Childcare - How Much Do You Pay?

Lord Fart Bucket on 21/03/2018 - 09:30
Last edited 12/01/2020 - 15:33 by 1 other user

Morning OzB.

What brought this question on? A fee increase letter. I will now be charged $109 per day for childcare for my 4 year old (Parramatta NSW area).

Of course, there's little real justification in the letter… I know the staff aren't getting a pay rise. Yes, cost of living (groceries, electricity, etc) has gone up… but it's an increase per child of $10 per day. With over 50 children at this centre and the owner having 4 centres, it's looking like a nice money grab of over $500,000 per year. (50 kids per centre, 5 days per week, 52 weeks a year, 4 centres).

And yes, they do have you by the balls as it is hard to move your kid when he/she has friends there, places are limited, etc.

So, here's my question… how much do you get charged per day (excluding government rebates, etc). How old is your child… and what's the postcode of the childcare centre?

Financial Childcare

Comments

    • MessyG on 23/03/2018 - 12:56

      We all got sick a lot for about a year, and intermittently for the following year. Since then, everyone around us gets sick and we don't at all. Boss level immunity achieved. My brothers kids who are now in school were in daycare and never get sick either, apparently all the kids who were kept at home miss a fair amount of school while they catch up on their illnesses.

    • roundnumbersonly on 23/03/2018 - 14:30
      +1

      It can be pretty bad when your child is first exposed to the childcare environment. Eventually you (ie, your whole family) will build up an immunity to most of the bugs, but beware of the tummy bugs, as these often come circling around time and time again. I've seen children with runny noses all year round though. I think in the end its better (well for my child) to be at a childcare centre, rather than at home most of the time.

      Also to keep in mind - most childcare centres still require you to pay (for your booked days) even if your child is sick and can't attend.

  • Geryatric on 22/03/2018 - 01:41
    +1

    $165 / day, Sydney

  • wuds on 22/03/2018 - 02:27
    +2

    Why do we have to pay them for public holidays ? The centre has put it as absent for my son on easter holidays.

    • DarkOz on 22/03/2018 - 07:12

      It's part of their business model. There is also a minimum of 2 or 3 days per week depending on which childcare centre. Most choose Wed - Fri as most public holidays are on Mondays.

      • wuds on 23/03/2018 - 00:01

        How come such business model exists. I guess no other business has accounted for such scenarios. I guess no other industry is charging their customers for public holidays.

        My wife works in a childcare. When the attendance is very low the center sends the permanent staff home and deduct those hours from the payslip. Aren't the children already paid the money regardless of they attend or not? I feel it's a business model to maximize your profits. I can't imagine how much profit they make considering the low award wages in the industry.

        • DarkOz on 24/03/2018 - 09:14

          You should ask the Government. I think it's part of the childcare industry policy. I never agree with it and that's why we don't put our kids there on Mondays.

    • UNO on 22/03/2018 - 20:47
      +1

      The centres still have to pay the staff on piblic holidays.

      Otherwise I guess they would just put the daily rate up to cover it.

      • wuds on 22/03/2018 - 23:55

        well, isn't other companies pay employees on public holidays. I think in most of the cases it goes out from the company overhead. I work in consultancy business, our clients do not pay us for working on public holidays, neither do we account for public holidays in our fee proposals. The company still has to pay the employees for public holidays.

  • fozzie on 22/03/2018 - 06:03

    The money can go towards different things:
    Staff training; staff sickness; replacing equipment; investing in new Equipment. Inflation.

    Just hang in their your children will grow before you know. Very expensive that is why I stayed home when my kids were little. I was very lucky that I could.

  • DarkOz on 22/03/2018 - 07:07
    +1

    This is the reason why so many young 4 year olds not ready for Kindy get dumped into Kindy. It's cheap childcare.

    • kiteo on 22/03/2018 - 10:51

      Parents have to be available to handle the odd hours though. Most parents doing pickup at my kindy are stay at home or flexible workers.

