Costs to Run a Daycare Business in Australia

Cost of opening a daycare in Australia

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If you’re considering opening a daycare in Australia, you may be wondering about the costs involved. Childcare services are in high demand in Australia, with many parents relying on them to care for their children while they work or attend school. However, running a daycare comes with its own set of expenses, and it’s important to understand them before embarking on this venture. In this article, we’ll break down the different costs associated with running a daycare in Australia, including overheads, staffing, and other essential expenses.

Overheads: Crunching the Numbers

Running a daycare center requires a physical space where children can safely play, learn, and rest. Rent or mortgage payments, utilities, and other overhead costs can vary depending on the location, size, and condition of the daycare center. Here are some of the key overhead expenses to consider:

Rent or Mortgage

The cost of renting or buying a property to operate the daycare is a significant expense. In Australia, the cost of commercial property can vary greatly depending on the city or suburb. For instance, daycare centers in metropolitan areas like Sydney or Melbourne may have higher rent or property prices compared to regional areas.

Utilities: Water, electricity, gas, and other utility bills are essential expenses for running a daycare. The cost of utilities can vary depending on the size of the daycare center, the number of children enrolled, and the facilities offered.


Childcare centers are required to have various types of insurance, including public liability insurance and worker’s compensation insurance. The cost of insurance premiums can vary depending on the coverage and the location of the daycare center.

Maintenance and Repairs

Regular maintenance and repairs are necessary to keep the daycare center safe and in good condition. This can include repairs to playground equipment, plumbing, electrical systems, and other facilities. The cost of maintenance and repairs can vary depending on the age and condition of the daycare center.

Staffing: The Heart of Childcare Services

One of the most significant expenses in running a daycare in Australia is staffing. Childcare centers require qualified and experienced staff to care for the children and ensure their safety and well-being. Here are some staffing-related expenses to consider:


Paying wages to daycare staff is a significant expense. The wages of childcare workers in Australia are regulated by the Fair Work Commission and vary depending on factors such as experience, qualifications, and location. In addition to regular wages, daycare centers may also need to provide additional benefits such as sick leave, annual leave, and superannuation contributions.

Training and Professional Development

Childcare workers in Australia are required to have certain qualifications and certifications. The cost of training and professional development for staff can vary depending on the type of qualifications required and the training provider.

Staffing Ratios

Childcare centers in Australia are required to maintain specific staffing ratios based on the age of the children. These ratios dictate the number of staff needed for each child in the daycare center. Maintaining the required staffing ratios can impact the overall staffing expenses of the daycare center.

Other Essential Expenses: Going Beyond the Basics

Running a daycare in Australia also involves other essential expenses that are necessary for providing quality childcare services. These expenses can include:

Food and Nutrition

Providing nutritious meals and snacks to children in daycare is essential for their well-being. The cost of food and nutrition can vary depending on the menu, dietary requirements, and the number of children enrolled in the daycare center.

Educational Resources and Materials

Daycare centers need to provide age-appropriate educational resources, materials, and activities for children. This can include books, toys, art supplies, educational tools, and other resources. The cost of these materials can vary depending on the quality and quantity needed.

Safety and Security

Ensuring the safety and security of children in daycare is of utmost importance. This may include installing security systems, maintaining safe playground equipment, and implementing safety measures such as childproofing, fire safety, and emergency preparedness. The cost of safety and security measures can vary depending on the size and location of the daycare center.

Administrative Expenses

Running a daycare also involves administrative expenses such as accounting, legal fees, licensing fees, and other operational costs. These expenses may vary depending on the size and complexity of the daycare center, as well as the legal and regulatory requirements in the specific location.


Running a daycare in Australia comes with its own set of expenses, including overheads, staffing costs, and other essential expenses. It’s crucial to thoroughly research and understand the costs involved in operating a daycare center and budget accordingly to ensure its sustainability. Consider factors such as location, property costs, wages, training, food and nutrition, safety and security measures, and administrative expenses when estimating the overall cost of running a daycare in Australia. Consulting with professionals and staying updated with the relevant laws and regulations can help ensure a smooth and successful operation of your daycare center in the land down under.


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