Nanny vs Daycare: Which One is Right for Your Family in 2025?

Nanny vs Daycare in Australia: The 2025 Overview

Every family is different, and choosing between in-home nanny care or a daycare centre depends on your child’s needs, your work schedule, and what you value most - cost, flexibility, or personalisation.

In 2025, Australian families are facing rising childcare costs, increased workplace flexibility, and a greater focus on personalised care. That makes this decision more important than ever.

Let’s look at the facts.

1. Cost Comparison

Daycare Fees (2025)

According to the Australian Government’s Starting Blocks website:

• Average daycare cost: $130 to $170 per day per child
• Fees vary by location and centre quality
• Child Care Subsidy (CCS) applies for eligible families

Nanny Costs (2025)

• Typical rate: $30 to $40 per hour (gross), depending on experience and duties
• Families are responsible for paying superannuation (11% from July 2025), tax, and leave entitlements if the nanny is an employee
• Services like Pay The Nanny can help manage this legally and compliantly

For an up to date breakdown on the current hourly averages, check out our annual pay guidance here.

Example Weekly Cost (One Child, 40 hours per week)

Best for budget-conscious families with one child: Daycare

Best for multiple children or flexible care needs: Nanny

2. Flexibility and Schedule

Best for flexibility and home-based convenience: Nanny

3. Child Development and Socialisation

Daycare Pros

• Structured early learning programs based on the Early Years Learning Framework
• Regular social interaction with peers
• Focus on school readiness

Nanny Pros

• One-on-one attention tailored to your child
• Ability to follow your routines and parenting style
• Nannies can take children to parks, libraries, and playgroups

Considerations

• Daycare offers built-in socialisation, but less personalised care
• Nannies offer continuity, especially beneficial for babies and toddlers

Some families use both daycare and a nanny in a split arrangement to get the best of both.

4. Regulations and Qualifications

Daycare

• Licensed under the National Quality Framework
• Staff must hold early childhood qualifications
• Centres are regularly audited and reviewed

Nanny

• No formal regulation required in most states
• Families should still expect:
• Working With Children Check (WWCC)
• First Aid certification
• References and experience

Pay The Nanny tip: If you hire a nanny, you are an employer. This means handling tax, super, and leave entitlements, unless you use a provider like Pay The Nanny.

5. Illness, Safety, and Continuity of Care

Daycare

• Children are more likely to catch and spread illnesses
• Staff turnover can impact consistency
• Strict safety policies in place

Nanny

• Reduced exposure to illness
• Your child receives consistent care from the same person
• Safer and more controlled home environment

Best for babies or children with sensitive immune systems: Nanny Best for building social confidence and peer learning: Daycare

6. Suggested Nanny Agencies in Australia

If you are considering hiring a nanny, here are some great agencies to explore:

1. Marvellous Nanny Services

2. The Nanny Collective

3. Rock my Baby

4. Sydney Nanny

5. Mothercraft

6. NouNou Nannies

These agencies can help you find a vetted, experienced nanny and work alongside services like Pay The Nanny to handle all the paperwork.

7. Which Families Typically Choose What?

Final Thoughts

There’s no one-size-fits-all solution. The right choice depends on your budget, your child’s needs, and your family’s schedule. For families needing flexibility, home-based care, or support with multiple children, a nanny is often the better choice. If affordability, structure, and peer interaction are more important, daycare might be the way to go.

And if you do go down the nanny route, Pay The Nanny can take care of all the admin. We handle tax, super, payroll, and compliance, giving you peace of mind and time back with your family.

Need help with nanny payroll?

Let Pay The Nanny take care of the paperwork so you can focus on your child. Learn more