Childcare options: what is available and how to choose

0-12 months · Family · Reviewed 20 June 2026 · All articles

Returning to work after the birth of a baby means navigating a childcare system that, for many families, feels vast and confusing. In Australia, the options range from large centre-based services to a single educator caring for a handful of children in a home setting, from live-in nannies to registered in-home care. Government subsidies can significantly cut costs, but only if you know how to access them. Quality ratings published by the national regulator give you an independent benchmark, but reading those ratings takes some practice.

This guide walks through every mainstream childcare type available to families with babies aged 0 to 12 months, explains how the Child Care Subsidy works, and gives you a clear framework for comparing your options. Nothing here replaces a conversation with your local Family Assistance Office or a tour of individual services, but it will help you walk into those conversations prepared.

The main types of childcare

Australian families with babies under 12 months have access to several distinct care arrangements. Each has its own regulatory framework, cost structure, and day-to-day character.

Long day care

Long day care (LDC) is centre-based care delivered in a dedicated facility. Centres typically operate between 7 am and 6 pm, Monday to Friday, for most of the calendar year. Each room within a centre is staffed according to educator-to-child ratios set by state and territory law. For babies aged under 24 months, the ratio in most states is one educator for every four children, though some jurisdictions require one to three in the youngest rooms.

LDC services must be approved by the Australian Government and assessed against the National Quality Standard (NQS). Because they operate under consistent regulations, they tend to offer predictable programming, structured mealtimes, and documented developmental observations. Waiting lists for baby rooms are often long: families in major cities sometimes join a list before birth and still wait 6 to 12 months for a spot.

Family day care

Family day care (FDC) is provided by an approved educator in their own home. Educator numbers are capped: each educator can care for a maximum of seven children at any one time, with no more than four children being under school age and no more than two being under 24 months (with some variations by state). This smaller group size creates a quieter, home-like environment that many parents find suits young babies well.

FDC educators are coordinated through registered schemes, which handle their compliance obligations, insurance, and professional development. Because each educator sets their own availability, FDC can be more flexible about hours and days than a centre. On the other hand, if your educator is sick, the scheme must find a replacement or you may need to make alternative arrangements at short notice.

In-home care

In-home care (IHC) brings an approved educator into the family's own home. It is designed for families who live in areas with no other approved care, work non-standard hours, have a child with a complex medical condition, or have multiple children whose combined care needs are hard to meet in a group setting. IHC is approved childcare for CCS purposes, but eligibility criteria are specific. The government administers IHC directly through a small number of approved providers.

Nannies and au pairs

Hiring a nanny is not the same as using approved childcare. A private nanny arrangement does not attract the Child Care Subsidy unless the nanny is registered through an IHC provider. Nannies are employed directly by the family, which means the family takes on employer obligations including payroll tax, superannuation, and workers compensation insurance in most cases. Au pairs, who typically exchange help with childcare for accommodation and a stipend, also sit outside the approved care framework. Both arrangements can offer enormous flexibility and one-on-one attention, but the full cost falls to the family without subsidy support.

Occasional care and mobile services

Some centres offer occasional care: a small number of places available on a casual, as-needed basis rather than a fixed weekly booking. Occasional care can work well for parents who need care irregularly or are easing a baby back into a routine after a period at home. Mobile and remote services, including some mobile toy libraries and supported playgroup programs, are not formal childcare but provide social contact and developmental stimulus for babies in areas with limited centre access.

How the Child Care Subsidy works

The Child Care Subsidy (CCS) is the Australian Government's primary mechanism for making approved childcare affordable. It replaced the older Child Care Benefit and Child Care Rebate in 2018 and has been modified several times since to expand eligibility and increase subsidy percentages at lower income levels.

Who can receive it

To receive CCS, a family must meet three tests. First, the child must be aged 13 years or under and not attending secondary school. Second, the child must be immunised in accordance with the schedule for their age, or have an approved exemption. Third, the claiming parent or their partner must meet the activity test: they must be engaged in approved activity (paid work, study, volunteering, job search, or a combination) for a minimum number of hours per fortnight. Families who do not meet the activity test at all may still receive a small amount of CCS to cover one day of care per week for children at risk of harm.

Income also affects the subsidy percentage. Higher family incomes receive a lower percentage of the hourly rate cap covered by the government. From the 2024-25 year, families with a combined income below approximately $80,000 receive the maximum subsidy percentage (90%). The percentage tapers gradually as income rises and cuts out altogether above approximately $530,000 combined income (figures adjusted each financial year).

The hourly rate cap

CCS is applied against an hourly rate cap set by the government for each care type, not against the centre's actual fee. If the centre charges more than the cap, the family pays the difference in full on top of their gap fee. Before enrolling, ask the service how their hourly rate compares to the current cap for their care type. The Department of Education publishes the current caps on its website.

Applying for CCS

Applications are made through myGov, linked to a Centrelink account. You will need your child's immunisation history from the Australian Immunisation Register, your family's income estimate for the financial year, and details of your approved activity. Once approved, CCS is paid directly to your childcare provider, who deducts it from your fees. You pay only the gap.

Because CCS is based on estimated income, it is important to update your income estimate during the year if circumstances change. A significant underestimate can result in a debt at tax time.

