What is included in a childcare daily fee?
Most quality long day care centres in Melbourne operate on an all-inclusive fee model. This typically covers breakfast, morning tea, lunch and afternoon tea, as well as nappies, wipes, sunscreen, hats, excursions, incursions and the full educational program including any kindergarten component.
Some centres charge extras on top of the daily rate. Common add-ons include formula for infants, specialist programs such as music or language classes, late pickup fees and enrolment or administration fees. When comparing fees between centres, always confirm exactly what is included so you are comparing like with like.
Why do fees vary so much between suburbs?
Childcare fees in Melbourne vary significantly depending on several factors. Land and property costs are the largest driver — centres in inner suburbs pay higher rent or mortgage costs, which flow through to daily fees. Centre size and capacity also matter: smaller boutique centres spread fixed costs across fewer children.
Operator type plays a role too. Private for-profit centres, not-for-profit organisations and community-run services each operate under different cost structures. Educator-to-child ratios above the mandated minimum, the breadth of inclusions, and the quality of the educational program all influence pricing.
Importantly, a higher fee does not always mean better quality. The NQS rating assessed by ACECQA is the independent quality benchmark — some of the highest-rated centres in Melbourne charge below-average fees.
How to calculate your out-of-pocket cost
Your out-of-pocket childcare cost depends on the centre's daily fee and your Child Care Subsidy (CCS) entitlement. Here is how to calculate it:
Step 1: Find the centre's full daily fee (listed in the table above or on Starting Blocks).
Step 2: Determine your CCS percentage using the Services Australia CCS estimator, based on your combined family income and activity hours.
Step 3: Calculate your gap fee: daily fee minus (daily fee x CCS percentage).
Step 4: Multiply by the number of days per week to get your weekly cost, then by 52 for your annual cost.
A centre charging $155/day with a family receiving 85% CCS:
Gap fee = $155.00 - ($155.00 x 0.85) = $155.00 - $131.75 = $23.25/day
Weekly (3 days) = $69.75 | Annual = ~$3,627
For a detailed explanation of the Child Care Subsidy including income thresholds, activity tests and how to apply, see our Child Care Subsidy guide.
What is the Child Care Subsidy?
The Child Care Subsidy (CCS) is the Australian Government's primary financial support for families using approved childcare services. It is paid directly to your childcare centre, reducing the amount you pay each day. The subsidy percentage is means-tested based on your combined family income and the number of hours of recognised activity (work, study, volunteering) you undertake.
For full details on eligibility, income thresholds, activity tests and how to apply, see our complete Child Care Subsidy guide for Victoria.
Frequently Asked Questions
The average long day care fee across Melbourne suburbs is approximately $160 per day before the Child Care Subsidy. Fees range from under $130 per day in some outer suburbs like Springvale, Preston and Dandenong to over $190 per day in some inner and premium suburban areas.
Most quality long day care centres include all meals (breakfast, morning tea, lunch and afternoon tea), nappies, wipes, sunscreen, excursions and educational programs in their daily fee. Always confirm inclusions directly with the centre before comparing fees.
The Child Care Subsidy (CCS) is paid directly to your centre and reduces your out-of-pocket cost. The subsidy percentage is means-tested based on your combined family income and activity hours. Most Melbourne families receive between 50% and 90% subsidy. Use the Services Australia CCS estimator to calculate your entitlement.
No. Childcare fees are not tax deductible in Australia. The Child Care Subsidy is the primary government support mechanism for reducing childcare costs.
Some centres do not publicly list their daily fees on Starting Blocks or their own websites. We always recommend contacting the centre directly to confirm current fees before making a decision.
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