Ready to launch a childcare business?
If you’ve been wondering how to start a childcare business in Australia, you’re not alone. With rising demand for quality early education and strict regulations to meet, many aspiring owners find the process confusing and time-consuming.
This guide breaks down every step, from choosing the right business structure to getting licences, funding, and compliance sorted, so you can start your business with confidence.
By the end, you’ll have a clear roadmap to move from idea to opening day with confidence, knowing exactly what’s required at each stage and how Sleek can support throughout.
Understanding the childcare industry in Australia
Before you dive into setting up, it’s important to understand how the childcare industry in Australia is structured. The sector includes several key service types, each catering to different needs and operating under distinct regulatory frameworks. Deciding which type of service you’ll provide will shape your setup, licensing, and staffing requirements.
- Long day care: The most common form of childcare for working families, offering full-day care (typically from 7 am to 6 pm) for children from birth to school age. These services are regulated under the National Quality Framework (NQF).
- Family day care: Run by approved educators from their own homes, this flexible, home-based model caters mainly to children from birth to five years old.
- Outside School Hours Care (OSHC): Provides before- and after-school supervision and school holiday programs for school-age children.
- Occasional care: Offers short-term, flexible care, ideal for parents who need temporary or part-time support.
- Early learning centres: Structured, highly regulated environments that provide early education programs aligned with the Early Years Learning Framework (EYLF V2.0) and the NQF.
While long day care and early learning centres often overlap, they’re not the same. Long day care services focus on extended hours and convenience for working families, while early learning centres deliver education-based programs that meet specific national standards.
Why childcare demand keeps rising in Australia
The childcare industry in Australia is expanding faster than ever, driven by a mix of social, economic, and policy changes. This strong and steady demand makes it a promising space for new operators and educators who want to turn their passion into a business.
Here’s what’s fuelling the growth:
- More working parents: With dual-income households now the norm, families increasingly rely on trusted childcare providers for consistent, quality care.
- Government support: The Child Care Subsidy (CCS) helps make childcare more affordable, encouraging families to enrol their children in approved services.
- Population and urban growth: Australia’s growing population and expanding suburbs are creating new opportunities for centres and family day care services.
These trends show no signs of slowing down and they highlight why now is a great time to start a childcare business in Australia, especially if you’re passionate about education, early learning, and community impact.
6 steps on how to start a childcare business in Australia
Follow these steps to legally start and successfully run a childcare business in Australia.
Step 1: Choose the right business structure and proceed with registration
Before you can welcome your first enrolment, your childcare venture needs a solid legal foundation. That starts with choosing a business structure that fits your goals and risk appetite.
Different setups come with different benefits and responsibilities:
- Sole trader: The simplest option, ideal for small home-based services. You’ll have complete control but also full personal liability for any debts.
- Partnership: A good fit if you’re starting with a co-founder or investor. Profits and responsibilities are shared, so it’s best to have a formal agreement in place.
- Company: A separate legal entity offering limited liability and scalability, perfect if you plan to grow or employ multiple staff.
Your choice should reflect your long-term vision, the level of control you want, and how much risk you’re willing to take on.
Once your structure is set, it’s time to make it official with key registrations:
- Australian Business Number (ABN), required for all businesses for tax and invoicing.
- Australian Company Number (ACN), needed only if you’re setting up as a company.
- GST registration, which is compulsory once your annual turnover exceeds AUD 75,000.
Sleek can help you choose the right structure and register your childcare business while ensuring compliance throughout.
Step 2: Licensing, approvals, and compliance requirements
Running a childcare business in Australia means meeting strict quality and safety standards. To operate legally, you’ll need several key approvals before you open your doors.
1. Provider and service approvals
- The first step is becoming an approved provider through your state or territory’s regulatory authority, as governed by the Australian Children’s Education and Care Quality Authority (ACECQA).
- Once approved, you can then apply for service approval, which authorises your specific childcare centre or family day care to operate under the National Quality Framework (NQF).
2. Local council and building requirements
Before fit-out or renovation, you’ll need approval from your local council for:
- Zoning
- Building safety
- Development applications.
These ensure your facility meets space, ventilation, outdoor area, and accessibility standards required for childcare use.
