Demand for childcare services in Australia likely remains stable this year even if there are certain changes within the industry.
In 2017, the Australian Bureau of Statistics said more than 1.8 million children attended a formal or informal childcare centre. If the previous year is any indication, setting up your own childcare facility is a good idea for a small business.
A childcare management company like Early Learning Management could help you plan all of the requirements for establishing a new centre. Those who are specific about the type of services should consider long day care facilities, which were the most common type of formal care. Care service before and/or after school hours ranked next.
Parents and guardians spent an average of $110.5 per week in 2017 for these services, while children stayed for an average of 16 hours every week. Take note that spending may change for this year, following the recently enacted Child Care Subsidy for qualified families. Some people who are unable to afford formal care rely on grandparents, which have been the most popular type of informal childcare.
Grandparents are becoming more involved in taking care of their children’s sons and daughters by spending less time at work. This trend will be more common as the cost of formal care increases, particularly in urban areas.
Before the implementation of the Child Care Subsidy, long day care services cost between $70 and $177 per day. Services before and after school hours ranged between $15 and $30 per morning session, while an afternoon session cost from $25 to $45.
Some families may choose to spend less on formal care services due to the increasing costs, but that doesn’t mean formal childcare services are no longer a good idea for a business. You can increase your chances of success by consulting first with a management company.