NQS Ratings Impact

Childcare 2020 Report

Services exceeding the NQS charge 7% higher fees.

The national survey for The Early Years Insights was carried out in August and September 2019. The survey had over 2,100 respondents across Australia, making it the most comprehensive benchmarking study of the early years sector.

Excerpt from the 2020 Child Care Report

Approximately 20% of services failed to meet the National Quality Standard (NQS), and these services performed worse across all Performance Indicators with a large difference to those that were Exceeding the NQS. There was a 20% variance in occupancy (81% vs 67%), and a 7% variance in daily rates ($109 vs $105). Services with Exceeding typically invest 13% more in staff costs.

Services with Exceeding were able to increase their fees by 4%, with the average daily rate increasing from $105 in 2018 to $109 in 2019. The average service also spends $97K more in annual staff costs to achieve Exceeding in the NQS.