National cost overview
Australian childcare costs vary significantly depending on where you live, the type of care you choose, and your child's age. Understanding the average daily fee in your state is important because it determines your out-of-pocket costs even after the Child Care Subsidy (CCS) is applied.
Here are the national average daily fees for FY 2025–26:
| Care type | National avg / day | National avg / week (5 days) | National avg / year (5 days) |
|---|---|---|---|
| Centre-based day care | $140 | $700 | $33,600 |
| Family day care | $118 | $590 | $28,320 |
| Outside school hours care (OSHC) | $45 | $225 | $10,800 |
Source: ABS/ACCC childcare enquiry data 2024–25. Annual cost calculated over 48 weeks.
State-by-state comparison
The table below shows average daily fees by state for each main care type. Fees are sorted from most expensive to most affordable. The CCS hourly rate cap for centre-based day care (children under school age) is $14.63/hour, equivalent to $146.30 for a 10-hour day — fees above this cap are paid 100% out of pocket.
| State / Territory | Centre-based day care / day | Family day care / day | OSHC / session |
|---|---|---|---|
| ACT— Australian Capital Territory | $175↑ | $140 | $55 |
| NSW— New South Wales | $158↑ | $128 | $50 |
| VIC— Victoria | $148↑ | $122 | $48 |
| QLD— Queensland | $142 | $118 | $45 |
| WA— Western Australia | $135 | $115 | $44 |
| SA— South Australia | $130 | $112 | $43 |
| TAS— Tasmania | $122 | $108 | $40 |
| NT— Northern Territory | $110 | $100 | $38 |
| National average | $140 | $118 | $45 |
↑ Amber = fee exceeds the CCS hourly rate cap for centre-based day care (under school age). Families pay the above-cap amount 100% out of pocket.
Most expensive states: ACT and NSW
Australian Capital Territory (ACT) — $175/day
Canberra consistently tops the nation for childcare fees. At $175/day for centre-based day care, ACT fees are $28.70 above the hourly rate cap — meaning Canberra families pay that gap entirely out of pocket, on top of their normal gap fee. For a family on 5 days per week, that's an extra $143.50/week or around $6,900/year compared to a family whose fee sits under the cap.
The high costs reflect Canberra's high median wages (which drive staff costs), high land prices, and strong demand from a population with above-average household incomes.
New South Wales (NSW) — $158/day
NSW is the second most expensive state, averaging $158/day for centre-based day care — $11.70 above the rate cap. Metro Sydney drives most of this: inner-city and North Shore providers routinely charge $170–$200/day, while western Sydney and regional NSW are closer to $130–$145/day.
Most affordable states: NT and TAS
Northern Territory (NT) — $110/day
The NT has the lowest average fees nationally at $110/day, well below the $146.30 hourly rate cap. Families in the NT benefit from fees that are fully within the cap, meaning the CCS covers the full subsidised percentage without any above-cap top-up. However, the NT has a limited number of approved providers and many families in remote areas have little choice of provider.
Tasmania (TAS) — $122/day
Tasmania averages $122/day, also well under the rate cap. Lower operating costs (land, labour) drive the difference. Hobart has slightly higher fees than regional Tasmania, but even the state's most expensive providers tend to stay under the cap.
Metro vs regional costs
The state averages in the table above mask significant variation within each state. In general:
- Inner-city metro areas (Sydney CBD, Melbourne inner suburbs, Canberra) charge the most — often 20–30% above the state average. High land costs, high staff wages, and strong demand from high-income households all contribute.
- Outer metro and suburban areas typically sit near the state average. Competition between providers is higher, and land costs are more moderate.
- Regional cities (Geelong, Townsville, Toowoomba) are often 5–15% below the state average, reflecting lower operating costs.
- Remote and very remote areas vary widely. Some remote areas have very low fees due to government-subsidised provision; others have limited choices and higher fees to cover the cost of providing care in isolated communities.
Why childcare costs vary so much
Several structural factors drive the difference in fees between states and between providers within the same suburb:
1. Staff-to-child ratios and wage costs
Staff wages typically account for 65–75% of a centre's operating costs. In states with higher median wages (ACT, NSW), staff costs are higher. Mandatory staff-to-child ratios set a floor on staffing: 1 educator per 4 children under 2, 1 per 5 children aged 2–3, and 1 per 11 for preschool-age children. Centres cannot reduce staff below these ratios to cut costs.
