Childcare in Australia: Costs, Subsidies, and How to Apply (2025-26)

Types of Childcare in Australia

Australia has several types of formal childcare, each designed for different ages and needs. Understanding the differences helps you choose the right option for your family.

Long Day Care (LDC)

Long day care is the most common form of childcare for children aged 0-5 (before school). Centres typically operate from 7:00am to 6:00pm, Monday to Friday. Children attend for a full day or half day. Long day care centres are run by private operators, not-for-profit organisations, or community groups. They follow the national Early Years Learning Framework and employ qualified early childhood educators.

LDC is ideal for working parents who need consistent, full-day care. Fees range from $100-$180 per day depending on the centre and location, before CCS is applied. Inner-city centres in Sydney and Melbourne tend to be at the higher end.

Family Day Care (FDC)

Family day care is childcare provided in an educator's home. A registered family day care educator can look after up to 4 children under school age (plus their own children). FDC tends to be more flexible than centre-based care, with some educators offering before/after standard hours and occasional weekend care.

FDC is typically cheaper than long day care — around $80-$130 per day before CCS. It can feel more home-like and less structured, which some parents prefer for very young children (under 2). All FDC educators must be registered, hold qualifications, and be regularly assessed.

Outside School Hours Care (OSHC)

OSHC provides care for school-aged children (5-12) before school, after school, and during school holidays (vacation care). Before-school care typically runs 7:00-8:30am, and after-school care from 3:00-6:00pm. Fees are lower than full-day care — around $20-$35 per session for before or after school. Vacation care (full days during school holidays) costs $60-$100 per day.

Occasional Care

Occasional care is short-term, irregular care for children who don't attend regular childcare. It's useful for parents who work irregular hours or need care for appointments. Fees are typically $10-$15 per hour. CCS can apply to approved occasional care services.

In-Home Care (Nanny)

In-home care is where an approved educator comes to your home. It's designed for families who can't access other care types — for example, families in remote areas, families with multiple children, or families where a child has a disability. CCS can apply to approved in-home care programs. Private nanny arrangements generally don't qualify for CCS.

How Much Childcare Costs in Australia

Childcare costs vary significantly by state, city, and type of care. Here are average daily fees for long day care (the most common type) by city in 2025-26:

Child Care Subsidy (CCS) Explained

The Child Care Subsidy (CCS) is the Australian Government's main childcare assistance program. It's paid directly to your childcare provider, reducing the fee you pay. The subsidy percentage is based on your combined family income:

CCS is applied to an hourly fee cap, not the actual fee charged. The hourly fee cap for 2025-26 is $13.73 for centre-based day care. If your centre charges more than this per hour, you pay the full difference above the cap plus your CCS gap.

The Activity Test

To receive CCS, both parents (or the single parent) must meet the activity test. This means you must be doing a recognised activity for a minimum number of hours per fortnight. The number of subsidised hours you get depends on your activity level:

Recognised activities include paid work, self-employment, looking for work, volunteering, studying, and training. If one parent works full-time (40+ hours/fortnight) and the other is not working, the lower activity level applies — meaning you may only get 36 subsidised hours per fortnight.

There are exemptions to the activity test for families earning under $80,000 — they receive a minimum of 36 subsidised hours per fortnight regardless of activity level. This is particularly helpful for newly arrived families where one parent is still looking for work.

How to Apply for CCS

Applying for CCS is done through myGov linked to your Centrelink account. Here's the step-by-step process:

1. Create a myGov account at my.gov.au if you don't already have one
2. Link Centrelink to your myGov account. You'll need a Centrelink Reference Number (CRN) — if you don't have one, Centrelink will create one during the CCS claim process
3. Make an online claim for CCS. Go to Services Australia > Payments and claims > Make a claim > Families. Select "Child Care Subsidy"
4. Complete the assessment: You'll need to provide your family income estimate, details of your activity (work, study, etc.), your child's details, and the childcare service's details (the centre's CRN)
5. Confirm your child's enrolment: Your childcare provider must confirm your child's enrolment in the system. This usually happens when you enrol your child at the centre
6. CCS starts: Once approved, CCS is paid directly to your provider and your fees are reduced accordingly

Visa Holder Eligibility for CCS

CCS eligibility depends on your visa type and residency status. Here's who can and can't access CCS:

If you're a permanent resident, you'll need to wait through the 1-year NARWP (Newly Arrived Resident's Waiting Period) before accessing CCS. Read our NARWP guide for full details on waiting periods. If you're a temporary visa holder, you unfortunately cannot access CCS — you'll need to pay full childcare fees or find alternative arrangements.

