What types of childcare are there for babies and toddlers?
If you’re looking for care for a baby or toddler, you have more options than you might realise. From long day care and Family Day Care to nannies, grandparents and occasional care, the right arrangement will depend on your child, your work, your budget and how much flexibility you need. Here’s a simple overview of the main childcare options for children aged birth to two.
First, which types of childcare can receive Child Care Subsidy?
The Child Care Subsidy (CCS) is an Australian Government subsidy that can reduce the amount eligible families pay for approved childcare. For babies and toddlers, CCS may apply when you use an approved:
- long day care service
- occasional care service
- Family Day Care service
- In Home Care service, if your family meets the specific eligibility requirements.
CCS generally doesn't apply when you privately arrange care yourself, such as hiring your own nanny or babysitter, using an au pair, or having a grandparent care for your child. You don't need to understand it all before you start looking for care but it does help to know if you're eligible for CCS and get an estimate of how much CCS you could get.
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Long Day Care
Long day care, sometimes simply called “childcare” or “centre-based care”, is one of the most common options for babies and toddlers. Children are cared for in an early childhood education and care service by qualified educators, usually alongside other children of a similar age. Services generally operate for extended hours on weekdays, making them particularly useful for parents who work or study. Long day care isn't just supervision while you're away. Approved services provide an educational program based on children's development, interests and learning.
Might suit you if: you need regular care across full working days and would like your child to experience an early learning program alongside other children. If you only require care for a few hours per day, this is likely not the most economical option - families are usually required to pay for a full day, regardless of how many hours their child actually attends.
Worth considering: babies and toddlers attending group care are exposed to lots of other children, which can also mean plenty of sick days due to coughs, colds and other illnesses, particularly when they first start. You'll need a backup care plan for days when your child is too unwell to attend. CCS can help eligible families with the cost of approved long day care.
Family Day Care
Family Day Care offers education and care in the home of a registered Family Day Care educator. Groups are generally much smaller than those found in a childcare centre and children may be cared for alongside children of different ages. For some families, the smaller group and home-like environment can feel particularly appealing when their child is very young or has additional needs.
Might suit you if: a smaller group environment or a more home-like better suits your child and family's needs.
Worth considering: availability can depend heavily on individual educators in your area, including the days and hours they offer. Family Day Care educators generally work independently, so there may not be another educator available to step in if they’re unwell or taking leave. Families using this type of care need to have a backup care plan for these occasions. CCS may apply when you use an approved Family Day Care service.
Occasional Care
Occasional care is designed for families who need childcare for shorter or less regular periods rather than the same full days every week. Community neighbourhood houses and local gyms/fitness centres often offer this type of care. Depending on the service, you might be able to book a few hours or a session of care while you attend an appointment, work casually, study, exercise or simply get a few things done. This can also give babies and toddlers an opportunity to spend time with other children and educators without attending long day care several days a week.
Might suit you if: you only need care occasionally or aren't ready to commit to regular full-day childcare. The shorter sessions can work for parents with flexible work arrangements, additional help from grandparents or parents who simply need a little time to complete activities without their child.
Worth considering: occasional care isn't available in every area, places and sessions are often limited and advanced regular/ongoing bookings may not be accepted, making planning ahead difficult. Only some occasional care services are approved for CCS, so it’s worth checking with the individual service. While the hourly rate can sometimes be higher than long day care, families are usually paying for a shorter session rather than a full day of care they may not need.
Nanny
A nanny cares for your child in your own home and may work anything from a few hours a week to regular full-time days. For families with very young children, one of the biggest attractions can be convenience. Your baby can remain in their familiar environment and you don't need to manage childcare drop-off and pick-up. A nanny can also follow your family's usual routines around feeds, naps and activities.
Might suit you if: you want one-on-one care, need flexible hours, value the consistency of care provided in your own home or have a child with additional needs.
Worth considering: privately employing a nanny can be considerably more expensive than subsidised childcare. CCS does not generally apply to a nanny you privately arrange yourself. If you employ a nanny through an agency, there may be additional costs in addition to the hourly rate, such as admin fees, superannuation, insurance and sick / holiday leave.
