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Australia
September 2026

Australia Pre-Primary Education and Childcare Market Report, 2025-2032

2032

The Australia Pre-Primary Education and Childcare Market worth USD 16 billion in 2025 is growing at a CAGR of 7.20% to reach USD 26 billion by 2032. Goodstart Early Learning, G8 Education, Affinity Education Group, Busy Bees Early Learning Australia and Guardian Childcare & Education are the major companies operating in this market.

Report Details

Base Year

2025

Pages

88

Region

Australia

Author

Ken Research

Product Code
KR78-2026

CHAPTER 1 - MARKET SUMMARY

Market Overview

The Australia Pre-Primary Education and Childcare Market combines education, care and workforce-enabling services across children from infancy through school age. In the June quarter of 2025, 1,491,460 children attended a CCS-approved service, while 1,423,900 children with a Customer Reference Number formed the government's core reported cohort. This scale makes family participation and care intensity central commercial demand variables.

Demand and service supply are concentrated along Australia's eastern seaboard. In the June quarter of 2025, New South Wales represented 31.8% of children using approved care, Victoria 25.0% and Queensland 22.9%. The same quarter recorded 15,214 CCS-approved services, including 9,684 centre based day care services, reinforcing the operating importance of metropolitan and high-growth suburban catchments.

Market Value

USD 16 billion

2025

Dominant Region

New South Wales

Dominant Segment

Centre Based Day Care

Total Number of Players

7,220

Future Outlook

The Australia Pre-Primary Education and Childcare Market is projected to expand from USD 16 billion in 2025 to approximately USD 26 billion by 2032, representing a 7.20% forecast CAGR. Growth is expected to be supported by higher subsidy access, fee and wage normalization, centre development in underserved catchments, expanding preschool integration and continued participation by working families. The forecast is more moderate than the 9.21% modeled historical CAGR for 2020-2025, reflecting a larger market base and a shift from post-pandemic recovery toward structurally driven expansion.

Operating indicators support a capacity-led rather than purely price-led outlook. CCS-approved services increased from 13,685 in the June quarter of 2021 to 15,214 in the June quarter of 2025, while the average hourly fee rose from the report-equivalent USD 6.76 to USD 8.71 over the same period. By June 2026, 15,438 services were operating, with centre based day care service numbers up 2.9% year on year. Policy support, workforce retention spending and supply-side investment should sustain service availability, although affordability, workforce availability and compliance remain constraints.

7.20%

Forecast CAGR

USD 26,031 Mn

2030 Projection

Base Year

2025

Historical Period

2020-2025

Forecast Period

2025-2032

Historical CAGR

9.21%

CHAPTER 2 - SCOPE OF REPORT

Scope of the Market

Click to Explore Interactive Mind Map

CHAPTER 3 - Key Stakeholders

Key Target Audience

Key stakeholders who can leverage from this market analysis for investment, strategy, and operational planning.

Investors

CAGR, occupancy, centre economics, workforce risk, returns

Corporates

network scale, fees, utilization, curriculum, service expansion

Government

accessibility, affordability, quality, workforce, regional capacity, safety

Operators

occupancy, staffing, fees, NQS ratings, expansion pipeline

Financial institutions

centre finance, covenants, occupancy stability, operator creditworthiness, capex

What You'll Gain

  • Market sizing and trajectory
  • Policy and compliance mapping
  • Service capacity indicators
  • Segment structure and levers
  • Competitive landscape shortlist
  • CEO-grade risk priorities

80+

Pages of insights

CHAPTER 4 - Market Size & Growth

Market Size, Growth Forecast and Trends

This section evaluates the historical market size, analyzes year-over-year growth dynamics, and presents forecast projections supported by market performance indicators and demand-side drivers.

Historical & Projected Market Size ($ Million)

Year-over-Year Growth Rate (%)

Market Value vs Volume Growth (%)

Historical Market Performance

Market performance across 2020-2025 reflects a COVID-disrupted starting point followed by normalization of care usage, higher fees, expanding subsidies and new capacity. The model records its strongest annual value increases in 2021 and 2022 before moderating. Official CCS service numbers increased from 13,685 in June 2021 to 15,214 in June 2025, while preschool participation reached 350,491 children aged four or five in 2025.