Managing Childcare Waitlists

Childcare waitlists in Australian cities can be 6-18 months long, particularly in inner-city areas and for children under 2. Here's how to manage this:

• Get on waitlists early: As soon as you know you'll need childcare, register at multiple centres. Many parents register during pregnancy. As a new arrival, register as soon as you arrive — even before your child's birth if you're expecting
• Register at 5-10 centres: Don't just register at one. The more centres you're on the list for, the better your chances of getting a spot quickly
• Consider family day care: FDC often has shorter waitlists than centre-based care and is typically cheaper
• Be flexible with days: You may get offered 2-3 days per week rather than 5. Accept what's offered and add more days as they become available
• Check less popular centres: Centres slightly further from train stations or in less trendy suburbs often have shorter waitlists and lower fees

How to Choose a Childcare Centre

When choosing a centre, consider these factors:

National Quality Standard (NQS) Rating

All Australian childcare services are assessed against the National Quality Standard. Ratings are: Excellent, Exceeding, Meeting, Working Towards, or Significant Improvement Required. Check ratings at ACECQA's register. Aim for centres rated "Meeting" or above.

Educator-to-Child Ratios

Legal minimum ratios are: 1:4 for children 0-24 months, 1:5 for children 24-36 months, and 1:11 for children 3-5 years. Some centres maintain better ratios than the minimum — ask when visiting.

Other Factors

• Location: Near your home or workplace? Consider the daily commute with children
• Hours: Do they open early enough and close late enough for your work schedule?
• Fees and inclusions: Some centres include meals; others charge extra. Factor this into your total cost comparison
• Cultural sensitivity: For migrant families, ask about dietary accommodations, language support, and multicultural programs
• Outdoor space: Look for centres with good outdoor play areas

Frequently Asked Questions

How much does childcare cost after the subsidy?

It depends on your family income. A family earning $100,000 combined might pay around $40-60/day out of pocket for long day care (after CCS covers the rest). A family earning $200,000 might pay $70-90/day. A low-income family earning under $80,000 could pay as little as $10-20/day thanks to the 90% CCS rate. Use our Childcare Calculator for a personalised estimate.

Can I get CCS on a temporary visa?

No. CCS is only available to Australian citizens, permanent residents (after NARWP), and certain NZ citizens. Temporary visa holders (482, 485, 500, 417) are not eligible. If you're on a partner visa (820/309), you may be eligible if your partner is a citizen or permanent resident — check with Centrelink.

How long are childcare waitlists?

Typically 6-18 months in major cities, especially for children under 2. In outer suburbs or regional areas, waitlists can be as short as 1-3 months. Register at multiple centres as early as possible. Family day care often has shorter waitlists.

Is childcare tax deductible in Australia?

No. Childcare fees are not tax deductible in Australia. The government's assistance comes through CCS, which is a direct subsidy applied to your fees, not a tax deduction. However, the work-related nature of childcare means it's factored into CCS eligibility through the activity test.

What happens during school holidays?

For school-aged children, vacation care programs operate during school holidays through OSHC providers. These run as full-day programs with activities and excursions. CCS applies to approved vacation care. Fees are typically $60-$100/day before subsidy. Long day care centres operate year-round (usually closing only for public holidays and a short Christmas/New Year break).

Can grandparents provide childcare and receive CCS?

Not directly. CCS only applies to approved childcare services (centres, family day care, etc.). However, grandparents can become registered family day care educators if they meet the qualifications and registration requirements. Informal care by grandparents does not qualify for CCS.