How do your daily rates compare?
Find out with the Australian Child Care Benchmark Snapshot – Q4 2018
Average Daily Rates (ADRs) across Australia increased to $103.
Occupancy in Australia held steady at 78% but expected to decrease.
The lowest Average Daily Rates were in Brisbane at $97.
Revenue Per Available Place (RevPAP) was highest in Sydney at $90.
Occupancy was maintained across Australia, but this is changing rapidly as centres shift to session rates.
Competition is expected to continue to increase in the coming year, putting downwards pressure on occupancy and an increasing need to maintain strong cost controls.
This snapshot also covers key highlights from ACECQA’s NQF Q3 2018 Snapshot.
Download the Snapshot to learn more.
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Australian Childcare Benchmark Report 2018
Australia’s leaders in education technology software, Xplor, has produced an industry-first Early Learning Centre (ELC) Indicators report that provides valuable insights and points of comparison for the country’s early education and child care centres.
The ELC Indicators report has been produced by Xplor’s new research department in cooperation with independent research agencies, and will provide useful benchmarks from over 1,107 respondents across the nation in the early education space, and will assist operators in optimising their future business decisions.
“There are currently 15,700 child care centre across Australia, and our ELC Indicators report will offer operators an easy point of comparison as to how a given service is performing against other providers in their region. The ultimate goal of our research is to help improve centre operations, and subsequently educational outcomes for children and families,” said Xplor CEO, Mr Mark Woodland.
Some insights from the report have revealed:
- 37% of childcare operators are still using paper-based records to maintain daily operational and compliance requirements, costing them over $39,736 annually. In contrast, profit margins amongst child care operators who have adopted cloud-based technology (such as Xplor’s newly released Programming and Planning software) are notably 16% higher.
- The average childcare operator generates $1.2 million in revenue, however spends nearly 59% of this income on staff costs. In comparison, operators using cloud-based technology (to track everything from attendance, to rostering and daily learning outcomes) report 15% lower staff costs.
- 1 in 4 childcare operators are not meeting the National Quality Standards (NQS), and these services have 12% lower occupancy rates than those Exceeding. Services Exceeding NQS also saw comparatively saw 10.3% higher average daily rates. Operators using Xplor technology were also more likely to exceed National Quality Standards, when compared with the national average.
“The data emphasises the need for technology providers to support child care operators in making the transition from paper-based systems to technology platforms as easy as possible, in order to help the early education sector.
“We’re pleased to note that operators using Xplor demonstrate 22% lower staff costs when compared with industry averages – saving a remarkable $161,182 each year,” said Mr Woodland.
Click to access the full guide.