Forecast Market Outlook

The 2025-2032 forecast assumes value growth increasingly separates from enrolment-volume growth as wage support, quality requirements, staff costs and operating complexity affect service pricing. Service-enrolment equivalents are modeled to rise from 2.19 million in 2025 to 2.54 million by 2032, while value expands at 7.20% annually. The 3 Day Guarantee, supply investment and worker retention measures provide identifiable policy support for this trajectory.

CHAPTER 5 - Market Data

Market Breakdown

The market's growth profile reflects a combination of service capacity, child participation and effective fee realization. The table below combines the locked market-value series with comparable CCS operating indicators; 2027-2032 operating KPIs are Ken Research scenario projections rather than published government observations.

Market Breakdown

Historical Data (2020-2024) • Base Data (2025) • Forecast Data (2026-2032)

Year
Market Size (USD Mn)
YoY Growth (%)
Approved CCS Services
CCS Children with CRN (Mn)
Avg Hourly Fee (USD Equivalent)
Period
2020$10,300 Mn+---
$#%
Forecast
2021$12,150 Mn+17.96%13,6851.329
$#%
Forecast
2022$13,700 Mn+12.76%14,1421.357
$#%
Forecast
2023$14,300 Mn+4.38%14,5101.412
$#%
Forecast
2024$15,100 Mn+5.59%14,8351.418
$#%
Forecast
2025$16,000 Mn+5.96%15,2141.424
$#%
Forecast
2026$17,152 Mn+7.20%15,4381.394
$#%
Forecast
2027$18,387 Mn+7.20%15,7001.420
$#%
Forecast
2028$19,711 Mn+7.20%15,9671.450
$#%
Forecast
2029$21,130 Mn+7.20%16,2381.490
$#%
Forecast
2030$22,651 Mn+7.20%16,5141.520
$#%
Forecast
2031$24,282 Mn+7.20%16,7951.560
$#%
Forecast
2032$26,031 Mn+7.20%17,0811.600
$#%
Forecast

Approved CCS Services

15,438 services, June quarter 2026, Australia. Centre based day care represented 64.5% of CCS-approved services and increased 2.9% year on year, showing that new centre supply remains the principal capacity-expansion mechanism.

CCS Children with CRN

1.394 million children, June quarter 2026, Australia. The CRN-based cohort declined 2.1% from the comparable 2025 quarter even as policy access broadened, highlighting that entitlement expansion does not automatically convert into immediate service usage where places or family demand remain constrained.

Average Hourly Fee

USD 9.04 equivalent, June quarter 2026, Australia, translated from the published national fee using the report's constant currency basis. The underlying fee increased 3.8% year on year, while only 56.7% of centre based day care services were at or below the applicable hourly cap.

CHAPTER 6 - Segmentation

Market Segmentation Framework

Comprehensive analysis across key dimensions providing insights into market structure, family demand, service delivery models, funding structures and geographic patterns.

No of Segments

7

Dominant Segment

Service Type

Fastest Growing Segment

Program Type

Service Type

Centre Based Day Care
$%
Preschool / Kindergarten
$%
Outside School Hours Care
$%
Family Day Care
$%
In Home Care
$%

Learner Segment

Infants (0-2 Years)
$%
Toddlers (2-3 Years)
$%
Preschool-Aged Children (3-5 Years)
$%
Primary School-Aged Children (5-12 Years)
$%

Delivery Model

Full-Day Centre-Based Care
$%
Sessional Preschool Delivery
$%
Home-Based Care
$%
School-Site OSHC
$%
Integrated Childcare-Preschool
$%

Program Type

Early Learning and School Readiness
$%
Government-Funded Preschool / Kindergarten
$%
Before and After School Care
$%
Vacation Care
$%
Inclusion and Additional-Needs Support
$%

Institution Type

Private For-Profit Providers
$%
Not-For-Profit Community Providers
$%
Government-Operated Services
$%
School-Operated Services
$%
Employer / Community Partnership Services
$%

Revenue Model

CCS-Subsidised Family Fees
$%
State Preschool Grants
$%
Full-Fee Private Payments
$%
Targeted Inclusion Funding
$%
Employer / Community Contract Funding
$%

Geography

New South Wales
$%
Victoria
$%
Queensland
$%
Western Australia
$%
Other States and Territories
$%

Key Segmentation Takeaways

Comprehensive analysis across all extracted segmentation dimensions providing insights into market structure, consumer preferences and distribution patterns.

