Households in 15 Victorian suburbs fork out more than 40 per cent of median income on childcare

Households in 15 suburbs across Victoria are spending more than 40 per cent of their median income into childcare. See how much you’ll pay.

EXCLUSIVE: Households in 15 suburbs across Victoria are spending more than 40 per cent of their median income into childcare, adding to mounting cost-of-living pressures.

East Gippsland tops the list, with families spending a staggering 49.1 per cent of their income on care – the highest rate in the state.Close behind are Murray River–Swan Hill (46.3 per cent), Brimbank (43.9 per cent), Moira (43.6 per cent) and Dandenong (43.4 per cent).

The analysis, compiled by iSelect using figures from the Australian Bureau of Statistics and the Department of Education, compares the average cost of 25 hours of daycare per week to the median household income in each area, adjusted for household size.

In contrast, families in Yarra spend the smallest share of their household income on childcare – just 25.3 per cent.Across Australia, 1.4 million children are in approved care receiving government subsidies.

In Victoria, average hourly childcare costs range from $11 to $15, depending on the service and region.

However, The Parenthood chief executive Georgie Dent said families forking out more than half their income on childcare was unsustainable.

She said that even with subsidies, the out-of-pocket costs can feel like a second mortgage.

“In places like the NSW Mid North Coast, families are spending more than 50 per cent of their income on early learning and childcare,” Ms Dent said.

CEO of The Parenthood Georgie Dent. Picture: NewsWire/Martin Ollman

“That level of financial pressure is crushing, and it’s a call to action for policymakers to urgently address the inequalities baked into our childcare system.”

Ms Dent said urgent reforms were needed to fix a system that she claimed was failing too many families – especially those in low-income, regional, and outer suburban areas.

“Ironically, the children who would benefit the most from high-quality early education and care are often the ones most likely to miss out,” she said.

“That’s why we’re calling for two key reforms: a $10 per day cap on fees to make care genuinely affordable, and the establishment of an independent Early Learning Commissioner to oversee safety, quality and accountability across the sector.”As families grapple with the soaring costs, an alternate service has taken off.

NannyGranny is a national babysitting network co-founded by Paige Kilburn and her husband, Warren. Picture: Supplied

NannyGranny, a national babysitting network co-founded by Paige Kilburn and her husband, Warren, connects parents with retired or semi-retired caregivers in their local communities — often at a lower cost.

“Think of our platform like a ‘find-a-flatmate’ model, but for families and caregivers,” she said.

“It’s completely free for NannyGrannies to join, and just $49 for parents to access the network for three months, then $6.70 per month to stay connected.

“And because we operate within local communities, care is more practical, personal, and cost-aligned with the local area.”

Senator Jess Walsh, Minister for Early Childhood Education, said the government was delivering more affordable education for more than one million Australian families, as well as delivering a 15 per cent pay rise to build the early education workforce.

Originally published as Households in 15 Victorian suburbs fork out more than 40 per cent of median income on childcare