Families in seven Tasmanian suburbs spend more than 30 per cent of median income on childcare

Families in seven Tasmanian suburbs are spending more than 30 per cent of their median household income on childcare. See how much you’ll pay.

EXCLUSIVE: Families in seven Tasmanian suburbs are spending more than 30 per cent of their median household income on childcare – highlighting growing affordability pressures even after subsidies.

North East tops the state, forking out 38 per cent, followed by Devonport and Burnie–Ulverstone (35 per cent), and Hobart–North West (34.5 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 Hobart Inner spend the smallest share of their household income on childcare – just 23.4 per cent.

Across Australia, 1.4 million children are in approved care receiving government subsidies.

In Tasmania, average hourly childcare costs are among the lowest in the country, ranging from $11 to $12.

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: NCA 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 Families in seven Tasmanian suburbs spend more than 30 per cent of median income on childcare