Almost $1 Billion Profit for Childcare Industry in 2015: Can We Expect Continuous Growth?
There is no doubt the childcare industry in Australia is a booming business. The sector made almost $1 Billion in profit in 2015, not to mention the huge amount earned by the centre operators.
Amidst the increasing demand for quality early childhood education in the country, can we expect continued growth for the childcare industry? Early Learning Management gathered some facts to give you valuable insights.
A Highly Profitable Venture
According to research analysts, childcare provides excellent investment opportunities to those who want to start a business. The sector continues to attract many investors from across the country. For centre owners, the profitability of the childcare business model is a good reason to invest.
The Demand Keeps Rising
Reports revealed that there were about 5900 long day care centres in Australia in 2010. In 2016, the number swelled to over 6800. This shows how fast the demand for childcare facilities has increased. Analysts project a 5.8 per cent annual growth in the sector for the next five years.
Government Subsidies are Big Contributors
With the increasing demand comes the rising rate for early childhood education programs. Without subsidies from the government, families, particularly lower-income ones, would find it difficult to pay for childcare services.
Currently, eligible families can claim their Child Care Benefit and Child Care Rebate, which reduce the fees they need to pay. This is useful for childcare providers and operators as well because the government pays the subsidies directly to them. That means there is a guaranteed income for the centre.
The government is planning to spend more on childcare support in the coming years to help more families gain access to quality early childhood education and care.
If you are planning to start a childcare business, we have a few reminders for you. Always prioritise the welfare and interests of children under your care. Your primary goals should be providing exceptional service, achieving excellent learning outcomes for children, supporting parents and making sure educators are getting paid properly.
The Early Learning Management team is here to help you build a fruitful and profitable childcare business anywhere in Australia. We have the knowledge, experience, skills and resources necessary to provide the assistance you need.
Call us today and let us talk about your plans, needs and goals.