2. Land and premises costs
Centre premises are either rented or owned. In inner-city Sydney and Melbourne, commercial rent can be $150,000–$400,000/year for a centre with 60–80 places — a cost that feeds directly into daily fees. Regional and outer-suburban centres face much lower land costs.
3. Provider type (not-for-profit vs private)
The ACCC's 2023 childcare inquiry found that not-for-profit centres charge, on average, about 8% less than for-profit (private) centres. Not-for-profits don't pay dividends to shareholders, so more revenue goes into operating costs and lower fees. See our guide on government vs private childcare for more detail.
4. Quality and NQS rating
Centres rated Exceeding the National Quality Standard or Outstanding often charge more, reflecting higher investment in staff qualifications and programming. However, the correlation is imperfect — manyMeeting NQS centres provide comparable quality at lower fees.
5. Market competition
Areas with many competing providers tend to have lower fees. Areas with a shortage of childcare places — particularly long day care for under-2s — have less competitive pressure, allowing providers to charge premium fees.
Family day care vs centre-based care
Family day care (FDC) is consistently cheaper than centre-based day care in every state. The national average gap is about $22/day ($140 centre vs $118 FDC). Over a year on 3 days per week, that's roughly $3,168 cheaper.
However, the CCS hourly rate cap for family day care is $12.43/hour compared to $14.63/hour for centre-based care (children under school age). This lower cap means the CCS covers a slightly smaller share of the fee, partially offsetting the lower headline price. For a 9-hour family day care day, the cap is $111.87 — meaning most state-average FDC fees are above the cap.
| State | FDC avg fee (9-hr day) | FDC rate cap (9 hrs × $12.43) | Above-cap amount |
|---|---|---|---|
| ACT | $140 | $111.87 | +$28.13 |
| NSW | $128 | $111.87 | +$16.13 |
| VIC | $122 | $111.87 | +$10.13 |
| QLD | $118 | $111.87 | +$6.13 |
| WA | $115 | $111.87 | +$3.13 |
| SA | $112 | $111.87 | +$0.13 |
| TAS | $108 | $111.87 | Under cap |
| NT | $100 | $111.87 | Under cap |
FDC rate cap: $12.43/hour (all ages). Assumes 9-hour care day.
Outside school hours care (OSHC) costs
Outside school hours care — before school, after school, and vacation care — is significantly cheaper than long day care. National average fees range from $38/session in the NT to $55/session in the ACT for a combined before-and-after school day.
The CCS hourly rate cap for OSHC is $12.81/hour — the same as centre-based day care for school-age children. A 4-hour OSHC session (2 hrs before + 2 hrs after) has a cap of $51.24. At the national average of $45/session, most states are close to the cap or slightly above.
For school-age children, OSHC is often the main childcare expense. A family using 5 days per week at the national average spends around $9,000/year (over 40 school weeks) before CCS — substantially less than long day care.
How to reduce your childcare costs
1. Check whether your provider is above the CCS rate cap
If your provider charges above the CCS hourly rate cap, you pay the above-cap amount regardless of your CCS percentage. Switching to a provider at or below the cap — even if their headline fee is similar — can save hundreds or thousands of dollars per year.
2. Consider family day care
Family day care is 15–20% cheaper than centre-based care on average. While the CCS cap is lower, families who value smaller group sizes and a home environment can save significantly. Compare your actual out-of-pocket cost (not just the daily fee) using the calculator.
3. Check whether you qualify for the higher CCS rate
Families with two or more children in approved care, where the youngest is under 6, receive a higher CCS rate on younger children — up to 95% subsidy. This can reduce the gap fee on a younger sibling's care by thousands of dollars per year.
4. Update your income estimate promptly
If your family income drops (job loss, parental leave, reduced hours), update your income estimate with Centrelink immediately. Your CCS percentage will increase from the next fortnight, reducing your gap fee right away rather than waiting for end-of-year reconciliation.
5. Compare not-for-profit providers in your area
Not-for-profit centres average 8% lower fees than private centres. Search the ACECQA National Register to check provider type and quality ratings in your area.
6. Use the 3-day guarantee if you're not working
Since 5 January 2026, all eligible families receive at least 72 subsidised hours per fortnight (about 3 days/week) regardless of activity level. If you were previously receiving fewer subsidised hours, check whether your entitlement has increased. See our 3-Day Guarantee guide for details.