  • Duram on 22/03/2018 - 08:00

    12.5 per hour seems cheap? that's before the government rebate?

  • mogy1808 on 22/03/2018 - 08:38

    $95 per day, all included
    Post code 3500

    • mogy1808 on 22/03/2018 - 08:40

      He is 14 months

  • randombrick on 22/03/2018 - 08:39

    $112.50/day for 2 yr old, postcode 313* (melbourne east). Nappies, food and sunscreen included. And this center opened only 6 months back. Childcare center is not part of a chain but the owner has 3-4 other centers. I'm expecting a rate increase next year. There are cheaper <$80-90/day centers run by the council but they have limited spaces and are very difficult to get in. Mainly because priority is given to siblings of attending kids.

  • HeWhoKnows on 22/03/2018 - 08:53
    +1

    Yes, childcare costs are through the roof.
    This is due to the high demand and high compliance costs.
    Thats why parents are creating thier own child care sharing groups.
    Ask around

  • Mister LoLPants on 22/03/2018 - 09:21

    $115/day for a 4yo, western syd. This covers everything and the centre has a higher qualification and staffing ration than the standard.

  • Slippage on 22/03/2018 - 09:40
    +2

    $109/day/child Everything included 2444 We had them in 5 days a week (3 kids)

    $109 day 5 days *3 kids *51 weeks (they only close for 1 a year) $83,385/year less rebate of $22,500 (7,5003) out of pocket $60,885

    Our eldest (twins) have just become able to go to preschool, we looked at public (which is means tested) and it was more than childcare for us. So we have gone private route which is only $30/day. Wife and I have also negotiated to have every 2nd Friday off (alternate to each other, hours made up during week) so we only need 4 days. We use our A/L + Work from home to cover the school holidays

    ($30 day *3 days *2 kids *39 weeks + $109 day *1 days *2 kids *51 weeks)+($109 day *4 days *1 kids *51 weeks)-rebates = OOP $26,717

    Child care is bloody expensive and has prevented us from holidays/buying a house/eating out alot/fancy cars, but we choose to have kids and I wouldn't change it for the world. At one point it was costing us money for my wife to go to work (work paid less than childcare costs), but it was important for her to maintain her career, sanity (communicating with adults in a professional environment) and self value (contributing to the family). So we sucked it up for a few years.

    But in saying all that, I think it's an absolute ripoff! and the centre owners are laughing all the way to the bank.

    *once they hit school age, they are going public and wife an I will be: https://i.pinimg.com/originals/91/8e/7a/918e7a39b2d71bd85d3e…

  • TimboAus1234 on 22/03/2018 - 10:10
    +1

    Childcare was way to expensive for us (Twins) so my partner only works on the weekend (hairdresser) and I work Mon-Fri(IT), we had the option of her working full time as well but she enjoys spending time with the kids and takes them to playgroups every day. When she works on a Saturday and sometimes a Sunday, I take them to a playgroup down the road and take them to the park when i get home to give her a bit of peace. We have no help from family so it is very dependent on us it's tough going but I would rather the kids stay home with us and adopt our values then goto childcare. For learning the playgroups are actually really good lots of chances for social interaction and when I put the kids to bed (Twins are 3) I read them number books and sing the ABC's their speech is really good because when im making dinner I talk to them and get them to engage.

  • kiteo on 22/03/2018 - 10:53

    In the leafy eastern suburbs of Melbourne when I was doing research a couple of years ago, child care was all over $100, up to $135. The community centres were the cheapest but there was a year waitlist.

  • thord on 22/03/2018 - 11:52
    +1

    Au Pair

    Why more australian's don't have au pairs is beyond me. Such a good idea and set up.

    Look into it if you have a young kid.

    • Slippage on 22/03/2018 - 17:03

      I don't think you are allowed one, if you are renting?

      • thord on 23/03/2018 - 10:29

        That's ridiculous. There is no rental agreement that would forbid au pairs

        • Slippage on 27/03/2018 - 14:11

          you would have to declare how many permanent occupants are there and their names.

