NSW 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.

Julie Cross

@juliejourno

2 min read

July 2, 2023 - 1:20PM

News Corp Australia Network

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NSW

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Exclusive: Seven out of the top 10 most expensive suburbs for child care are within 15km of Sydney’s CBD, with one centre charging an eye watering $209 a day.

Only About Children Cammeray charges the most for infants under 12 months in the country, but Edgecliff is officially the most expensive suburb in the state, exclusive data reveals.

Edgecliff parents pay on average $192.50 a day for long day care.

In comparison, Pacific Palms, just south of Forster, is the cheapest suburb in the state with an average fee of $80.50.

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 in Petersham. Picture: Seb Haggett

Georgina Brodie, 39, said her three-year-old daughter Lola’s fees are $165 a day and 10-month old Edward’s are $172.

Her and husband Matthew’s $1000 a week out-of-pocket childcare costs should reduce to around $800 when the changes come in.

However, Ms Brodie said because their fees are higher than the subsidy cap, they will have to stomach any further increases.

“We are being really frugal because we expect fee increases in January,” Ms Brodie, who works in PR, said.

“I’ve compressed my work days into four to save a day of childcare and we’ve cancelled subscriptions, including Netflix and our gym memberships.”

Georgina Brodie children, Lola, 3, and Edward, 10 months. Picture: Justin Lloyd

Ms Brodie says her family is being frugal in case fees increase again. Picture: Justin Lloyd

Education Minister 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.

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), whose centre at Cammeray, Sydney,

is situated on the top two floors of a shopping centre, said as a high end provider it needed to retain the best staff and wages have risen at “unprecedented levels”.