Child Care Services

Child care is one of the most heavily regulated industries in Australia, and that regulation flows directly into how your finances need to be managed. You’re dealing with Child Care Subsidy (CCS) reconciliations, ACECQA compliance requirements, award-based payroll under the Children’s Services Award, funding from both state and federal government, and strict staff-to-child ratio obligations that directly affect your labour costs. A general accountant may not be familiar with how these moving parts interact, a specialist child care accountant understands the full picture and can help you stay compliant while running a financially healthy centre.

The right structure depends on whether you’re operating a single centre or planning to grow a group, whether you’re the sole owner or in partnership, and what your asset protection and tax minimisation priorities are. A company structure is common in this industry, but trusts and combinations of entities can also be appropriate depending on your circumstances. Getting this right from the start, rather than restructuring later, saves significant cost and complexity. Our team works through your specific situation before making any recommendation.

Payroll is one of the most complex and time-consuming parts of running a child care service. Staff are typically engaged under the Children’s Services Award or the Educational Services (Teachers) Award, both of which include multiple classifications, overtime rules, allowances, and penalty rates. Add to this the requirement to pay superannuation correctly, manage leave entitlements, and stay on top of annual award increases — and it becomes clear why many centre operators seek professional help. We can assist with payroll setup, software recommendations, and ongoing compliance to ensure your staff are paid correctly and your obligations to the ATO are met.

Profitability in child care is often squeezed by high and fixed labour costs, occupancy fluctuations, and thin margins between fee revenue and operating expenses. An accountant with industry knowledge can help you analyse your income per child place, benchmark your costs against industry norms, identify where spending can be reduced without affecting quality or compliance, and build a proper annual budget with cash flow forecasting built in. Many centre operators are surprised by how much clarity this process brings, and how manageable the business becomes once the numbers are genuinely understood.

Child care centres have a broad range of legitimate deductions available, including equipment and educational resources, building maintenance and lease costs, staff wages and training expenses, software and administration tools, insurance, and relevant professional fees. Capital purchases such as playground equipment or fit-out costs may also be eligible for depreciation claims or instant asset write-off depending on the thresholds in any given financial year. Knowing exactly what you’re entitled to claim, and how to substantiate it, is where working with a specialist accountant pays for itself.