Guide
Childcare Costs in Australia 2026
Childcare is one of the biggest expenses for Australian families. This guide breaks down average costs by state and care type, explains the Child Care Subsidy, and helps you estimate what you'll actually pay.
Average Daily Costs by State
Daily fees vary significantly by location, with capital cities generally more expensive than regional areas. These are approximate ranges based on 2025–2026 data.
| State | Long Day Care | Family Day Care | OSHC (per session) |
|---|---|---|---|
| NSW | $140–$185 | $120–$155 | $25–$40 |
| VIC | $120–$165 | $110–$140 | $22–$35 |
| QLD | $110–$150 | $100–$130 | $20–$32 |
| SA | $105–$140 | $95–$125 | $18–$30 |
| WA | $110–$155 | $100–$135 | $20–$33 |
| TAS | $100–$135 | $90–$120 | $18–$28 |
| ACT | $130–$175 | $115–$150 | $24–$38 |
| NT | $115–$155 | $105–$135 | $20–$30 |
Costs are per day for long day care and family day care, and per session for OSHC. Actual fees vary by individual centre, suburb, and what's included (e.g. meals, nappies).
Average Costs by Care Type
Long Day Care
National average ~$120/day. Inner-city Sydney and Melbourne at the top end. Meals usually included.
Family Day Care
Typically 10–20% cheaper than long day care. Meals may or may not be included.
OSHC
Before school and after school sessions. Vacation care is typically $60–$90/day.
Preschool
Government-funded 15hrs/week often free. Additional hours or private programs incur fees.
Child Care Subsidy (CCS) Explained
The Child Care Subsidy is the Australian Government's main way of helping families with childcare costs. It's paid directly to your childcare provider, reducing the amount you pay out of pocket.
Who's Eligible?
You (or your partner) must meet all of these requirements:
- Care for a child aged 13 or under (or 18 if the child has a disability)
- Use an approved childcare service
- Be an Australian resident
- Meet the activity test (work, study, volunteering, or looking for work)
- Earn less than $543,958 combined family income per year
How Much Subsidy Will You Get?
Your CCS percentage depends on your combined family income. The subsidy is applied to each hour of care, up to an hourly rate cap set by the government.
| Combined Family Income | CCS Rate | Example ($140/day fee) |
|---|---|---|
| Up to $83,280 | 90% | $140/day → $14/day out of pocket |
| $83,280 – $113,280 | 90% → 85% | Tapers down by 1% per $5,000 |
| $113,280 – $183,280 | 85% → 50% | $140/day → $42–$70/day out of pocket |
| $183,280 – $353,680 | 50% → 20% | $140/day → $70–$112/day out of pocket |
| $353,680 – $543,958 | 20% → 0% | Tapers to zero |
| Over $543,958 | 0% | No subsidy — full fee payable |
Income thresholds are for 2024–25. They are indexed annually. The hourly rate cap for centre-based day care is $15.60/hour (2026).
The Activity Test
The number of subsidised hours you receive depends on how many hours of recognised activity you and your partner do per fortnight. Activities include paid work, study, training, volunteering, and actively looking for work.
| Activity Hours (per fortnight) | Maximum Subsidised Hours |
|---|---|
| 0–8 hours | 36 hours (per fortnight) |
| 8–16 hours | 72 hours |
| 16–48 hours | 72 hours |
| More than 48 hours | 100 hours |
If both parents have different activity levels, the lower level determines the subsidised hours. Families earning under $83,280 get 36 subsidised hours regardless of activity.
Worked Examples
Here's what childcare might actually cost your family after the CCS is applied.
Family A — Dual Income, $120k Combined
Family B — Single Income, $70k
Family C — Dual Income, $200k Combined
Use our CCS Calculator to estimate your family's costs.
Tips to Reduce Childcare Costs
- Maximise your CCS — Make sure you're claiming all eligible activity hours. Study, volunteering, and job searching all count.
- Consider family day care — Often 10–20% cheaper than centre-based care with equivalent quality. See our types of childcare guide.
- Use free preschool hours — Most states fund 15 hours/week for 4-year-olds. Combine with other care to reduce costs.
- Check what's included — A centre that includes meals, nappies, and sunscreen in the fee may be cheaper overall than one with a lower headline rate.
- Negotiate start days — Mid-week days (Tue/Wed/Thu) are often easier to get and sometimes cheaper at smaller centres.
- Claim the right tax offsets — While CCS isn't taxable, make sure your income estimate is accurate to avoid an end-of-year debt.
Calculate Your Childcare Costs
Use our free calculator to estimate your Child Care Subsidy and out-of-pocket costs.
CCS Calculator