    • MessyG on 23/03/2018 - 12:57

      I love the idea of an au pair but the lack of supervision of the carer bothers me. At least with daycare you have carers watching each other as well as the kids.

      • thord on 23/03/2018 - 15:19

        Well it works well for me. I mean, it's standard practice in a lot of nations, I wouldn't worry too much.

        Australia really lags behind with au pair adoption and the law also makes it mildly annoying in comparison to europe, but compared to childcare it is so much better

        • MessyG on 23/03/2018 - 15:39

          I'm in an au pair group on FB and they all seem lovely but the other thing that puts me off is how to pay them. Most seem to do cash in hand but I have a friend who is a lawyer at Fair Work Australia and tells me it's not on! It always seems so hard to know what to do.

        • gimme on 23/03/2018 - 18:59

          @MissG:

          Yea another box ticking public servant. I don't think there's anything illegal about paying anyone in cash. What they choose to do with that money is their problem.

        • MessyG on 23/03/2018 - 22:08

          @gimme: I think the issue is they're not paying tax, not getting any super etc and are open to exploitation. And what's to stop them if they decide they don't like you from going and reporting their employer? But if you do it 'by the book', it's prohibitively expensive. Can't win!

  • bad hombre on 22/03/2018 - 12:28

    Our eldest is three and a half and goes 3 days a week and costs around $130p/d in Brisbane. We also have a nanny 1 day per week to look after both. Our youngest is 17 months and with grandparents 1 or 2 days a week but not always.

    Once a day care is established and there are waiting lists they will charge whatever they like as they know parents will pay! It is a good business but high staff turnover and requires 70-80% capacity to breakeven.

    • chriskq on 22/03/2018 - 14:29

      how much do you charge the nanny, what are his/her (lets be honest it's a her) hours and responsibilities like?

      • bad hombre on 22/03/2018 - 17:00

        Not sure what you mean by the first part. However, her hours are when required on Mondays. Responsibilities are to play with the kids, read, activities. Lunches are made for them, vehicle provided if they are to be taken to the park and snacks provided. $30p/h.

  • esskay on 22/03/2018 - 12:56
    +1

    $167 per day. 3.5 year old (this includes kindergarten but was the same price before she had kindergarten included). 3143 - inner city prices!

  • chriskq on 22/03/2018 - 14:24
    +1

    $132 per day for a 3yr old (would be $142 for non UNSW employee), food included, nappies not included. Randwick 2031.

  • Boscojack on 22/03/2018 - 15:12

    I pay $8.50 an hour for a family day care service near my house and kids school.I only pay for the hours I book which averages about 9 hours a day depending on my and my husbands work hours. Family day care is not right for all families but I looked around and found an excellent one I am very happy with run by a ex-kindergarten teacher. It doesn't include food or nappies but I prefer to choose my kids food.

    The local childcare centers are between $80-100 a day by comparison but I live in an area with an abundance of childcare options as its not inner city, land is cheap and development is exploding. Postcode is 4300. I will add that although there is an abundance of childcare centers, most of the ones I looked at were pretty average. The couple of ones that look really top notch are hard to get into I am lead to believe.

    • Daabido on 25/03/2018 - 12:55

      Be careful when it comes to choosing schools near 4300. There's one or two good ones and others I wouldn't send my child to.

  • holdfestron on 22/03/2018 - 15:21

    twins. haven't decided which childcare we are going with yet as they are still young and cute. However, in my area, prices ranging from $120-$150 per day per kid ($150 is for the really good one with well-trained educators), and with both of us going to be working full-time soon…future is grim…
    oh postcode 2066 lane cove.

    • virhlpool on 22/03/2018 - 20:38

      Those post codes aren’t good for these things. Businesses assume that you are earning well and try to rip off whever they can.

  • atrorz on 22/03/2018 - 15:40
    +1

    the centres around me in brisbane southside are all around 90-110$ per day, depending if you have 5 days a week or not. In family daycare now, 36$ a day after rebate. Much nicer & don't get sick all the time like we did in the centres.

