Article

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

By Mark Hudson · 19 June, 2025
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

By Mark Hudson · 06 January, 2022

8 Tips for Getting Childcare Sorted for 2022

Struggling to juggle kids, career and childcare? From nannies to au pairs, daycare to grandparent care—this guide walks you through your best childcare options and how to stay on top of the admin without burning out.
Read more...
By Mark Hudson · 09 July, 2021

Nanny v Daycare

Choosing between daycare and a nanny? It’s one of the biggest decisions for working parents. We break down the pros and cons—from cost to flexibility - to help you decide what’s best for your family. Plus, how Pay The Nanny can make employing a nanny stress-free
Read more...
By Mark Hudson · 20 April, 2025

2025 Guide to Employment Contracts for Nannies in Australia

Hiring the right nanny is step one; step two is a compliant nanny employment contract. At Pay The Nanny, we offer all our customers a free, up‑to‑date nanny agreement built to 2025 Australian rules, so you can hire confidently with our contract for nannies.
Read more...
By Mark Hudson · 21 January, 2025

Nanny Pay Rates for 2025

Wondering how much to pay your nanny in 2025? Our updated Nanny Pay Rates Guide covers average rates, state-by-state breakdowns, and why wages have increased. Plus, insights on the Miscellaneous Award and factors driving pay differences. Stay informed and pay your nanny fairly this year!
Read more...
By Mark Hudson · 15 March, 2022

Hourly Rates for Nannies in Australia in 2022

Curious about how much a nanny cost back in 2022? This guide outlines typical hourly rates, entitlements, and employer obligations from that year. For the most up-to-date info, be sure to check out our 2025 nanny pay guide—it's packed with everything you need to know this year.
Read more...