Qld’s most expensive suburbs for childcare revealed | List

Eight Brisbane suburbs are in the top 10 most expensive in the state for childcare fees. New research shows average charges now rival those at Queensland’s most elite private school.

Childcare fees in 10 Queensland suburbs topped $135 a day last year with one suburb recording an eye-watering average fee of $146, new data shows.

Comparison website Care for Kids revealed the most expensive suburbs for childcare last year, based on data from February to December, and the suburbs with the largest fee increases.

Eight of the top 10 most expensive were in Brisbane.

However, Harristown (Toowoomba) and Surfers Paradise came in at first and second place, respectively, at $146 and $144.50 per day on average.

A parent with one child enrolled five days a week during school term in Harristown, Surfers Paradise or the Brisbane CBD paid the same in fees (before childcare subsidies) last year as Queensland’s most expensive private school, Brisbane Grammar School. It charges $29,200 per year.

But some individual centres are hitting up parents for as much as $170 a day, equating to a massive $34,000 over a school term.

Government subsidies change in March, with parents who have more than one child under five now eligible for larger subsidies.

The subsidy scheme is also affected by family income and other factors but can be well over 30 per cent of total fees.

Oakey, west of Brisbane, recorded the fourth highest price hike in Australia last year — up an average of $40 a day.

Outer Brisbane suburbs Bridgeman Downs and Emu Park were in the top 10 nationally, with both posting average price rises of $37.

Care for Kids Chief Marketing Officer Lauren Simpson said the price rises reflected the increasing demand for education and care staff in outer suburbs and regional areas, following an influx of families fleeing inner-city suburbs as a result of the pandemic.

“A recent study conducted by peak industry bodies found that Australia’s early childhood education and care sector is facing a staffing and skills crisis,’’ Ms Simpson said.

“These workforce shortages are most acute in regional and rural areas due to the inability to recruit suitably qualified staff.

“This growing demand for early education, combined with a decreasing supply of new graduates, presents a number of workforce challenges which reflects the price hikes we’ve seen this year.

“These are average prices, which means the daily fees in some areas could in fact be much higher.

Check out care for kids’ cost of care/subsidy calculator

“However, the accelerated changes to the Child Care Subsidy – including the removal of the cap on financial assistance for working families from December 10 – combined with the second child discount that comes into effect in March, will mean that childcare fees will become more affordable for thousands of families.’’

Not-for-profit group Communify, based in Bardon in Brisbane’s inner-west, said the high prices in the suburb were partly being driven by an over-supply of centres.

As far back as 2018 there were 17 centres under construction or in the planning in the inner-west. Many more have been built since then, or are proposed.

The number of childcare centres has ballooned but occupancy is well down due to Covid and supply issues. File Photo: iStock

Communify’s boutique childcare centre, which takes only 21 children, has vacancies for the first time in many years, whereas parents previously had to wait two years for a place.

“There are eight to 10 centres within a few kilometres of us,’’ Communify CEO Karen Dare said.

“With Covid, families are waiting until school goes back before putting their younger ones into childcare which is making the situation worse.

“I’m concerned some centres might have to close. We’re lucky because we own our own building and many parents will come here after trying the larger centres.’’

Communify is one of the cheapest in Bardon, but still exceeds national standards and enjoys a reputation for excellence among local parents. It charges $115 a day.

Communify CEO Karen Dare

Ms Dare said it could keep its costs lower, despite paying higher wages to its staff and a recent $1.2 million revamp, because it did not pay rent and did not have to make a large profit. It also did not provide lunches.

Some of the nearby centres in Bardon, Ashgrove, Paddington and Milton which have opened in recent years cost millions to build and featured elaborate facilities, including one with an indoor slippery slide.

Some centres have even employed professional chefs in a desperate effort to attract more children.

The Australian Childcare Alliance (ACA)lodged a pre-Budget submission which highlighted its concerns with oversupply driving up costs for families.

“ACA believes that in the early learning sector there is a direct correlation between an oversupply of services and an increase in costs to families, taxpayers and to government, along with a decrease in the quality of education and care,’’ the submission read.

“The early learning sector operates under a unique set of circumstances – it is subsidised by the Federal Government and includes a high level of fixed costs (wages, rent and mortgages).

“As a result, prices are relatively inelastic, and typically do not decrease with increased supply and competition.

“Oversupply is a growing issue in Australia’s early learning sector.

“With few barriers to entry for new or existing providers to set up new centres, the saturation of childcare centres in certain geographic areas has led to many services experiencing lower utilisation or being squeezed out of business.

“If not addressed, oversupply will lead to increased costs for families and an increase in government spending and may have a negative impact on the quality of services in local communities.’’