Childcare Centre vs Nanny
The childcare vs nanny decision usually turns on three things: cost after subsidy, what your child needs at their stage, and how much backup your family has. A nanny offers one-on-one care at home, while a centre offers a team, peers and a structured program, with Child Care Subsidy. We run a centre, and we have tried to be fair to both.
Plenty of families on the North Shore weigh up a nanny, especially with more than one child, long commutes or unusual hours. Others choose a centre for the subsidy, the social side and the reliability. Many end up with a mix. This guide sets out the trade-offs honestly. More decision guides are in our resources for parents.
The real cost comparison after CCS
The biggest cost difference is subsidy. Approved childcare centres attract Child Care Subsidy, while a nanny you employ privately does not. At our $170 daily fee, a family earning $120,000 pays a gap of about $37 a day after CCS. A privately employed nanny's full hourly rate, plus any employer costs, comes out of your pocket.
With two or more children, a nanny's cost is shared across them, while centre gap fees are per child. That is why nannies become more competitive for larger families.
If you employ a nanny directly, you may take on employer obligations such as superannuation, insurance and leave. Check with the Fair Work Ombudsman and the ATO.
Work out your own centre gap with our childcare cost estimator.
What a nanny offers that a centre cannot
A nanny offers one-on-one attention in your own home, on your family's schedule. There is no drop-off, no packing bags, and your child keeps their own routines, cot and toys. For families with several young children, irregular hours or a child who needs quiet, that convenience and continuity is valuable.
Care can fit around shift work, early flights or late meetings.
Siblings stay together, and school pick-ups can be part of the day.
Babies nap in their own cot, on their own schedule.
A nanny may help with children's washing or meals, if you agree on it.
A mildly unwell child can often stay home with a nanny instead of missing care.
Nanny pluses
- One-on-one attention
- Your home, your routine
- Flexible hours
- Siblings together
Care at homeWhat a centre offers that a nanny cannot
A centre offers a team of qualified educators, a planned program based on the Early Years Learning Framework, and other children every day. It is regulated, assessed against the National Quality Standard, and does not close when one person is sick. For many families, that reliability and accountability is the deciding factor.
Structure and oversight
- Qualified educators and an early childhood teacher
- Regulation, assessment and ratings
- Documented learning in journals
- Several adults on site at all times
At Lead, also included
- Five meals a day, nappies and sunscreen
- Cooking, sport, yoga and language classes
- School Readiness Program
- A large natural outdoor space
The socialisation question, honestly
Babies do not need a group of peers to thrive; they need warm, responsive adults, which a good nanny can provide. From around two to three, children increasingly benefit from regular play with other children, which a centre provides every day and a nanny can arrange through playgroups, library sessions and outings.
Group settings give children practice at sharing, waiting, negotiating and joining in, which helps at school.
A nanny who takes children to playgroups, storytime and parks can offer plenty of social time.
The year before school is when a structured group program matters most. Read about our School Readiness Program.
Sick days and backup logistics
Sick days work differently. A centre stays open when an educator is sick, but your child must stay home when they are unwell. A nanny can usually care for a mildly unwell child, but if the nanny is sick or on leave, you have no care at all unless you have arranged backup.
Centres close on public holidays, and families need their own plan for those days.
With a nanny, plan for their annual leave, which rarely lines up with your own.
Children in group care catch more illnesses at first, which can mean time off work in the first year.
Read our guide to when a child is too sick for daycare.
Who covers when
- Child sick
- Nanny: often yes. Centre: no
- Carer sick
- Nanny: no care. Centre: open
Plan the gapsNanny sharing and hybrid setups
Many families combine options. A nanny share splits one nanny between two families, lowering cost and adding a playmate. A hybrid might mean two or three centre days for the program and friends, plus a nanny or grandparent on other days. Hybrids can offer the best of both, if the logistics work.
Nanny shares need clear agreements on hours, location, costs and what happens when a child is sick.
Centre days attract CCS, which lowers the overall cost of a hybrid week.
Some families use a centre for younger children and a nanny for school pick-ups for older ones.
Government-subsidised care in the home, called In Home Care, exists, but it is only for families who cannot use other approved care, such as those with very unusual hours or complex needs. The Department of Education explains In Home Care eligibility.
Which suits which stage
There is no single right answer, but patterns are common. Some families prefer a nanny or family care in the first year, then move to a centre as children become more social. From around three, and especially in the year before school, a centre's group program and school readiness focus become more valuable.
Babies: warm, consistent care matters most. Both options can provide it. Our nursery takes babies from six weeks.
Toddlers: play with other children becomes more interesting and important.
Preschoolers: a structured program, friendships and school readiness come to the fore.
Talk it through with us on (02) 7238 8668.
Nanny or centre, answered
Is a nanny subsidised? Generally no+
Generally no. A nanny you employ privately is not an approved child care service, so Child Care Subsidy does not apply. The exception is In Home Care, a government program for families who cannot access other approved care, such as those working unusual hours or with complex needs, assessed by a state support agency.
Which is better for a baby?+
Either can be excellent. Babies need warm, responsive and consistent adults, which a good nanny or a good nursery room both provide. A nanny offers one-on-one attention at home; a nursery offers a team of educators, a 1 to 4 ratio, and subsidy. Visit and trust what you see.
Can we combine both?+
Yes, and many families do. A common mix is two or three centre days for the program, friends and subsidy, plus a nanny, grandparent or parent on other days. CCS applies only to the centre days. Book centre days early, as popular days fill first.
See what a centre day looks like at our St Ives centre.
Weighing it up?
Visit our rooms and see a day at Lead for yourself.