nanny vs daycare in australia: costs, CCS, and which is right for you

cost comparison: nanny vs centre

let's start with the raw numbers. a private nanny in australia typically charges between $25 and $40 per hour depending on experience, qualifications, location, and whether they're handling additional duties like cooking or light housework. for a standard 8-to-10-hour day, that's $200 to $400 per day.

centre-based day care fees vary by location but generally range from $90 to $180 per day across australia. metro sydney and melbourne centres sit at the top of that range, while regional centres are often closer to $90 to $120.

the table above tells a clear story. before CCS, a nanny costs roughly 2x to 3x more than a centre. after CCS, the gap blows out to 4x to 10x or more. a family on a combined income of $120,000 receiving 80% CCS might pay $28 per day out-of-pocket at a centre vs $300 for a nanny — that's a difference of over $1,000 per week for a family using 4 days of care.

don't forget employer obligations

if you hire a nanny directly, you are their employer. that means you're responsible for paying superannuation (11.5% in 2026), withholding PAYG tax, providing paid leave entitlements, and taking out workers' compensation insurance. these add roughly 15-20% on top of the hourly rate.

CCS eligibility — the game changer

the Child Care Subsidy is the single biggest factor in the nanny vs centre decision. CCS covers between 24% and 90% of childcare fees (up to the hourly rate cap) for approved care types. the approved types are:

• centre-based day care (long day care)
• family day care
• outside school hours care (OSHC)
• In Home Care (IHC) — government-approved program only

private nannies are not CCS-eligible. this is the critical point. you cannot claim CCS for a nanny you hire yourself, regardless of their qualifications.

what about the In Home Care program?

the government's In Home Care (IHC) program does provide CCS-subsidised care in your home, but it's strictly limited. you may be eligible if:

• you live in a rural or remote area with no nearby centres
• you work non-standard hours (e.g. shift workers, FIFO)
• your child has additional needs or a disability
• you have three or more pre-school-age children

IHC is administered through approved providers — you don't hire the carer directly. places are capped nationally, and waitlists can be long. it's a valuable program for families who qualify, but it's not a general-purpose "nanny subsidy."

socialisation and development

one of the most common concerns parents raise about nannies is socialisation. a child cared for at home by a nanny won't have the daily peer interaction that a childcare centre provides. this matters more as children get older — particularly in the 3-to-5 age group when school readiness skills like sharing, turn-taking, and group learning become important.

that said, socialisation isn't exclusive to centres. a good nanny will take children to playgroups, library storytime, parks, and other activities that provide peer interaction. the difference is that it requires deliberate effort rather than being built into the daily structure.

centres also employ qualified early childhood teachers (mandatory in preschool rooms) who deliver structured educational programs aligned with the Early Years Learning Framework. if your child is 3 or older and heading to school soon, the structured group learning environment of a centre can be a genuine advantage.

flexibility and convenience

this is where nannies genuinely shine. a nanny works around your schedule — early starts, late finishes, variable days. there's no 6pm pickup panic, no centre closure days to navigate, and no frantic calls when your child has a runny nose (centres often send kids home for symptoms that a nanny would manage without blinking).

centres operate on fixed schedules, typically 7am to 6pm on weekdays. late pickup fees ($1-$2 per minute) add up fast. centre closure days (public holidays, staff development days) require backup plans. and the illness policies — while sensible from a public health perspective — mean you'll need a plan B more often than you'd expect.

for families with multiple children, a nanny can be particularly convenient. one carer handles all your kids regardless of age, whereas a centre may have siblings in different rooms with different routines. and critically, the cost of a nanny stays the same whether you have one child or three — while centre fees multiply per child (even with CCS).

when a nanny makes more sense

• you have three or more young children: at $140+ per child per day at a centre, three kids costs $420+/day before CCS. a nanny at $300/day for all three can actually be competitive — and if you qualify for In Home Care, it becomes even more attractive
• you work non-standard hours:if you need care before 7am, after 6pm, or on weekends, most centres can't help. a nanny or a nanny-share arrangement fills this gap
• your child has additional needs:some children thrive with one-on-one attention and a familiar home environment. a nanny can tailor the day entirely to your child's needs
• you're in a remote area:if there's no centre nearby, a nanny (or the approved In Home Care program) may be your only realistic option
• you can do a nanny share: splitting a nanny between two families halves the cost while still offering small-group, flexible care. some families find this is the sweet spot

a note on au pairs

au pairs are sometimes mentioned as a budget alternative to nannies. an au pair is typically a young person from overseas on a Working Holiday visa who provides childcare in exchange for room, board, and a weekly stipend ($200 to $350/week). the total cost can work out to $5 to $10 per hour — significantly cheaper than a professional nanny.

however, au pairs are not regulated childcare workers, don't hold early childhood qualifications, and are not CCS-eligible. they can be great for supplementary care (before/after centre hours, school holidays) but most families wouldn't rely on an au pair as their sole childcare arrangement for very young children.

when centre-based care wins

• CCS makes it dramatically cheaper: for most families with one or two children, a subsidised centre is the clear winner on cost. a family earning $120,000 might pay $25 to $35 per day out-of-pocket at a centre vs $250+ for a nanny
• you value structured early education: centres are required to deliver educational programs under the National Quality Framework, with qualified teachers in preschool rooms. this structured learning environment helps prepare children for school
• socialisation is a priority: daily interaction with a group of same-age peers builds communication, conflict resolution, and social skills that are harder to replicate with a nanny
• you want regulatory oversight:centres are assessed and rated under the National Quality Standard. you can check any centre's rating on the ACECQA register. nannies have no equivalent regulatory framework
• reliability matters: if your nanny is sick, you have no care. a centre always has staff — individual educators may be absent, but the centre stays open. this consistency is underrated
• your child is 3-5 and heading to school: the preschool room experience at a centre — with a qualified teacher, group activities, and school-like routines — is genuinely hard to replicate at home

frequently asked questions