    Havent been sick from family daycare since starting 6mths ago.

    I factor how often I get sick into how much it's actually costing me, when I'm using sick days left right and centre & unpaid days once my sick leave runs out… We would've blown our 10 days each of sick leave in the first two months at the centre.

    Also she takes off a week or two over christmas and doesn't charge - which is the same time our offices shut down, so that is v handy too. The centre used to charge 75% rate during holidays.

  • The Wololo Wombat on 22/03/2018 - 16:52
    +1

    One parents should stay at home if possible. Tax refund benefits, spouse benefits, child benefits, wallet benefits.

    • MessyG on 23/03/2018 - 12:59
      +1

      Not this spouse. That would have been career suicide. As much as I want to spend a lot of time with my daughter, I always want to secure her future financially. Also if I was home with her day in day out, with no one else around, it wouldn't be good for either of us. She gets the best of me, she gets lots of other kids to play with and learn from, she gets structured activities and she gets a team of adults including me who all reinforce each others rules.

  • [Deactivated] on 22/03/2018 - 17:48
    +4

    We are both working full time and no family in Australia as we migrated here about 5 year ago.
    Because no one can help us to sit with the kids, we have to have them in childcare & afterschool.

    Payments:
    13 March 2018 - 18 March 2018
    * 1 child - $540/week - See image

    31 May 2016 - 5 June 2016
    * 2 children - $1040/week - See image

    Those payments are for around 7 months/year as the CCB/CCR runs in 4 months or so.

    Yes, we pay that much if we want to keep our jobs. It's an absolute abysmal what's happening. We absolutely hate the system. We can't seem to find any other legal alternative.

    • serpserpserp on 22/03/2018 - 19:15

      Nanny. At 1k a week you could employ one.

      • [Deactivated] on 22/03/2018 - 20:21
        +3

        True. We took that into account, but we can't see any benefits for the children, only for the budget.

        Going to childcare teaches children a lot of social skills. Besides that, they absolutely love it.

  • pformag on 22/03/2018 - 18:57

    $52 after government rebate.

  • serpserpserp on 22/03/2018 - 19:14
    +1

    Sounds cheap in Sydney. 2+ year ago I was paying $155 a day for a place in the CBD and I had to bring my own nappies for the kid too.

    • virhlpool on 22/03/2018 - 20:35

      Closer to CBD, higher the rates.

  • [Deactivated] on 22/03/2018 - 20:21
    +1

    $165 per day <3
    $155 per day 3+

    Doesn't include nappies.

    Sydney lower north shore.

    • virhlpool on 22/03/2018 - 20:34
      -2

      You must be a rich person. Good on ya.

      • wuds on 23/03/2018 - 00:13

        Doesn't need to be rich. I paid 150 per day without nappies in Carlingford. Only my self was working in an entry-level job while my partner was looking for work.

        • Punknerd on 24/03/2018 - 00:25
          +1

          You must have had some other type of income or savings to make it work on a medium to long term basis. I take it your partner would have had a reasonable chance of getting a fairly good income for you to be enrolling your kid to 150 bucks a day childcare. Otherwise your finance would be in ruins after a few months. Hint: actual lower income people look for these dodgy (unregistered) child minding single mums, cost like 200 a week. Sure you don't want to leave your kids in those places, but there's a good chance the kids would be worse off if their care cost more than both parents income combined.

        • wuds on 27/03/2018 - 20:55

          @Punknerd: I've had no savings and it was pretty bad. We had no choice with childcare fee as there were no places available in the cheaper once which was around 110 per day. My wife managed to find work after few months but most of her salary went for the childcare fees.

          I've moved to QLD now rates are much better here, less than 100 per day

  • Bonsaichop on 22/03/2018 - 20:29

    If you don't like it, you could always open your own childcare centre and see how easy the 'money grab' is..