Service Type

Service type remains the most important revenue-allocation axis because centre based day care, preschool, OSHC, family day care and in-home care have materially different fee structures, staffing ratios, operating hours and subsidy mechanics. Centre based day care is the largest commercial pool, supported by 9,684 CCS-approved services in June 2025 and its central role in integrated preschool delivery.

Program Type

Program type is positioned for the strongest structural change as governments expand subsidised access, preschool participation and targeted inclusion. The 3 Day Guarantee broadens minimum subsidised access, while 97% of children enrolled in preschool in 2025 were enrolled for at least 15 hours per week, strengthening integrated early-learning and school-readiness formats.

CHAPTER 7 - Regional Analysis

Regional Analysis

New South Wales is the largest state market within Australia's pre-primary education and childcare ecosystem, supported by the largest national share of children in approved care and above-average fee levels. Victoria and Queensland form the next two major demand pools, while Western Australia and South Australia remain strategically important for capacity deployment and public infrastructure expansion.

Regional Ranking

New South Wales, 1st

New South Wales Estimated National Market Share (2025)

33.0%

Australia CAGR (2025-2032)

7.20%

Regional Analysis (Current Year)

Regional Analysis Comparison

MetricNew South WalesVictoriaQueenslandWestern AustraliaSouth Australia
Estimated 2025 Market SizeUSD 5.28 BnUSD 4.08 BnUSD 3.44 BnUSD 1.52 BnUSD 1.02 Bn
CAGR (%)7.20%7.20%7.20%7.20%7.20%
Share of CCS Children (%)31.8%25.0%22.9%9.0%6.8%
Centre Based Day Care Hourly Fee (USD Equivalent)USD 9.23USD 9.20USD 8.87USD 9.30USD 8.84

Market Position

New South Wales ranks first in the state comparison, with an estimated USD 5.28 billion market in 2025 and 31.8% of children using CCS-approved care nationally. Its scale, Sydney fee premium and dense provider network create the largest addressable revenue pool.

Growth Advantage

The base model applies the national 7.20% CAGR to major states, with relative performance determined mainly by service openings, participation and fee mix. Queensland's 22.9% share of children using approved care makes it particularly important for incremental capacity planning.

Competitive Strengths

Eastern states benefit from the largest child cohorts and dense centre networks, while federal infrastructure investment is widening opportunity elsewhere. In 2026, announced Building Fund projects included around 400 new places across nine NSW services and more than 140 places from new WA projects.

CHAPTER 8 - INDUSTRY ANALYSIS

Growth Drivers, Challenges & Opportunities

Comprehensive analysis of key factors shaping the Australia Pre-Primary Education and Childcare Market, including growth catalysts, operational challenges and emerging opportunities across care delivery, education programs and family-access segments.

Growth Drivers

Broader Subsidised Access Through the 3 Day Guarantee

  • 1.49 million children attended CCS-approved care (June quarter 2025, Australia), demonstrating a large installed demand base from which increased subsidised entitlement can drive additional sessions and utilization.
  • 35.0% of children aged 0-12 attended CCS-approved care (2025, Australia), leaving substantial participation headroom and making access reform commercially relevant to centre occupancy and new-site economics.
  • 100 subsidised hours per fortnight are available to qualifying families (2026, Australia), supporting higher intensity for households meeting participation, Indigenous-child or additional-support conditions.

Workforce Wage Support and Funding Visibility

  • The scheme supports a 15% wage increase (from December 2025, Australia), helping providers compete for educators while linking public support directly to workforce compensation.
  • 184,600 Child Carers were employed (2025 data basis, Australia), indicating the labor scale required to operate and expand the sector. Workforce availability therefore directly constrains sellable capacity.
  • More than 310,000 people had been entered in the National Early Childhood Worker Register by July 2026 across more than 7,000 providers, giving regulators a broader workforce visibility mechanism as the sector scales.

