax or migration advice. Child Care Subsidy rates, residence rules and provider fees change. Verify your circumstances with Services Australia, the Australian Department of Education and the ATO before making financial commitments.
For the wider relocation, use our moving checklist, compare shipping to Australia, or contact PSS for a tailored plan.