You'll also need a backup plan if your nanny is sick or unavailable.
What about a nanny share?
A nanny share is an arrangement where two or more families employ or use the same nanny and share the cost. The children may be cared for together in one family's home or care may rotate between homes. It can make nanny care more affordable while still providing a much smaller group than most centre-based services.
Might suit you if: you'd like nanny-style care but are happy for your child to share their day with another child or family.
Worth considering: you'll need families whose preferred days, hours, parenting expectations and location work well together. The same costs mentioned above could apply, however, these may be reduced by splitting costs between families. CCS doesn't generally apply to privately arranged nannies.
Babysitter
A babysitter generally provides more casual or short-term care than a nanny. You might use a babysitter for an evening out, an appointment or an occasional block of daytime care rather than relying on them as your main weekly childcare arrangement.
Might suit you if: you need occasional, flexible care rather than a regular childcare schedule.
Worth considering: experience, qualifications, checks, references and rates can vary considerably between babysitters, so it's important to be thorough during the hiring process and know what to consider before you make a decision. CCS doesn't generally apply to privately arranged babysitting, so costs can really add up.
Au P air
An au pair usually lives with a family and provides an agreed amount of childcare and household help as part of the arrangement. For some families, this can offer considerably more flexibility than childcare with fixed opening and closing times. However, an au pair arrangement is quite different from simply booking childcare. You're inviting someone to live in your home, so expectations around childcare hours, household responsibilities, privacy, time off and living arrangements need to be clear. Depending on how the arrangement operates, an au pair may also legally be considered an employee.
Might suit you if: you'd like flexible care at home and are comfortable having another person living as part of your household. As part of their contracts, some au pair will assist with other household tasks, such as clearing, running errrands or helping with laundry.
Worth considering: the arrangement involves much more than childcare alone and may come with employment, pay and accommodation obligations. CCS doesn't generally apply to a privately arranged au pair. Employing an au pair through an agency helps with the hiring process but expect additional costs, including agency admin fees, and your au pair may be entitled to paid sick/ holiday leave and superannuation.
In Home Care
In Home Care (IHC) is a specific Australian Government-approved form of childcare where an educator provides care in the homes of eligible families. It isn't simply another name for hiring a nanny - the program is designed for families who cannot access other suitable approved childcare, for example because they:
- work non-standard or variable hours
- live in a geographically isolated area
- have complex or challenging family circumstances.
Families must meet eligibility requirements and apply through an In Home Care Support Agency.
Might suit you if: your circumstances make mainstream childcare genuinely unavailable or unsuitable.
Worth considering: In Home Care is a targeted program with specific eligibility requirements, rather than an option every family can simply choose. Eligible families using approved In Home Care can receive CCS.
Grandparents or other family members
For some families, grandparents or other relatives are able to provide care for their baby. There can be plenty of benefits: your baby is with someone they already know, care may be more flexible and there may be little or no financial cost.
Grandparent care can also be combined with another option. For example, your child might attend long day care two days a week and spend one day with a grandparent or perhaps you child could attend a morning session of Occasional Care followed by an afternoon with a grandparent.
Might suit you if: you have a family member who genuinely wants and is able to provide regular care.
Worth considering: it's worth talking openly about routines, discipline, food, sleep, safety, availability and what happens when plans change. Regular care can feel very different from occasional grandparent babysitting. CCS isn't paid simply because a grandparent or relative is looking after your child privately.
There are separate rules for grandparents who are the "principal carers" of their grandchildren and use approved childcare, who may be eligible for Additional Child Care Subsidy.
How do I choose the right type of care for my baby?
There isn't one childcare option that's best for every baby or family. Think about what will realistically work with your schedule, budget, location and the kind of care you feel will suit your child. Your arrangement doesn't have to fit neatly into one box either - many families combine different types of care, such as childcare and grandparents, or a nanny and occasional care.
Rest assured, you don't have to make the perfect decision on day one. Your family's needs will change, and your childcare arrangements can change with them.
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