Capital Investment in Underserved Catchments

  • The fund allocates approximately USD 0.33 billion equivalent for capital grants and a further equivalent amount for government-built, owned and leased services, creating multiple routes for capacity creation.
  • 15,438 CCS-approved services operated in June quarter 2026, and centre based day care sites increased 2.9% year on year, showing that physical network expansion is already occurring.
  • Five Queensland projects announced in 2026 were designed to add 352 places, illustrating how targeted public investment can unlock catchments where private economics alone may not deliver sufficient supply.

Market Challenges

Affordability Pressure and Fee Growth

  • The published national fee equated to approximately USD 8.71 per hour (June quarter 2025, report FX basis), increasing the importance of subsidy effectiveness and family gap-fee management for occupancy.
  • Only 62.6% of centre based day care services were at or below the applicable hourly rate cap (June quarter 2025), indicating exposure to out-of-pocket costs above subsidised benchmarks.
  • The worker retention program imposes a 5.8% fee-growth cap for participating services during the specified 2026-2027 program window, requiring operators to balance wage, occupancy and non-labor cost pressure within policy constraints.

Workforce Availability and Retention

  • 93% of Child Carers are female, resulting in a highly concentrated workforce profile and making flexible employment, career progression and retention central to provider capacity.
  • 10,700 annual employment growth was reported for Child Carers, showing continuing labor demand but also reinforcing recruitment requirements as services expand.
  • More than 310,000 worker records across roughly 18,000 services had entered the new national register by July 2026, increasing compliance administration alongside the benefits of stronger workforce screening.

Quality, Safety and Compliance Intensity

  • 92% of rated services met the National Quality Standard or above in Q4 2025, making high quality increasingly the competitive baseline rather than a differentiator available to only a small group.
  • Quality outcomes varied by format, with 97% of preschools or kindergartens, 91% of long day care and 80% of family day care services meeting or exceeding the standard, creating differing improvement burdens by service type.
  • The National Quality Standard contains 7 quality areas, requiring operators to manage education practice, safety, staffing, physical environments, family partnerships and governance simultaneously.

Market Opportunities

Integrated Preschool Within Centre Based Day Care

  • 51% of four- and five-year-old preschool enrolments were exclusively within centre based day care programs in 2025, supporting monetizable integrated long-day-care and teacher-led preschool models.
  • 91% of four-year-olds were enrolled in a preschool program, making quality, convenience, extended hours and parent experience key competitive levers rather than basic category awareness.
  • 97% of preschool-enrolled children received at least 15 hours per week, supporting recurrent utilization and creating scope for bundled care around funded preschool hours.

Capacity Development in Regional and Outer-Suburban Markets

  • Around 400 additional places are planned across nine NSW projects announced in 2026, creating opportunities for operators, developers, workforce partners and education-service suppliers.
  • More than 140 places are expected from four announced Western Australian projects, demonstrating investment appetite for remote and outer-suburban capacity where supply gaps can support stronger utilization.
  • Up to USD 52 million equivalent was made available through small-scale grant opportunities in 2026, expanding participation opportunities for not-for-profit and First Nations-controlled operators.

OSHC and Flexible Family Care

  • 41.0% of the CRN-based child cohort used OSHC in June quarter 2026, making before-school, after-school and vacation formats strategically significant rather than ancillary.
  • 5,125 OSHC services operated in June quarter 2026, supporting partnership models between specialist operators and schools without the same real-estate configuration required for conventional long day care.
  • The 72-hour minimum subsidised entitlement introduced in 2026 applies across eligible CCS care, supporting more flexible family usage patterns and potential cross-format retention strategies.

CHAPTER 9 - Competitive Landscape

Competitive Landscape Overview

Competition is fragmented across large national networks, specialist OSHC platforms, not-for-profit providers, community operators and thousands of smaller approved providers. Scale supports procurement, workforce systems, curriculum investment and brand visibility, but local occupancy and service quality remain decisive.

