Child Care

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Norm Smith Medallist
Sep 26, 2003
9,375
5,977
Melbourne
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Lots of variables, but the rate I was paying last year was $125-130 day for long day service (without rebate/subsidy).

Will depend on location and the centre itself.
 

00Stinger

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May 8, 2007
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I pay just under $300 after the rebate for 2 kids x 2 days a week

Pretty sure before the rebate it is $135-$140 a day at the center my kids go to
 

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JoondalupJ

Brownlow Medallist
Oct 9, 2006
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Perth
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I pay just under $300 after the rebate for 2 kids x 2 days a week

Pretty sure before the rebate it is $135-$140 a day at the center my kids go to
Maybe its my age bracket but I struggle to understand how young families or partners or singles can afford this and survive.

The pay packets would be skinned alive I would think?
 

00Stinger

Duel Group 1 winner
May 8, 2007
25,254
27,790
@ HOME
AFL Club
Melbourne
Other Teams
Liverpool & San Francisco 49ers
Maybe its my age bracket but I struggle to understand how young families or partners or singles can afford this and survive.

The pay packets would be skinned alive I would think?
Its far from ideal but it is what it is i guess. But I kind of think you have to factor these things in before you have kids.

With childcare and a decent mortgage it definitely does add up in costs. Off top of my head I reckon it sets us back about $4.2k-$4.5k a month for childcare & the mortgage.

Probably lucky my wife and I make pretty decent money and just budget for it and don't notice it too much unless I look through the bank account

Sent from my SM-G981B using Tapatalk
 

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Norm Smith Medallist
Sep 26, 2003
9,375
5,977
Melbourne
AFL Club
North Melbourne
Thanks, very expensive, how on earth do people afford it?
I pulled up an invoice from the end of last year. For one child it was $560/week with a rebate of $167 (it was capped to $7500/year), so essentially $80/day per child (I think it was $90 from start of 2020). So it was around $1600-1700/month for one child.

I never explored salary sacrifice of child care but that may also bring down the net cost.
 

JoondalupJ

Brownlow Medallist
Oct 9, 2006
12,561
4,577
Perth
AFL Club
Hawthorn
Other Teams
Perth Wildcats basketball
I pulled up an invoice from the end of last year. For one child it was $560/week with a rebate of $167 (it was capped to $7500/year), so essentially $80/day per child (I think it was $90 from start of 2020). So it was around $1600-1700/month for one child.

I never explored salary sacrifice of child care but that may also bring down the net cost.
Maybe its my age brackett , but 80 dollars a day suggests to me you would not be a person doing that sort of paying out if you were not well paid, when I was working there was no way we could afford 80 dollars a day, and from what I read it is pretty normal maybe quite low, even two parents working in lower economic circumstances would struggle, and that what I was, both of us.
I have other family looking at this and curiosity had me ask.
I seriously cannot believe how people can afford it even with a pittance for a subsidy, if you had 20 kids in an $80 dollar a day for 5 days a week, child care centre, that establishment makes $8000, and thats at the lower end, $80 a day x 5 days = 400 per child per week x 20 kids equals $8000.00 dollars for say four people? 1 person to 5 kids?
Say average work time frames of 9 hr shifts per day per employee, who work for $25 dollars P/H each gets $1125.00 per week $4500 employee costs, leaves $3,500 dollars gross, to owner ?
Two things about that, is that enough for the owner who I assume would have to be on site and part of the workforce, with different aged kids, there's be costs for feeding kids, there'd be toys, electricity, TV, bathrooms, sleep areas, first aid room, the costs look astronomical.
So perhaps it is something government need to figure out, maybe work out some way where mums or dads can bring up their kids with only one needing to be working, (professionals with two working well they may afford super child care facilities) that way kids have a parent around in the early important years of being alive.
The subsidy seems pathetic and the cost outlandish, so any wonder some places have trouble keeping up.
I wonder why you would even start a child minding centre? Maybe they make more than I think?
So how close is that to what it might cost to do that sort of business. I'd reckon $80 bucks a day per child is pretty conservative?
 

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Norm Smith Medallist
Sep 26, 2003
9,375
5,977
Melbourne
AFL Club
North Melbourne
Maybe its my age brackett , but 80 dollars a day suggests to me you would not be a person doing that sort of paying out if you were not well paid, when I was working there was no way we could afford 80 dollars a day, and from what I read it is pretty normal maybe quite low, even two parents working in lower economic circumstances would struggle, and that what I was, both of us.
I have other family looking at this and curiosity had me ask.
The major factors are a) single or double income families, b) income levels and c) number of children. So for some parents it is simply not viable.

BTW that's $80 PER CHILD. There was one year both my kids were in all week and it was costing ~$750/week. So the missus' salary was simply covering child care costs. If we had a third child of that age she would have had to quit her job.

For comparison, the before/after school care costs at our school are ~$50/day (school holidays $75-100/day). A subsidy is applied to that based on income levels so may drop to closer to $15-20/day per child.

The cost drops significantly once kids go to school, but then you're hit with school fees, uniforms, etc. as well.

Having children is not cheap!
 

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Norm Smith Medallist
Sep 26, 2003
9,375
5,977
Melbourne
AFL Club
North Melbourne
I wonder why you would even start a child minding centre? Maybe they make more than I think?
The subsidy goes straight to the centre, not the parents.

BTW my rates were for a not-for-profit community centre. I know from the AGMs that there weren't large margins (essentially break even). It is a great centre so I feel blessed my kids went there (even though it cost an arm and a leg).
 

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