Victoria childcare fees: Compare what you pay to other suburbs

Parents facing soaring childcare fees are being urged to compare costs. See the state’s priciest and cheapest centres.

The state’s top 10 most expensive suburbs for child care are all within 15km of Melbourne’s CBD, with one centre charging an eye watering $189 a day.

Only About Children Camberwell, which has a dedicated numeracy and literacy room, has the highest fees for kids under 12 months in Victoria, while overall the suburb of South Yarra is the most expensive for long day care, with an average fee of $172.75.

In comparison, Marysville, 100km north of the CBD in Yarra Valley, is the cheapest suburb in the state with an average long day care fee of $85.

KindiCare founder Benjamin Balk. Picture: Supplied

Benjamin Balk, founder and CEO of comparison app KindiCare, produced the data and said he expects some figures to increase even further in the next few weeks, as not all childcare centres have updated their fee increases yet.

“The data shows fees are going up across all states and territories, but that parents in Sydney and Melbourne are being slugged the hardest,” Mr Balk said.

“Even in Queensland, we are seeing boutique centres charging $200 a day.”

He said he could see why some parents are cynical about some of the high mid-year fee rises coinciding with subsidy increases, but the majority of providers he’s spoken to are just trying to cover costs.

Chief executive of campaign group Parenthood Georgie Dent said fee increases of between seven and nine per cent are reasonable.

“Fee increases in this vicinity mean that almost all families will still be better off when the changes kick in,” Ms Dent wrote in a letter to supporters.

“But providers squeezing parents by putting fees up by more than 10 per cent is beyond the pale.”

Chief executive of campaign group Parenthood Georgie Dent with Prime Minister Anthony Albanese. Picture: Seb Haggett

Mum-of-two and interior designer Lathika Nair, 43, said she found childcare fees so expensive that when she trialled an additional day of child care for her son, Rishaan, four, she cancelled because the costs spiralled.

She said like everyone the cost of living crisis has meant her family has had to tighten its belt.

“We’ve been trying to save on electricity and water,” Ms Nair said. “We don’t let the bath run too long.”

Lathika Nair and her son, Rishaan, 4, at Goodstart Clayton. Picture: Jake Nowakowski

She said her fees at Goodstart Clayton are increasing to $147.50 a day in July. She currently pays $203 out of pocket a week, but that will drop to $149 after the subsidy change, meaning she can add on another day to take on more work.

Minister for Education Jason Clare said it was common for childcare centres to increase their fees at this time of year, but under the reforms, most family’s out-of-pocket costs will still go down.

He said the changes will benefit 1.2 million families and for those on a combined income of $80,000 or less, the Child Care Subsidy rate will lift to 90 per cent.

Prime Minister Anthony Albanese and Education Minister Jason Clare at the Merri Community Child Care and Kindergarten on Friday. Picture: Nicki Connolly

Calculations by Goodstart found that at the moment the out-of-pocket costs for their parents on a combined income of $125,000 after they’ve received the subsidy are about $43 a day.

The changes will see that drop to about $27 a day for those parents.

Australia’s competition regulator has also been tasked with investigating factors that drive up fees.

Anna Learmonth, CEO of Only About Children (OAC), responsible for the centre at Camberwell, said as a high end provider it needed to retain the best staff and wages have risen at “unprecedented levels”.

Other major costs include food, rent, energy and cleaning.

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Originally published as Victoria childcare fees: Compare what you pay to other suburbs