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Childcare in Melbourne: costs, the Child Care Subsidy and finding a place
Melbourne childcare is expensive and, in the inner suburbs, hard to get into. Here is what long day care really costs in 2026, how the Child Care Subsidy and the new 3 Day Guarantee cut your bill, what Victoria's Free Kinder covers, and how to work the waitlists. Every figure below is drawn from the official sources listed at the end.
The short version
Long day care in Melbourne typically runs about $130 to $200 a day before subsidy, with a citywide benchmark near $160. Most eligible families pay far less out of pocket once the Child Care Subsidy (CCS) is applied, commonly a gap of roughly $20 to $40 a day. From 5 January 2026 every CCS-eligible family is guaranteed at least three subsidised days a week under the 3 Day Guarantee, regardless of how much the parents work or study. On top of the federal subsidy, Victoria's Free Kinder makes funded kindergarten free or low cost for three and four year olds. The hard part in the inner suburbs is not the price but the wait: 12 to 18 months is common for sought-after centres, so families put their names down early and at several centres at once.
Types of childcare in Melbourne
- Long day care (LDC). Centre-based care for children from birth to school age, usually open about 7am to 6pm on weekdays. It is the most common option and the one most families use. Melbourne's mix runs from community-based not-for-profits and council-operated centres (the City of Melbourne, Merri-bek and Yarra all run centres) to private and national chain operators.
- Family day care (FDC). Care in an educator's own home in small groups. Fees are usually a little lower than centre-based care and hours can be more flexible.
- Occasional and in-home care. Shorter or irregular sessions, and, for families who meet the criteria, subsidised in-home care. These are more common in outer and regional areas where centre places are thin.
- Kindergarten (sessional). A funded educational program in the two years before school, run either as a standalone sessional service or built into a long day care centre. See Free Kinder below.
What it costs in 2026
Headline long day care fees in Melbourne generally sit between about $130 and $200 a day before any subsidy, with a citywide average close to $160. Inner and inner-north suburbs such as Fitzroy, Carlton and Northcote tend to be at the higher end; outer growth-corridor suburbs such as Tarneit, Mickleham, Clyde North and Officer are usually cheaper, partly because new centres are opening there. Community-run centres are often a little below the equivalent private fee.
The daily sticker price is not what most families actually pay. After the Child Care Subsidy, a typical middle-income household lands somewhere around $20 to $40 a day out of pocket, depending on income and the centre's fee. The one caveat: the subsidy is calculated on the lower of the centre's fee or the government's hourly rate cap, so if a centre charges above the cap you pay the full difference on those hours no matter what your subsidy percentage is.
The Child Care Subsidy (CCS)
CCS is the main federal payment that lowers your fees. It is paid directly to your provider and reduces the amount you are charged. Your percentage depends on your family's combined income. The thresholds are indexed to the Consumer Price Index each financial year; the figures below are for the 2025-26 year (from 7 July 2025):
| Combined family income | Child Care Subsidy rate |
|---|---|
| $0 to $85,279 | 90 per cent |
| More than $85,279 to below $535,279 | Between 90 and 0 per cent, dropping 1 percentage point for every $5,000 of income above $85,279 |
| $535,279 or more | 0 per cent (no subsidy) |
The subsidy is capped by an hourly rate. For 2025-26 the cap is $14.63 an hour for centre-based day care for a child below school age (and $12.81 for a school-age child), $13.56 for family day care, and $39.80 per family for in-home care. Families with more than one child aged five or under can get a higher rate, up to 95 per cent, for the younger children where their income is up to $143,273.
New in 2026: the 3 Day Guarantee
From 5 January 2026 the old activity test was replaced by the 3 Day Guarantee. Every CCS-eligible family can now get at least 72 hours of subsidised care per fortnight, the equivalent of three days a week, regardless of how much the parents work, study or volunteer. Families with higher activity can still access up to 100 hours a fortnight, and families caring for a First Nations child are eligible for 100 hours. Families already receiving CCS do not need to do anything; families who have never claimed need to lodge a CCS claim through myGov first.
Victoria's Free Kinder and Pre-Prep
Separately from the federal subsidy, the Victorian Government funds kindergarten through its Free Kinder program, part of the Best Start, Best Life reforms. It is a grant paid to participating services, not a means-tested payment, so it does not depend on your income.
- Three-Year-Old Kindergarten. A funded program of between 5 and 15 hours a week, increasing towards 15 hours statewide by 2029.
- Four-Year-Old Kindergarten. A funded program of 15 hours a week. It is progressively becoming Pre-Prep, with funded hours increasing from 15 towards 30 hours a week from 2025 and rolling out across all of Victoria by 2036.
- How the funding lands. At standalone (sessional) kindergartens the program is free. At long day care centres, families receive an annual fee offset rather than a fully free program, so you usually still pay some fees across the week on top of your CCS entitlement.
Waitlists, and how to navigate them
Supply is the real constraint in inner Melbourne. In high-demand suburbs such as Fitzroy, Carlton and Brunswick, waits of 12 to 18 months for a sought-after centre are common, and the most popular centres can be longer. Availability is much easier in the outer growth corridors, where newly built centres in suburbs like Mickleham, Donnybrook, Tarneit and Officer often have places within a few months. A few practical moves:
- Register at several centres at once rather than pinning your hopes on one.
- Put your name down as early as you can, well before you need the place.
- Monday and Friday places tend to free up sooner than the Tuesday to Thursday peak.
- Council-operated centres often give priority to local residents, so check your local council's policy.
- If you commute, a centre in a growth-corridor suburb near your route can cut the wait to weeks.
How to find a place and apply
Starting Blocks, run by the national regulator ACECQA, is the authoritative tool for finding and comparing approved services near you, including each centre's quality rating. Claim the Child Care Subsidy through your myGov account linked to Centrelink, and check enrolment for Free Kinder directly with the kindergarten or long day care centre.