ECE costs guide

Childcare costs in New Zealand

Childcare costs in NZ vary widely by service type, location, and hours. This guide explains what families typically pay, what the government funds, and how to reduce your out-of-pocket costs.

The big picture

NZ childcare costs are among the highest in the OECD for families who need full-time care. The government offsets this through two main mechanisms:

20 Hours Free ECE: up to 20 funded hours per week for children aged 3–5
Childcare Subsidy: income-tested payments for eligible families needing more than 20 hours, or for children under 3

Families who use both can significantly reduce their net costs, but many families don't know the subsidy exists or don't realise they qualify.

Typical fee ranges by service type

Indicative ranges only. Fees vary by region, provider, age group, and hours.

Childcare centre (full day)

$100–$180 / day

Higher in Auckland and Wellington. Varies by age group; under-2s typically cost more.

Kindergarten (sessional)

$0–$50 / session

Many kindergartens charge minimal or no top-up fees above the 20 Hours ECE funding.

Home-based care

$7–$12 / hour

Costs vary widely by educator and network. Some home-based providers participate in 20 Hours ECE.

Kōhanga Reo

Variable, often low

Most kōhanga reo charge low fees and participate in 20 Hours ECE funding.

Playcentre

Membership fees only

Playcentres are parent-cooperative. Families pay membership rather than per-session fees. 20 Hours ECE applies.

20 Hours Free ECE

Every child aged 3–5 who is a NZ citizen or resident is entitled to 20 hours per weekof government-funded ECE. The funding goes directly to the service; families don't need to apply themselves.

Services that participate cannot charge parents for the funded 20 hours. They can charge for:

Hours attended beyond 20 per week
Food and consumables (meals, nappies, sunscreen)
Uniforms or clothing items
Optional activities or excursions

Not all services participate. Look for the 20 Hrs ECE badge on service profiles in FernHub, or ask the service directly.

Full 20 Hours ECE guide

The Childcare Subsidy

The Childcare Subsidy is a separate government payment available to eligible families. It is income-tested, so the amount you receive depends on your household income, the number of children, and the hours of care needed.

It can be used for children under 5 (or up to age 6 if not yet at school) attending a licensed service. This includes children under 3, who are not covered by the 20 Hours ECE entitlement.

Who can apply

NZ citizens and permanent residents
Some visa holders (check with Work and Income)
Families meeting the income threshold (reviewed periodically)
Families using a licensed ECE service

Apply through Work and Income NZ (workandincome.govt.nz) or call 0800 559 009. Current subsidy rates are published on their website.

Check eligibility at Work and Income →

Practical ways to reduce childcare costs

Choose a service that participates in 20 Hours ECE
Not all services do. Check before enrolling to ensure you receive the funding.
Apply for the Childcare Subsidy early
Many eligible families don't apply. Subsidy payments are not backdated, so apply as soon as your child starts care.
Compare service types
Kindergartens and playcentres often have lower out-of-pocket costs than full-day childcare centres.
Ask about sibling discounts
Some services offer reduced rates for families with more than one child enrolled.
Look at home-based care
Home-based care can be cost-competitive with centres, particularly for younger children.
Ask for a full fee schedule
Understand exactly what is and isn't included in the base fee before signing an enrolment agreement.

Common cost questions

Can a service charge for the 20 funded hours?

No. The 20 Hours ECE funding is paid directly to the service by the government. Services cannot charge parents for the funded hours themselves. However, they can charge for hours beyond 20, food and consumables, uniforms, and optional activities.

What is the Childcare Subsidy and who qualifies?

The Childcare Subsidy is an income-tested government payment for eligible families who need childcare. It is available to NZ citizens, permanent residents, and some visa holders. Work and Income NZ administers it. Visit workandincome.govt.nz or call them to check your eligibility and current subsidy rates.

Does the Childcare Subsidy stack with 20 Hours ECE?

Yes. If your child is eligible for both, the 20 Hours ECE funding applies first. The Childcare Subsidy can then reduce or cover the remaining out-of-pocket cost for additional hours.

Are childcare costs tax deductible in NZ?

Generally no. Childcare costs are not tax deductible for individuals in New Zealand. However, government subsidies and funding (20 Hours ECE, Childcare Subsidy) are designed to reduce the net cost for families.

Why do fees vary so much between services?

Services set their own fees based on staffing costs, location, premises, and the hours and quality of care they offer. Auckland and Wellington tend to have higher fees than smaller centres due to higher operating costs. Always ask for a full fee schedule before enrolling.

How do I find out what a specific service charges?

Fees are not published centrally. Contact the service directly and ask for their current fee schedule, including what is and isn't covered by the 20 Hours ECE funding.

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