Family daycare fees

[Butterflyblue]

Family daycare fees vary depending on range of factors,
this is basic run down of how it all works:

SCHEME
A FDC educator cannot work for themselves they must work for an approved provider with a scheme (service).

FEES
A scheme will usually have one of two fee schedules for their educators:
A set range – A minimum and or maximum hourly fee range for example $5.00-$10.00 an hour per child
OR
Educator fees – Each individual educator will set their own fees as they see fit. This is usually a set price for example $8 an hour per child

If there is a fee range an educator must set their hourly fee within the range. Individual educator fees vary depending on the educator


LEVIES
All schemes will charge an administration levy
The administration levy covers various costs. This levy is paid by the parent
Some schemes may charge an educator levy is also.
The purpose of this levy can be to cover the cost of training or provide paperwork etc

REMUNERATION
The educators remuneration or their actual earnings will be the hourly fee minus any levies
For example
the hourly fee is $8 per child per hour
the administration levy is $1 and the educator levy
is .50, totaling $1.50
8-1.50= remuneration
= $6.50 per child per hour
Your remuneration, number of days a week you wish to work and the number of children and hours you will have them for will give a rough estimate of annual income.
Remember there are deductions available, talk with your tax accountant or an accountant that specializes in fdc to learn more on what claims can be made on expenses. This will give you a clear idea of what to expect and how to manage budgets.

STANDARD,MINIMUM CARE HOURS & EXTRAS
Standard hours exist in most scheme policies, so for example 8AM-5PM or something similar. Outside of these times, overnight, on weekends, public holidays etc the hourly rate will be more.
Minimum hour policies can vary from scheme to scheme.
Some schemes will allow educators to set minimum hours, others will not.
Generally in family daycare food and drink, nappies, wipes etc are provided by the parent.
Some educators will provide the above, but most schemes prefer to have these as additional costs on top of an hourly fee the same as transport to and from kinder or school costs extra. The scheme sets the policy on all of the above and educators must adhere to the policies.

Educators fee
Generally speaking an educators fee should reflect factors such as their experience, qualifications environment and the quality of their program and the activities offered. Other factors may include location and extras provided by the educator.
The schemes NQS rating may also be reflected in the price.
The children’s services award does not apply to FDC educators, only FDC management (person(s) in charge and educator support staff).

Specific information is sometimes provided after an educator joins a scheme and a parent is enrolled, so if you want details then ask beforehand.

[Lorina]

Comparing to an LDC, FDC costs per child are pretty competitive and you can offer a wide range of other services... such as dinner for children, overnights etc.

How much for overnight, would you charge? So if your hours are 8AM to 5PM you charge extra for 5PM to 8AM isn't it since it's outside the usual hours?

What about excursions to shopping malls, playgroups, library etc, are these all included in the price you set?

If you have you're own children, who also attends care do you have to pay the admin and educator levy for them as well?

,
Lorina

[Butterflyblue]

Hi Lorina, you actually can't be paid for taking care of children related to you,including your own. There are a whole heap of other regs and laws about this -

Family Daycare: caring for your own children or children related to you – VERY IMPORTANT!


You cannot be paid for taking care of children related to you, including your own children
There is no entitlement to Child Care Subsidy or Additional Child Care Subsidy where a Family Day Care educator, or their partner, cares for:
 their or their partner's child, including a foster care child, adopted child, kinship child or child for which they otherwise have legal responsibility, or
 their or their partner's brother, sister, half-brother or half-sister, step-brother or step-sister.

You also cannot send your child to a Family Daycare educator whilst you provide Family Daycare
 There is no entitlement to Child Care Subsidy or Additional Child Care Subsidy where a Family Day Care educator's, or their partner's, child is provided with care by any Family Day Care service if they (the educator) provide care for a Family Day Care service on that same day, unless (in summary) either:

the child is one of the following:
an eligible disability child (has evidence of current diagnosis by a qualified practitioner of a recognized condition)
an eligible Inclusion Support Program child (for whom the service is receiving Inclusion Support Program assistance)
a remote area child (living in an area designated as remote, or very remote, under the Australian Standard Geographical Classification)

OR

the parent has supplied evidence that, at the usual time that care is provided, they either:
work in paid work that is not for an approved Family Day Care service, or
study (are enrolled in education or training towards a recognised qualification provided by a registered training organisation).

RATIOS
No more than seven children at a time may be in the care of each Family Day Care educator, and no more than four of the children can be preschool age or under. These are requirements of the National Law (not the Family Assistance Law):

Family Daycare -
1:7 educator to child ratio
Maximum of four children preschool age or under. Ratio includes the educator’s own children younger than 13 years of age if there is no other adult to care for them.


Caring for children related to you
Under the Family Assistance Law, children who are a niece/nephew, cousin or grand/great-grandchild of a Family Day Care educator must make up fewer than half of the children to whom the educator is providing care within any fortnight.

These are very important regulations and laws. Non-compliance can result in a scheme having their license cancelled and educators subject to individual fines for failure to disclose information they are legally required to. Neither the scheme nor educator can claim they are/were unaware of the above as a defence.

https://www.education.gov.au/child-care ... e-services

[Butterflyblue]

For care outside core hours such as overnight etc the hourly fee will usually be more per hour.
The amount could be between $1-10.00 or maybe more, it really depends on the schemes policies and the educator.
Other factors such as location may also contribute.
For meals (breakfast, snack, lunch and dinner) there will be an additional charge, usually per meal.
Some schemes and educators will vary the price depending on age, which meal is required, menu etc
The amount is usually $5> per meal, however specific requirements,costs, diet etc may mean it is higher than this, extras such as dinner for an older child plus dessert for example.

Activities outside of the home that are free such as going to the shops and local library are usually included in the hourly fee and the educator will usually cover the cost for transport to and from.
Activities that have costs attached such as playgroups, zoo, aquarium, cinema etc are usually paid for by the parent as in schools.
An educator may be able to set costs (including transport for activities included in the hourly fee) against their business when filing a tax return, so they do not have to cover transport etc out of their own pocket.
This is between the educator, the ATO and any accountant etc the educator may consult, not parents.

The great thing about family daycare is the variety and all the options it gives its educators, parents and of course the children.
For example an educator may work a few night shifts, weekend etc and earn much more for it
Parents who need specific care such as shift worker or on call employee have a childcare option available to them that LDC and others don’t usually provide
The benefits for children include small ratios, more variety in their learning experiences, a second home, center quality resources and so much more!