Market Share Distribution

Goodstart Early Learning
G8 Education
Affinity Education Group
Busy Bees Early Learning Australia

Top 5 Players

1
Goodstart Early Learning
!$*
2
G8 Education
^&
3
Affinity Education Group
#@
4
Busy Bees Early Learning Australia
$
5
Guardian Childcare & Education
&@$
Combined Share$%

Market Dynamics

Local Players70%
Regional/Int'l30%

8 new entrants in the past 5 years, indicating strong market attractiveness and growth potential.

Company Profiles (Top 10 Players)
Company Name
Market Share
Headquarters
Founding Year
Core Market Focus
Goodstart Early Learning
--2009National not-for-profit early learning network with more than 650 centres and integrated long day care and preschool programs
G8 Education
-Gold Coast, Australia-Large listed centre based early education operator with 395 centres at year-end 2025
Affinity Education Group
--2013National early education and childcare group operating 255 centres as of January 2025
Busy Bees Early Learning Australia
---Multi-state childcare, early learning, preschool and kindergarten network
Guardian Childcare & Education
---Centre based childcare and early learning across Victoria, New South Wales, Queensland, South Australia and the ACT
Only About Children
---Early years education and childcare provider with more than 80 campuses across Sydney, Melbourne and Brisbane
KU Children's Services
--1895Not-for-profit preschool, kindergarten, long day care and inclusion provider with 141 services and programs
Junior Adventures Group
--2009Specialist OSHC operator through OSHClub, Helping Hands Network and Primary OSHCare
Camp Australia
--1987National outside school hours and school-holiday care specialist
TeamKids
--2011Outside school hours care and holiday-program operator partnering with schools and community venues

Cross Comparison Parameters

The report provides detailed cross-comparison of key players across 10 performance parameters to identify competitive strengths and weaknesses.

1

Centre Network Scale

2

Occupancy / Utilisation Rate

3

Fee Revenue Growth

4

Operating Margin

Analysis Covered

Market Share Analysis:

Benchmarks provider scale across fragmented national and state networks

Cross Comparison Matrix:

Compares operating scale, utilization, growth and margin performance metrics

SWOT Analysis:

Assesses provider capabilities, constraints, resilience and expansion opportunities nationally

Pricing Strategy Analysis:

Evaluates fee positioning against subsidy caps and catchment economics

Company Profiles:

Reviews network footprint, format specialization and strategic market presence

CHAPTER 10 - REPORT TOC

Table of Contents

88Pages
34Chapters
10Companies Profiled
7Segmentation Types
Phase 1

Market Assessment Phase

11

Supply-side and competitive intelligence covering market sizing, segmentation, competitive dynamics, regulatory landscape, and future forecasts.

Phase 2

Go-To-Market Strategy Phase

15 chapters

Entry strategy evaluation, execution roadmap, partner recommendations, and profitability outlook.

Phase 3

Survey Phase

8 chapters

Demand-side primary research conducted through structured interviews and online surveys with end users across priority metros and Tier 2/3 cities to capture consumption behavior, unmet needs, and purchase drivers.

Complete Report Coverage

201+ detailed sections covering every aspect of the market

143

Assessment Sections

58

Strategy Sections

CHAPTER 11 - Our Approach

Research Methodology

Desk Research

  • CCS service and participation analysis
  • Preschool enrolment dataset review
  • NQF quality and provider mapping
  • Operator annual report benchmarking

Primary Research

  • Chief operating officer interviews
  • Centre director demand interviews
  • Preschool director program interviews
  • OSHC operations manager interviews

Validation and Triangulation

  • 405 respondent observations triangulated
  • Fee and occupancy cross-checking
  • Service-count reconciliation across datasets
  • Provider-level network sanity checks

CHAPTER 12 - FAQ

FAQs

Still have questions?

Our research team is here to help you find the right solution

Contact Research Team

CHAPTER 13 - Related Research

Explore Related Reports

Expand your market intelligence with complementary research across regions and adjacent markets.

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500+

Market Research Reports

50+

Countries Covered

15+

Industry Verticals

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