The ECEC Financial Benchmarks You Need to Be Aware Of 

Australian ECEC services rely on Child Care Subsidy funding and steady enrolments, which makes accurate financial benchmarks critical. Staffing typically accounts for 65 to 75 per cent of gross revenue, so occupancy and rostering drive sustainability. Most services need 85 to 95 per cent occupancy to break even and support compliance, professional development and marketing. National Quality Framework educator-to-child ratios, such as one educator for four children aged zero to two, one to five for ages two to three, and one to ten for ages three and over, shape workforce costs. Marketing typically requires two to three per cent of revenue, while professional development averages one to two per cent of staff costs.

From 2026, ECEC services also need to consider award wage increases effective from 1 March 2026, RBA card surcharge reform effective 1 October 2026, and expanded CCS entitlements under the 3-Day Guarantee that came into effect from January 2026.

The early childhood education and care (ECEC) sector in Australia benefits from strong demand and government-backed stability. The Child Care Subsidy (CCS) plays a central role by making services affordable for families and ensuring predictable revenue for providers. This combination of steady enrolments and essential service delivery makes ECEC an attractive and resilient industry. 

Staffing is the most significant cost, typically 65 to 75 per cent of gross revenue. Effective occupancy management, efficient rostering and strategic owner involvement can enhance sustainability. Educator-to-child ratios and qualification requirements under the National Quality Framework also shape workforce planning and long-term costs. 

Financial strength depends on meeting occupancy targets, implementing effective fee structures and maintaining careful budgeting for compliance, resources and marketing. ECEC services should aim for 85 to 95 per cent occupancy, balance competitive pricing with value and allocate funds for professional development and promotion. Regularly reviewing these benchmarks helps providers maintain both quality care and financial viability. 

Maybe you’re new to the early childhood education and care (ECEC) sector. Or perhaps you’re considering how to develop your existing ECEC service in a financially prudent manner. Either way, some critical ECEC financial benchmarks should always be front of mind. This is a quick summary to help you focus on the most important ones. 

Staff costs are one of your most significant ECEC financial benchmarks 

Staff costs typically represent 65–75% of gross revenue in well-managed ECEC services. This is your largest expense category, so managing it effectively is crucial for sustainability. To optimise this percentage: 

Important update (March 2026): Award wages under the Children’s Services Award 2010 increased from 1 March 2026 following the Fair Work Commission’s gender-based undervaluation review. These are staged increases representing a structural correction, not a one-off adjustment, so services should review their staff cost benchmarks against updated award rates. The 65–75% guideline may shift upward for services that have not yet repriced to account for these changes. Review your current award classifications and payroll settings to ensure compliance.

Educator-to-child ratios 

Understanding mandatory ratios is essential for workforce planning and cost management: 

Note: Some states have specific variations to these ratios, so always check your local regulations. 

Staffing requirements and qualifications 

Services must maintain specific qualification mixes as outlined in the National Quality Framework: 

Professional development costs should be budgeted at approximately 1–2% of staff costs annually. 

Note: Given the higher award wage base from March 2026, the absolute dollar amount of this budget will increase even if the percentage remains the same, factor this into your annual budget planning.

Occupancy targets 

Break-even occupancy varies by service size and cost structure but typically ranges from 85–95%. Key occupancy strategies include: 

Consistent attendance—Encourage a minimum of 2–3 days per week per child to improve revenue predictability

Waitlist management—Maintain active waitlists for all age groups to fill vacancies quickly

Retention focus—It’s more cost-effective to retain existing families than constantly recruit new ones

3-Day Guarantee (from 5 January 2026): All CCS-eligible families are now entitled to a minimum of 72 hours of subsidised care per fortnight (3 days per week), regardless of their activity test status. For providers, this could reduce the risk of low-attendance gaps in your enrolment and should support more consistent, predictable occupancy revenue. If you haven’t already, update your enrolment communications to reflect this change for prospective families.

Fee structure considerations 

Important: Childcare fees are GST-free, but this doesn’t apply to additional services like excursions or extra meals. 

Current market rates vary significantly by location, with metropolitan areas typically commanding higher fees. Rather than providing specific dollar amounts (which become outdated quickly), consider these pricing factors: 

Upcoming change: RBA surcharges banned from 1 October 2026. The Reserve Bank of Australia (RBA) has confirmed that payment surcharges on EFTPOS, Mastercard and Visa will be prohibited from 1 October 2026. If your service currently applies a surcharge to card payments, this will no longer be permitted.

If you receive the Worker Retention Payment, there’s one more thing to consider

The Australian Government recently announced the Worker Retention Payment (WRP) will be extended to 30 June 2028. As part of this extension, fee growth restrictions apply for the next program year:

This is an increase from the 4.2% cap that applied in the previous year — so if you’re considering a fee adjustment ahead of 1 October, make sure any increase sits within your WRP grant conditions.

For full details, visit the Department of Education’s announcement.

Additional ECEC financial benchmarks to consider

Regulatory compliance costs—Budget for quality assurance, professional development and regulatory reporting requirements. 

Technology and resources—Modern ECEC services require investment in management software, educational resources and safety equipment. 

Marketing and enrolment—Allocate 2–3% of revenue for marketing activities to maintain enrolment levels. 

Childcare Services Cost Index (CSCI) new from August 2026: The Australian Bureau of Statistics has developed a new Childcare Services Cost Index (CSCI), which will become the benchmark reference point for measuring input cost movements in the ECEC sector from August 2026, replacing the WRP fee cap as the primary cost reference. Providers should familiarise themselves with the CSCI as it becomes the standard tool for benchmarking cost changes and informing fee decisions going forward.

Remember this when it comes to ECEC financial benchmarks 

Successful ECEC financial management requires balancing regulatory compliance, quality care delivery and business sustainability. Regularly reviewing these benchmarks against your actual performance will help identify areas for improvement and ensure long-term viability. 

For the most current regulatory requirements and financial guidelines specific to your state or territory, consult your local regulatory authority and consider engaging with an ECEC-specialist accountant.