Understanding quality ratings

The Australian Children's Education and Care Quality Authority (ACECQA) oversees quality assessment and rating of childcare services through the National Quality Framework. Every approved service is assessed against seven quality areas.

The seven quality areas are: educational program and practice; children's health and safety; physical environment; staffing arrangements; relationships with children; collaborative partnerships with families and communities; and governance and leadership. Each quality area is rated separately, and the ratings are combined to produce an overall rating.

The five possible overall ratings, from lowest to highest, are: Significant Improvement Required, Working Towards NQS, Meeting NQS, Exceeding NQS, and Excellent (the Excellent rating is awarded by ACECQA separately from the standard assessment process and is relatively rare). The large majority of services are rated Meeting NQS or above.

You can look up the current rating of any approved service on the My Child website at mychild.gov.au. The search returns both the current overall rating and the most recent detailed assessment report, which shows individual quality area scores and any conditions attached to the rating. Reading the report is more useful than looking only at the headline rating: a service rated Meeting NQS overall might be Exceeding in the quality areas most relevant to infants, such as health and safety and relationships with children.

What to look for when choosing care for a baby under 12 months

Quality ratings and cost are important, but a visit to the service tells you things that no report can capture. When you tour a baby room, pay attention to the following.

Consistency of care

Young babies form attachments to their caregivers. A room with high staff turnover, or one where babies are moved between multiple rooms across the day, makes stable attachment harder. Ask whether babies in the 0-12 month room have a primary educator who is responsible for their routine and daily care. Ask about average staff tenure in the baby room specifically.

Ratios and group size

Even services that meet the legal minimum ratio may differ in how many babies are in the room at once. A room with 12 babies and 3 educators meets a 1:4 ratio, but a room with 6 babies and 2 educators at the same ratio feels and sounds very different. Smaller group sizes generally mean less noise and more individual attention.

Settling-in policy

Good services offer a structured settling-in program: two to four visits of increasing length before the first full day. This allows your baby to build familiarity with the room, the smell, the noise level, and the key educators before you leave them for a full session. Ask whether the settling-in visits are counted as care days for CCS purposes and how they fit with your start date.

Communication practices

For babies who cannot tell you about their day, communication between educators and parents carries extra weight. Ask how the service shares information about feeds, sleep, nappy changes, and observations. Many services use an app to send updates during the day. Find out whether educators will call you if your baby is unsettled and what the procedure is if your baby becomes unwell.

Sleep and feeding policies

Ask directly about safe sleep practices. Services should follow the Red Nose safe sleep guidelines: babies placed on their backs, on a firm and flat surface, with no loose bedding. If you are breastfeeding, ask about facilities for storing expressed milk and warming bottles. Some centres have a dedicated feeding space where parents can come in to breastfeed during the day.

Waitlists, timing and what to do now

Baby room places are among the most sought-after spots in the childcare system. In metropolitan areas, demand consistently outstrips supply. Families who delay joining a waitlist until six months before they need care frequently find no vacancy at their preferred services.

The most practical advice is to register on waitlists at multiple services as early as possible, even before your baby is born if you already know your intended return-to-work date. Most services do not charge a waitlist fee, and being on a list does not commit you to accepting a place if your plans change.

When a place is offered, you will usually have a short window (sometimes 24 to 48 hours) to accept or decline. Think about your preferences and budget in advance so you are not making a rushed decision under pressure.

If you are unable to secure a place at your preferred centre before your return-to-work date, family day care is often more accessible at shorter notice. Asking your employer whether flexible start dates or a phased return are possible can also give you more time.

Cubby helps you track your baby's feeds, sleep, nappies, and milestones in one calm place. Free to start, no credit card needed.

Open Cubby

Common questions

What is the Child Care Subsidy and who is eligible?

The Child Care Subsidy (CCS) is an Australian Government payment that reduces the out-of-pocket cost of approved childcare. Most families with a child in approved care are eligible, provided they meet an activity test (working, studying, volunteering, or looking for work) and have a combined family income below the relevant threshold. The subsidy percentage depends on family income, the type of care used, and the number of hours of activity. You apply through myGov linked to a Centrelink account.

What is the difference between long day care and family day care?

Long day care is centre-based care operating in a purpose-built or dedicated facility, typically open 10 to 12 hours a day, 5 days a week. It follows the National Quality Standard and must meet educator-to-child ratios set by each state and territory. Family day care is provided by an educator in their own home, usually caring for a small mixed-age group. It offers a home-like setting and can be more flexible with hours and days, but availability varies by area.

How do I check the quality rating of a childcare centre?

All approved childcare services in Australia are assessed against the National Quality Standard by their state or territory regulatory authority. Ratings range from Significant Improvement Required through to Outstanding. You can search for a service and view its current rating on the My Child website at mychild.gov.au, or directly on the ACECQA national registers. Check both the overall rating and the individual quality area ratings to get a fuller picture.

When is the right time to start childcare for a baby under 12 months?

There is no single right age. Practical factors such as the end of parental leave, financial circumstances, and the availability of a spot often shape the timing more than developmental readiness. Babies can settle into quality care at any age in the first year. A gradual settling-in process, usually 2 to 4 visits of increasing length before the first full day, helps your baby build familiarity with the new environment and caregivers.

Trusted sources