Daycare vs Family Day Care vs Nanny vs Au Pair

Four very different options, four very different price tags, and a Child Care Subsidy that only applies to some of them. Here's how Melbourne families actually choose.

The four options at a glance

1. Long Day Care (centre-based) The default. Purpose-built centres, 7:30am-6pm, qualified educators, funded kinder built in for 3- and 4-year-olds.

• Melbourne cost: roughly $130-$190 a day before subsidy (inner-suburb premium is real).
• CCS: yes — reduces the fee directly.
• Best for: working parents who want reliability, socialisation, and the kinder program in one place.
• Watch for: brutal waitlists (apply during pregnancy), and you pay for public holidays and your child's sick days.

2. Family Day Care (FDC) An educator cares for a small group in their own home.

• Melbourne cost: often $10-$13 an hour before subsidy.
• CCS: yes.
• Best for: families wanting a smaller, home-like setting, mixed-age siblings together, or non-standard hours.
• Watch for: quality varies educator-to-educator — meet them, check their rating, and have a backup for when they take leave.

3. Nanny (in your home) You employ someone (or use an agency) to care for your child at home.

• Melbourne cost: roughly $30-$40+ an hour, and you're the employer — super, leave, insurance, tax.
• CCS: generally no (only approved In-Home Care, a limited program, attracts subsidy).
• Best for: multiple children (cost-per-child drops), shift workers, or when no centre place exists.
• Watch for: it's a real employment relationship — Fair Work obligations apply.

4. Au Pair A young (often international) carer who lives with you in exchange for board plus pocket money.

• Melbourne cost: typically $250-$400 a week pocket money plus food and a room.
• CCS: no.
• Best for: spare room, flexible needs, cultural exchange, school-age wrap-around care.
• Watch for: they're usually not qualified educators — fine for older kids, less so as sole care for a baby.

The subsidy is the whole game

For most families, the Child Care Subsidy tilts the maths hard toward long day care or family day care, because the out-of-pocket cost after CCS can be less than half the nanny rate. A nanny only pulls ahead financially when you have 2-3 children needing care at once (one flat rate covers them all).

Set up CCS through myGov → Centrelink before your child starts. See our Free Kinder & CCS guide.

Hidden costs nobody mentions

• Centres: enrolment fees, daily late-pickup fines, and paying for absences and public holidays.
• FDC: educator leave gaps you have to cover.
• Nanny: superannuation, paid leave, WorkCover, and agency placement fees.
• Au pair: food, utilities, a car for them to use, and the intangible cost of sharing your home.

A by-season cheat sheet

• One baby, both parents working full-time: long day care, get on waitlists in pregnancy.
• Twins or two-under-three: run the nanny maths — it often wins.
• Shift / irregular hours: family day care or a nanny.
• School-age kids needing before/after + holidays: au pair or outside-school-hours care.

Browse centres and educators in the directory, and read about the waitlist reality before you commit.

Disclaimer: melbourne.baby is a community platform — information is general and not financial or legal advice. Check servicesaustralia.gov.au and fairwork.gov.au for current rules.