Australian Childcare Occupancy: Weekly Review — 19 to 25 September 2026

Weekly Research Review — 19 to 25 September 2026

This Week’s Headline

New June quarter 2026 Child Care Subsidy data shows 30,280 fewer children (down 2.1%) in subsidised care than a year earlier, even as centre-based day care services grew by 279 and fees kept rising. More centres are now competing for fewer children.

Key Metrics at a Glance

1,393,620 — children in the CCS claimant cohort, June quarter 2026 (down 2.1% year on year)
9,963 — centre-based day care services, up 279 (2.9%)
$14.60 — average centre-based day care hourly fee, against a CCS hourly rate cap of $14.63
3.8% — rise in the average hourly fee across all care types, to $13.90
~$9 million — sale price of a 75-place centre in Crows Nest, Sydney

Enrolment & Occupancy Data

The Department of Education’s Child Care Subsidy data for the June quarter 2026 was reported by The Sector on 23 September. It counts 1,393,620 children from 989,100 families in the CCS claimant cohort. That is 30,280 fewer children (2.1%) and 16,700 fewer families (1.7%) than a year earlier. Over the same period, the number of CCS-approved services rose from 15,214 to 15,438. Centre-based day care reached 9,963 services, up 279 or 2.9%. In plain terms, supply is still growing while the number of children using care is shrinking.

The fall was spread across the major states. NSW had 444,500 children in approved care (down 1.9%), Victoria 348,000 (down 2.1%), Queensland 318,420 (down 2.1%) and the ACT 29,400 (down 4.0%). Centre-based day care is still the largest care type, with 783,860 children. Fees kept climbing: the average hourly fee across all care types rose 3.8% to $13.90. The centre-based day care average of $14.60 now sits just 3 cents under the $14.63 hourly rate cap. Total CCS and ACCS spending rose 0.7% to $3.88 billion.

Closures & Suspensions

More operators showed signs of financial stress this week. On 22 September, The Sector reported that the lender Finexia has taken operational control of childcare businesses after enforcing defaulting loans. These include its exposure of about $24 million to Orchard Early Learning, which went into receivership on 27 February 2026. Finexia has stopped new lending, is moving toward running childcare services itself, and must restate two years of financial statements as a result.

For context, Edge Early Learning remains in voluntary administration with KordaMentha. On 8 September, InDaily reported a 14-day emergency closure of one of Edge’s South Australian centres (8 to 21 September), affecting just over 100 enrolments, after a serious food allergen incident. We found no confirmed new Edge developments published during this week.

Policy & Regulatory Updates

A large Victorian study reported on 22 September found that children who had two years of funded kindergarten made five months’ more progress in language development than those who had one year. They also made two to three months’ more progress in memory and problem-solving. The study covered 149 services and about 2,200 children, with final results, including an economic analysis, due in 2027.

Investment & Property Market

Demand for well-located sites held up. A 75-place centre at 8 Rodborough Avenue, Crows Nest, sold for about $9 million through Colliers. The buyer is the Sydney operator Discover My World Early Learning Centre and the seller is the not-for-profit SDN Children’s Services. The centre will be refurbished from December and reopen in early 2027, and the 1,473 sqm site, zoned R4, also has development potential. In Melbourne, CBRE is seeking expressions of interest for a vacant, purpose-built, 124-place centre at 1 Melfort Avenue, Essendon. It is marketed with planning approval in place, in an area CBRE describes as undersupplied.

At Arena REIT, which owns 274 early learning centres, chair David Ross will retire after the 20 November AGM. Former AMP Capital CEO Adam Tindall has been named chair elect.

What This Means for Independent Centre Operators

The June quarter figures confirm what many independent operators are already seeing: new supply is outpacing demand, and families are paying more per hour. With the average centre-based day care fee only 3 cents under the cap, families compare value closely, so your centre needs to show its value before a parent ever picks up the phone. Reply to every enquiry within the hour, offer a specific tour time in your first reply, and follow up within 24 hours of each tour. Keep your Google Business Profile up to date with current vacancies, real room photos, regular posts and replies to every review, because most families start comparing centres in local search.

If new centres have opened near you, focus your Google Search and Meta ads on what sets you apart, such as educator continuity, your quality rating and what’s included in your fees. Target tight radii around where families live and work. Instability at larger providers means some families are looking for a stable alternative. Calm, specific messaging about your staffing, safety practices and local ownership can win those enquiries. If you run a funded kindergarten program, the Victorian findings give you credible, evidence-based wording for your enrolment pages.

Australian Childcare Occupancy: Weekly Review — 19 to 25 September 2026