3. Staff qualifications and ratios
All educators and carers must meet ACECQA’s minimum qualification standards such as:
- Certificate III
- Diploma
- Bachelor of Early Childhood Education.
Centres must also maintain specific educator-to-child ratios depending on age groups to ensure adequate supervision and care.
4. Ongoing compliance
Once your centre is licensed, compliance doesn’t stop there. You’ll need to maintain:
- Up-to-date staff Working With Children Checks (WWCC)
- Health and safety policies and incident reporting
- Regular audits and quality assessments under the NQF
Keeping up with these requirements can be complex, especially as your team grows. Sleek can help you stay compliant through streamlined business registration, payroll setup, and ongoing record-keeping, so your focus remains on quality care, not paperwork.
A quick breakdown of all compliance requirements for childcare businesses:
Level | Requirement | Authority | What’s needed | Processing time |
National | National Quality Framework (NQF) | ACECQA; State and Territory Regulatory Authorities (enforcement) under the Education and Care Services National Law and Regulations | Ongoing compliance with National Quality Standards, education program, safety, staffing, and wellbeing | Continuous |
National | Provider Approval | State / Territory Regulatory Authority | Assessment of suitability, management capability, financial capacity, and background checks | 60 days |
State/Territory | Service Approval | State / Territory Dept. of Education or equivalent | Site inspection, nominated supervisor, policies, and compliance with local planning | 90 days (varies) |
Local government | Council / Building Approvals | Local Council | Zoning, development consent, and building safety compliance | 2-12 weeks |
All levels | Ongoing Compliance | National, State & Local Authorities | WWCC, staff ratios, qualifications, insurance, policies, and safety audits | Ongoing |
How to Set Up a Pty Ltd Company in Australia (in 8 Steps)
Step 3: Financial planning and startup costs
Like any business, your childcare venture needs a solid financial foundation before launch. From securing premises to buying educational materials, costs can add up quickly, so careful planning is key.
Typical startup expenses
- Premises and fit-out: Leasing, renovating, or converting a property to meet childcare design and safety standards.
- Licensing and approvals: Application fees for provider and service approvals, local council permits, and safety certifications.
- Equipment and supplies: Furniture, learning materials, kitchen equipment, and outdoor play facilities.
- Insurance and safety compliance: Coverage for public liability, workers’ compensation, and property.
- Staffing and training: Initial recruitment, induction, and ongoing professional development.
A breakdown of startup costs for your childcare business
Cost type | Estimated range | Notes |
Property | 200,000 – 1,000,000+ | Purchase or long-term lease for a centre-based facility, depending on size and location |
Licensing & registration | 2,000 – 10,000 | Includes provider and service approval fees, permits, and documentation costs |
Staff wages | 50,000 – 80,000 per staff annually | Based on qualifications, experience, and number of educators required |
Insurance | 2,000 – 10,000 annually | Covers public liability, professional indemnity, and workers’ compensation |
Fit-out & equipment | 20,000 – 100,000+ | Building modifications, learning spaces, kitchen, furniture, and outdoor play areas |
Supplies | 1,000 – 10,000 annually | Consumables like art materials, cleaning products, stationery, and learning tools |
The total cost to start a childcare business in Australia typically ranges between AUD 150,000 and 1 million, depending on the service type, location, and scale of your operations.
Budget and funding considerations
Create a detailed budget that covers your upfront setup costs, monthly operating expenses, and a cash buffer for at least the first six months. You may also explore government grants or small business loans designed to support early childhood education providers.
Step 4: Staffing and qualification requirements
Your team is at the heart of your childcare business.
- Under the National Quality Framework (NQF), every educator must hold or be working towards a recognised qualification such as a
- Certificate III
- Diploma
- Bachelor of Early Childhood Education
Approved staff must also maintain valid Working With Children Checks (WWCC), and centres must meet required educator-to-child ratios, which vary by age group and state.
Ongoing training in areas like first aid, child protection, and early learning best practices ensures compliance and quality care.
Step 5: Get the right policies for your childcare business
Strong internal policies aren’t just paperwork, they’re the foundation of a safe, compliant, and trustworthy childcare service. Under the National Quality Framework (NQF), every approved provider must have clear, up-to-date procedures that guide daily operations and staff conduct.
