Family Day Care vs Centre Based Day Care: A Practical Comparison

Family Day Care and Centre Based Day Care are the two main forms of approved childcare for children under school age in Australia. Both are CCS-eligible, both operate under the National Quality Framework, and both can provide excellent care. The differences — in cost, flexibility, environment, and how CCS applies — are significant enough to affect which option suits a given family.

What each service type is

Centre Based Day Care (CBDC) A dedicated facility, usually purpose-built or converted, run by a childcare organisation — either a large national operator, a community not-for-profit, or a privately owned centre. Children are grouped by age into rooms (babies, toddlers, pre-kindy, kindergarten). Staff ratios and room sizes are regulated. Most centres operate Monday to Friday, 7am to 6pm or 6:30pm. Capacity ranges from around 30 to 120+ children depending on the centre size.

Family Day Care (FDC) Care provided in the private home of a registered FDC educator. Educators are registered with an approved FDC scheme — the scheme provides coordination, oversight, and quality assurance. Group sizes are small, typically 4 to 7 children across different ages. Educators set their own hours, which can include evenings, weekends, or non-standard hours that centres cannot offer. Care feels more home-like and the educator-to-child relationship is closer.

The CCS hourly cap difference

This is the most important financial distinction between the two service types for CCS purposes.

CBDC has the highest cap for children under school age — $14.63/hr. FDC has a single cap for all ages at $13.56/hr.

What this means in practice — if both a centre and an FDC educator charge $14/hr:

• At CBDC: $14/hr is below the $14.63 cap — CCS applies to the full fee
• At FDC: $14/hr exceeds the $13.56 cap by $0.44/hr — you pay the $0.44 above-cap amount in full per hour

The difference is small at $14/hr. But many FDC educators charge $13–$16/hr, and if fees are above $13.56, the above-cap amount accumulates across a full week of care.

Worked example at the same daily fee:

Family: 80% CCS, 4 days/week, 10hr sessions at $140/day ($14/hr)

Same daily fee, different gap — because the applicable cap is different. For a family using FDC 4 days per week, this difference compounds to approximately $1,500 per year.

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Practical differences

Flexibility FDC educators can offer hours that centres cannot: early starts, late finishes, weekend care, care during public holidays, and more consistent access during school holidays. For families with non-standard or variable work hours, FDC can solve problems that a fixed-hours centre cannot.

Centres offer predictability and backup — if your regular educator is unavailable, the FDC scheme may offer a replacement educator, but this is not guaranteed. Centres always have staff coverage.

Group size and environment FDC: typically 4–7 children across multiple ages, in a home environment. The smaller group and multi-age mix can suit children who find large group settings overwhelming. Care is genuinely home-like — the children may be there while the educator's own family is at school or home.

CBDC: typically 8–20+ children per room depending on age group, in a purpose-built facility. Age-grouped rooms mean children are surrounded by peers at the same developmental stage. Facilities usually include outdoor play spaces, purpose-built equipment, and structured programs.

Educator continuity FDC: very high continuity — your child has the same primary educator every day. This can support strong attachment for young children. The risk is disruption when the educator is ill, on leave, or leaves the scheme.

CBDC: room staff may change due to rostering, leave, and turnover. Some centres maintain high continuity; others have significant staff movement. This is one of the most important questions to ask when visiting a centre.

Cost FDC educator fees are often — though not always — lower than centre fees. Educators have lower overhead costs (no rent on commercial premises, lower staffing costs) and may pass this on. However, some experienced educators in high-demand areas charge at or above centre rates.

The gap fee comparison depends on both the actual fee charged and which hourly cap applies. FDC's lower cap means the same nominal fee can cost more out of pocket than at a centre when fees are above $13.56/hr.

Regulation and oversight Both service types operate under the National Quality Framework and are assessed against the National Quality Standard. FDC schemes are responsible for educator registration, quality monitoring, and coordination. Individual FDC homes are visited and assessed.

The quality rating of both centres and FDC educators is publicly available on the Starting Blocks website.

How to find an FDC educator

Unlike CBDC, where you search for a centre by suburb, FDC requires going through an approved FDC scheme. Each scheme operates in a geographic area and manages a pool of registered educators.

Steps:

1. Search for FDC schemes in your area on Starting Blocks using "Family Day Care" as the service type
2. Contact the scheme's coordinator and describe your care needs (days, hours, child's age)
3. The coordinator matches you with an available educator who fits your requirements
4. If the match works, you enrol through the scheme

You do not approach educators directly without going through the scheme. The scheme is the approved provider for CCS purposes — not the individual educator.

When FDC tends to suit families better

• Non-standard hours (early starts, late finishes, weekends)
• Children who are unsettled in large group environments
• Families who want a consistent one-on-one relationship for a young child
• Smaller towns or areas where centre-based places are limited
• Families who want care during periods when centres are closed

When CBDC tends to suit families better

• Standard work hours (7am–6pm coverage)
• Children who thrive in social, peer-group environments
• Families who need certainty about backup if a carer is unavailable
• Access to kindergarten programs delivered within the service
• Families who want a formal learning program and structured activities

Key takeaways

• Both FDC and CBDC are CCS-eligible and operate under the National Quality Framework
• The hourly cap difference matters: CBDC has a higher cap for under-school-age children ($14.63) than FDC ($13.56) — the same fee can cost more out of pocket at FDC if it exceeds the FDC cap
• FDC typically offers more flexibility in hours; CBDC offers more predictability and coverage
• Group sizes are smaller in FDC; peer interaction and structured programs are typically stronger in CBDC
• FDC is accessed through an approved scheme, not directly with educators
• Quality ratings for both service types are publicly available on Starting Blocks

Frequently Asked Questions

Can I use FDC for one child and CBDC for another at the same time?

Yes. CCS applies separately to each enrolment at each approved service. Your hours entitlement is per child, so using FDC for one child does not affect the entitlement for another.

If my FDC educator is sick, what happens?

This depends on the FDC scheme. Some schemes have a relief educator pool and can offer an alternative carer. Others do not guarantee coverage. Ask the scheme coordinator about their sick day policy before enrolling. Most families using FDC have a backup plan (partner, grandparent, or occasional CBDC place) for this reason.

Is the quality of FDC as good as a centre?

Both service types can be excellent or poor. The National Quality Framework applies to both. Check the quality rating of any specific FDC scheme and individual educators on Starting Blocks. An experienced educator with a high quality rating working under a well-run scheme can provide care equal to or better than a centre — and vice versa.

My FDC educator charges $15/hr for a 10-hour day. What is my actual out-of-pocket cost?

At $15/hr for a 10-hour session, the daily fee is $150. The FDC cap is $13.56/hr, so CCS applies to $135.60. The above-cap amount is $14.40 per day (you pay this in full). On 80% CCS: subsidy = 80% × $135.60 = $108.48, regular gap = 20% × $135.60 = $27.12, above-cap = $14.40. Total daily gap = $41.52. Over 4 days per week, $166.08 per week.

Does switching from CBDC to FDC require a new CCS assessment?

No. Your CCS percentage and hours entitlement are not reassessed when you switch service types. You simply need a new enrolment confirmed in myGov. The applicable hourly cap changes automatically based on the service type of the new provider.

This is general guidance only. For personalised advice, contact Services Australia at 136 150 or visit servicesaustralia.gov.au/child-care-subsidy.

Related guides

• Childcare Fees Above the Hourly Cap
• OSHC and CCS
• Switching Childcare Centres: What to Re-check for CCS
• CCS Hours Explained: Charged Hours vs Attendance
• Average Childcare Cost in Australia