family day care vs centre-based care: which is right for your family?
last updated: february 2026
jessie willcox is a family policy journalist and mum of three from Brisbane. she covers early childhood education, government subsidies, and parenting policy for mini mode.
choosing between family day care and centre-based care is one of the first big decisions parents make — and there's no universally right answer. both are approved for the Child Care Subsidy, both are regulated under the National Quality Framework, and both can provide excellent early education. the difference comes down to environment, ratios, cost, and what suits your child and family setup.
here's a practical comparison to help you weigh up the two options, including real cost differences and how CCS applies to each.
what is family day care?
family day care is run by individual educators in their own homes. each educator is registered with a family day care scheme (an approved provider) and is monitored through regular visits and compliance checks. the educator plans activities, provides meals, and follows the Early Years Learning Framework — just in a home setting rather than a commercial building.
a family day care educator can look after a maximum of 7 children at any one time, with no more than 4 of those being under school age. this includes the educator's own children. the small group size means kids often get more one-on-one attention, and the environment can feel more like being at a relative's house than an institution.
family day care tends to offer more flexible hours. many educators open earlier (6am or even 5:30am) and close later than centres, which makes it popular with shift workers, nurses, and parents with long commutes.
what is centre-based care?
centre-based day care (often called long day care) operates from a purpose-built or converted facility. centres typically have separate rooms for different age groups — a nursery room for babies, a toddler room, and a preschool room for 3-to-5-year-olds. each room has its own team of educators working to mandated ratios.
centres generally run from around 7am to 6pm on weekdays. they employ qualified early childhood teachers (mandatory in preschool rooms) and follow structured educational programs. most centres have dedicated outdoor play spaces, and many offer extras like music, language, or sports programs.
the bigger group setting means children have more peers to socialise with, which can be a plus for building school readiness — but it also means more exposure to illness, especially in the first year.
educator-to-child ratios compared
ratios are one of the biggest practical differences between the two care types.
| care type | ratio | notes |
|---|---|---|
| family day care | 1:7 (max 4 under school age) | includes educator's own children |
| centre — ages 0-2 | 1:4 | nursery/baby room |
| centre — ages 2-3 | 1:5 | toddler room |
| centre — ages 3-5 | 1:11 | preschool room (requires qualified teacher) |
for babies and toddlers, centre ratios are actually tighter than family day care (1:4 vs 1:7). but in practice, family day care educators typically have a mix of ages, so there might be 3 toddlers and 2 school-age children after school — not 7 babies at once.
cost comparison and CCS hourly caps
here's where the detail matters. both care types qualify for the Child Care Subsidy, but the government applies different hourly rate caps to each. this affects how much of your fees the subsidy actually covers.
| family day care | centre-based care | |
|---|---|---|
| typical daily fee | $90 – $130 | $110 – $160+ |
| CCS hourly rate cap (2025-26) | $12.41/hr | $14.63/hr |
| typical session length | 10-12 hours | 10-11 hours |
worked example
family earning $120,000 (CCS rate: 80%), child attends 3 days/week
- family day care: $110/day (11 hrs at $10/hr). CCS = $10.00 x 80% = $8.00/hr x 11 hrs = $88.00 subsidy. Gap = $22.00/day. Weekly gap: $66.00
- centre-based care: $140/day (10 hrs at $14/hr). CCS = $14.00 x 80% = $11.20/hr x 10 hrs = $112.00 subsidy. Gap = $28.00/day. Weekly gap: $84.00
use our Child Care Subsidy calculator to model your exact scenario with both care types.
NQS ratings: what to look for
every approved child care service in Australia is assessed under the National Quality Standard (NQS) and given a rating. the ratings are:
- Excellent — the highest level
- Exceeding NQS — above the benchmark
- Meeting NQS — meets all quality areas
- Working Towards NQS — not yet meeting one or more areas
- Significant Improvement Required — serious concerns
you can check any service's rating on the ACECQA national register. as of late 2025, around 86% of centre-based services are rated Meeting or above, compared to roughly 78% of family day care services. but averages don't tell you much about the specific service you're considering — always check the individual rating.
which is right for your family?
there's no one-size-fits-all. here's a quick guide based on common situations:
- you work shifts or irregular hours: family day care is often better — many educators offer earlier starts, later finishes, and even weekend care
- your child is under 2:both work well, but family day care's smaller group can suit very young children who benefit from a consistent single carer
- you want a structured preschool program: centre-based care is required to have a qualified early childhood teacher in the preschool room — family day care doesn't have this requirement
- budget is tight: family day care is typically cheaper per day, even accounting for the lower CCS hourly cap
- you want maximum socialisation: centres have bigger peer groups, which can help with school transition
many families use both — family day care for the infant years, then transition to a centre for the preschool year before school. others mix the two, using family day care for some days and a centre for others.
frequently asked questions
is family day care cheaper than centre-based care?
usually, yes. daily fees for family day care are typically $90 to $130 vs $110 to $160+ for centres. however, the CCS hourly cap is lower for family day care ($12.41 vs $14.63), so the subsidy covers a smaller amount per hour.
do both types qualify for the Child Care Subsidy?
yes. both family day care and centre-based day care are approved care types under the CCS. your subsidy percentage is the same regardless of care type — only the hourly rate cap differs.
what are the ratios in family day care?
one educator can care for a maximum of 7 children at once, with no more than 4 under school age. this includes the educator's own children if they're present.
can i use both family day care and a centre in the same week?
yes. you can split your child's care across multiple approved services. CCS applies to each separately, using the relevant hourly rate cap for each service type.
next steps
whichever care type you're leaning toward, start by checking the NQS rating of specific services near you, then book tours to see the environment in person. the best choice is the one that fits your child's temperament, your work schedule, and your budget.