Childcare in Australia is expensive — among the most expensive in the developed world. The contract you sign when enrolling your child determines not just the daily fee but also the gap fee (what you pay after the Child Care Subsidy), public holiday charges, late pickup penalties, notice periods for withdrawal, and what happens when your child is absent. Many parents sign these contracts under pressure to secure a spot without understanding the full financial commitment. With the Child Care Subsidy changes and increasing regulation, understanding your contract terms is more important than ever.
What is a Fees and Notice?
A childcare contract (or enrolment agreement) is a legally binding agreement between a parent or guardian and a childcare service provider (long day care, family day care, or outside school hours care) that sets out the terms of care for your child. It covers days and hours of care, fees, payment terms, absence policies, public holiday charges, notice requirements for changes or withdrawal, and the provider's obligations regarding care quality and safety. The contract operates within the framework of the Education and Care Services National Law and the Child Care Subsidy system administered by Services Australia.
Red flags to watch for
Many centres charge full fees for public holidays. While this is legal, it can add up to 8-10 days per year of fees for no care. Some centres don't clearly disclose this in the enrolment process.
A four-week notice period means paying for a full month of childcare after you've decided to leave. For infant rooms at $150-$200+ per day, that's $3,000-$4,000 in exit costs.
Childcare fees in Australia have been rising faster than inflation. If the contract doesn't cap annual increases or provide advance notice requirements, your costs can escalate significantly mid-year.
The Child Care Subsidy covers 42 absence days per financial year (no documentation needed). After that, you pay the full fee with no subsidy. Some centres charge full fees even for documented illness absences beyond this limit.
While late fees are reasonable, some centres charge $1 per minute or more after a very tight window (e.g., the exact closing time rather than a 5-10 minute grace period). This can result in fees of $30-$60 for being caught in traffic.
Your legal rights
Childcare in Australia is regulated under the Education and Care Services National Law (applied through state and territory legislation) and the Education and Care Services National Regulations. The Australian Children's Education and Care Quality Authority (ACECQA) oversees quality standards. The Child Care Subsidy is governed by the Family Assistance Legislation Amendment (Jobs for Families Child Care Package) Act 2017. Under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010), childcare contracts are subject to unfair contract terms provisions — a term in a standard form contract may be void if it causes significant imbalance, is not reasonably necessary, and would cause detriment if relied upon. Parents can raise concerns with the relevant state or territory regulatory authority.
Questions to ask before you sign
- 1What is the daily fee and what is my estimated gap fee after the Child Care Subsidy?
- 2Are fees charged on public holidays when the centre is closed?
- 3What is the notice period for withdrawal and can it be waived in hardship?
- 4How much advance notice is given for fee increases and is there an annual cap?
- 5What is the late pickup fee structure and is there a grace period?
- 6What happens when my child exceeds the 42 CCS allowable absence days?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.