Here are the essentials to include:
- Health and safety: Emergency plans, first aid procedures, and clear child protection measures to ensure every child’s wellbeing.
- Food safety and hygiene: Guidelines for meal prep, storage, and allergy management to prevent health risks.
- Record keeping: Maintain secure, confidential records of attendance, incidents, and enrolments to meet legal obligations.
- Staffing and conduct: Define professional expectations, supervision responsibilities, and behaviour standards for all team members.
- Governance and operations: Procedures for enrolments, fee collection, complaints handling, and communication with families.
- Excursions and transport: Outline risk assessments, supervision ratios, and parental consent processes for offsite activities.
Keep these policies accessible, review them regularly, and make sure all staff are trained to follow them.
Step 6: Meet the legal obligations, documentation, and risk management
Running a childcare business in Australia involves more than approvals and policies — it also means complying with broader employment, privacy, and consumer laws that apply to all businesses.
1. Employment and workplace laws
Once you hire staff, you’ll need to follow the Children’s Services Award or Educational Services Award, depending on your service type. This covers pay rates, rosters, leave entitlements, and overtime. You’re also required to:
- Maintain a safe workplace under Work Health and Safety (WHS) laws
- Provide training for manual handling, hygiene, and emergency response
- Keep written employment contracts outlining roles, pay, and conduct expectations
2. Consumer protection and transparency
Your marketing, enrolment terms, and fee structure must comply with the Australian Consumer Law (ACL). Avoid misleading claims, clearly communicate your pricing, and ensure your enrollment terms are fair and transparent.
3. Privacy and data protection
Childcare services handle sensitive personal data, including health and family information. You must:
- Publish a clear Privacy Policy explaining what you collect and how it’s used
- Obtain written consent for photos, medical details, and emergency contacts
- Store all records securely and restrict access to authorised staff only
4. Essential legal documents
Having the right documents helps prevent disputes and maintain compliance. These typically include:
- Parent or guardian enrolment agreement
- Staff handbook and employment contracts
- Privacy policy and website terms (if you take online enquiries)
- Excursion and consent forms
- Supplier or service agreements for cleaning, catering, or maintenance
5. Insurance and risk management
At a minimum, childcare providers should hold public liability, workers’ compensation, and property insurance. These don’t replace strong policies, they protect you when things don’t go as planned.
How Sleek can help you start your childcare business
Starting a childcare business isn’t just about creating a nurturing space, it’s about getting the registrations, approvals, payroll, tax, and compliance right from day one. That’s where Sleek takes the admin load off your hands.
You’ll get:
- Fast, stress-free setup: We handle your company registration, ABN, GST, and business name so you’re ready to operate sooner.
- Ongoing bookkeeping and accounting: Stay on top of your finances, manage cash flow, and lodge BAS and tax returns without hassle.
- Expert tax guidance: Maximise eligible deductions, from equipment and fit-outs to utilities and staff training, while staying fully compliant with ATO requirements.
- Payroll and superannuation management: Simplify staff payments and ensure compliance with Fair Work and superannuation laws.
- Transparent pricing: No hidden fees, just everything you need to run your childcare business with confidence.
Whether you’re opening your first family day care or building a multi-centre brand, Sleek makes setup, compliance, and accounting seamless, so you can focus on supporting families, not managing paperwork.
FAQs on how to start a childcare business in Australia
While the terms are often used interchangeably, there are key differences:
- Childcare centres focus on supervision and care, usually for working families.
- Daycare generally refers to long day care facilities providing full-day care and basic learning activities.
- Early childhood centres go a step further, delivering structured educational programs aligned with the Early Years Learning Framework (EYLF) and focusing on developmental outcomes.
If your service prepares or serves food, you must comply with the Food Standards Code (including Standard 3.2.2A), and in most councils you’ll also need to register as a food business with your local authority. Requirements can vary by state or territory
The approval process can take 3 to 6 months depending on your state or territory. Provider approval usually takes about 60 days, while service approval can take up to 90 days or more, though timeframes vary by state and depend on how complete your application and local planning approvals are.
Preparing all documentation upfront, such as policies, staffing details, and building approvals, helps avoid delays.
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16,000 surveyed clients.