    • Salmando on 24/03/2018 - 18:26

      Might buy the animal cannel nearby and repurpose it.
      Sounds like dollars to me.

  • virhlpool on 22/03/2018 - 20:33

    Rebate cap is $7500/year currently. So whatever your yearly gross payment is based on the daily fees that you mentioned, it will be reduced by $7500. It is still very expensive though.

  • cheapismymiddlename on 22/03/2018 - 20:40

    $105 for Kids Club in the ACT, including nappies and food. Not sure if it is worth for both of us to work full time.

    Yes, we need to pay for sick days and public holidays. Expensive childcare, underpaid workers, not motivating people to work > Is there a problem with the system?

    • virhlpool on 22/03/2018 - 20:46
      +2

      They need to simply learn from countries that are known for much cheaper and still better childcare.

  • virhlpool on 22/03/2018 - 20:45
    +3

    I fail to understand why there is no upper cap by the government on childcare fees. If government is subsiding childcare, even though it is not much effective, doesn’t it make more sense to put an upper cap on fees? Otherwise childcare centres do charge as much as they want and rebates just don’t make sense as they end up being too small as a percentage of total fees charged. Isn’t it the first thing that should happen? Giving a free hand to any welfare related business isn’t a wise idea.

    • FiDad on 26/03/2018 - 16:55

      Well, most of the people seemed to have missed this but this has been addressed in the changes coming into effect on 2 july 2018. Now there is a cap for childcare rebate as per below table. Where a child care service charges less than the hourly cap, families will receive their applicable percentage of the actual fee charged. Where a service charges more than the relevant cap, families will receive their applicable percentage of the hourly rate cap. source

      Service Type Maximum hourly rate cap
      Centre Based Day Care (Long Day Care and Occasional Care) $11.55
      Family Day Care $10.70
      Outside School Hours Care (Before, After, and Vacation care) $10.10
      In Home Care $25.00 (per family)

  • srr on 22/03/2018 - 20:56

    135 p/d post code 2138 , food included. I actually liked that center much more then the previous one that was 80 p/d without food post code 2233. Education and physical activity was much better in the expensive one

    Now our children in school and it’s much easier.

  • Quaker on 22/03/2018 - 21:15

    We pay $120 per day for 1 year old - 4121.
    Pretty standard for the area.

  • gimme on 22/03/2018 - 21:46
    +2

    Contraception here I come

  • mrseltel on 22/03/2018 - 22:01

    2603- we pay $127 a day for a 7 mth old. Nappies and food provided by the centre.

  • Tiredman on 22/03/2018 - 22:28

    About $110 and i can't get any rebates. FML.

    • gimme on 22/03/2018 - 23:00

      Just out of interest was that a consideration when you conceived?

  • auslei on 23/03/2018 - 07:07

    $120 for 2.5 yo. though if both parents are working don't you get 50% off? I think the cap of 7000 per year has been increased right? Considering all food, nappies, etc covered and center has to meet compliance it is not too bad. I feel for the carers there, very tough job.

  • Freakycat on 23/03/2018 - 10:07

    Can't you put your 4 years old in nearby public preschool with after care if you need it? I put my son in a preschool for 2nd year for 3 days a week and they charge $45 per day. After care is $11 after rebate. It works out to be a very good solution. The only thing is I need to pack his lunch.

    https://bettereducation.com.au/Preschool/NswGovernmentPresch… for the preschools near Parramatta area. Depends on area, some preschool charge lower per day.

    For the preschools in my area (3 preschools), they only asked me to fill out the form, ask nothing about income. Discount is applied to lower income families, the rest just pay about $45 a day, 9am-3pm.

  • Azrael169 on 23/03/2018 - 12:59

    $230 a week for 4 days of care for a 2 and a half year old. That includes cleaning our house, doing our washing and running out daughter to play groups etc… Our daughter also now speaks several words in French and German. Plus the benefit of 1 on 1 care means she is learning things pretty quick.

