How does your centre compare?

Gain insight into how other childcare services in your region are operating.

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Key Insights:

Average Daily Rates (ADRs) across Australia is $103, and increasing.

The highest LDC monthly revenue potential per place is in Sydney at $28k. 

Victoria has some of the largest services, with an average of 94 places.

Childcare staff costs in Queensland are higher than average at 58%.

Learn:

What is driving Sydney’s high Revenue Per Available Place ($90 RevPAP).

Why Melbourne’s Occupancy levels are some of the lowest at 76%.

What Queensland services can do to improve ADR above $93.

Which markets in Australia have an average $2.6m revenue potential. 

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Melbourne Occupancy

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NSW Staff Costs

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NQS Occupancy Variance

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LDC Growth in QLD

Understand how your service compares to others.

Every 1% increase in occupancy adds $18,849 in revenue. Unfortunately, many wrongly believe that increased occupancy always entails working longer hours. Nothing could be further from the truth.

In the face of an oversupply of child care providers, fees charged by centres may decrease to attract parent spending and maintain revenue streams. This effect may be exacerbated by the minimum occupancy rates imposed on the centres.

While this would undoubtedly benefit parents in the short term, through greater numbers of places available and lower fees, it will place a financial strain on established centres. Child care centres may be forced to reduce expenses by increasingly relying on casual staff and delaying new equipment purchases.

It can be said that areas of under supply of child care services remain across Australia. However, strict regulation surrounding child care centre planning and the long application processes may cause industry supply to further lag behind the geographical trend in demand in the future.

Falling labour force participation may have the dual result of less income available for parents to cover the out-of-pocket expenses for child care, and that parents may have greater time available to care for their children in the home. These two factors may take some of the pressure off the expansion of the child care sector in the short-term.

Real household discretionary income also impacts the capacity of parents and guardians to fund the out-of-pocket costs of child care. It is a possibility that stagnant wages growth and rising household expenses (such as mortgage repayments and utility bills) may restrict household incomes and thus parents’ ability to afford child care services, also causing growth in the sector to cool in the short-term.

 

Download the full guide to learn more.