    Au Pairs really are the way to go. You can get the occasional dud (out of 6 we have had 1 that wasnt great) but overall positive experience

    • Ruckmauler on 23/03/2018 - 13:34
      +1

      Do you go to an agency or something like that? Who is working for $57.50 a day in Australia??

      • Azrael169 on 24/03/2018 - 02:30

        Use facebook to get them mostly, one from Gumtree. Facebook groups where they are already in Australia makes it easy.

        Most have been from overseas (5 of 7), but managed to get a 18 year old austrlaian girl who was amazing. Now have a elderly australian lady. Au Pairs are amazing

  • Ruckmauler on 23/03/2018 - 13:22

    $151 per day- <2 yo - 3 days a week - includes everything + daily photos

  • ozlab on 23/03/2018 - 14:36

    Change your job that allows you to bring your kid to work or do a work with such flexibility.

    • Lord Fart Bucket on 23/03/2018 - 15:17
      +1

      Not in all instances is that possible…

      • RocketSwitch on 24/03/2018 - 11:52

        Yeah exactly, work forgets life exists.

  • ozzpete on 23/03/2018 - 18:26

    Leave early morning, sneak out bedroom before she wakes up .
    No childcare costs ;) lol.

    • virhlpool on 23/03/2018 - 20:08

      Why not? Who'll keep the child till evening?

  • swilso on 23/03/2018 - 22:50
    +1

    I think I will stop complaining paying $78/day, a toddler and kindergarten(qld). In rural qld

  • mataeka on 24/03/2018 - 13:51

    $104 - nappies and food included. Almost 3 year old. Located about 7kms from brisbane Cbd and within the vicinity of the barracks (area tends to have more demand)

  • Salmando on 24/03/2018 - 18:30

    Shit, for $100 bucks a day I'll look after your kid. Food, and Xbox included.

    Edit - any Xbox deals?

  • ttn on 24/03/2018 - 21:15

    No wonder so many people and developers are trying to open up more Childcare centres. I work for an Engineering consultancy in Melbourne and it is amazing the amount of childcare centres just us alone churn through. The majority of them are at least catered for 100+ children too.

  • Bullion78 on 25/03/2018 - 12:20

    I am in shock that people pay 100 bucks a day for childcare. I had no idea it was so insanely expensive. This is coming from somebody that's never given it a thought though as I don't have children.

    • Lord Fart Bucket on 25/03/2018 - 18:56
      +1

      Yeah… the pest part is when you just start… or when there’s a flu going around. You still have to pay… and take time off work as well

  • ozbjunkie on 27/03/2018 - 02:16

    Sending this thread to my girlfriend - see babe, by not having kids we're practically making money!

  • myfuturej on 29/03/2018 - 22:39

    I really cannot understand why childcare is so expensive here in Australia. My friends in JApan said they are paying $300 a month per child. And that includes not only food and nappies but also a BATH and laundry of dirty clothes. My kids go to childcare at most 3 days a week, we pay around $100 per day for both (after the rebate). I would hate to put them more days, because it gets extremely hectic in the evening needing to bathe and feed them, while having to prep dinner. If I could find a centre that actually gives kids a bath and dinner, then I’m open to paying more. For now, stuck working part-time and sometimes home-based, so not really making a lot.

    • SlavOz on 12/01/2020 - 13:27

      Economics. Supply and demand dictates the price. If parents need to leave their kids somewhere locally everyday, they're going to pay pretty much any amount. The price could be doubled and I'm pretty sure most people would still pay it.

      The centres make every effort to exploit the need of parents. Apparently there is a surcharge added on every 5 minutes you are late picking them up, and you also need to pay for public holidays or other days that your child isn't there. All that for the added convenience of bringing endless diseases and sicknesses home with you and watching your child be raised by strangers.

      Honestly, I don't know why people bother so much. Childcare can cost you like 35k a year for a single child. For a two parent household, it almost works out better for one to stay at home. Would you do a job that pays $100k a year for only $65k? I sure as hell wouldn't. Would rather work part time or night shifts.

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