How to start a Family Day Care business  

For many educators, Family Day Care offers the opportunity to combine a passion for working with children with the flexibility of running a small business from home. It allows educators to create a nurturing learning environment for a small group of children while building meaningful relationships with families in their community. 
 
If you are thinking about becoming a Family Day Care educator, understanding essentials like qualification requirements, government regulations and costs can help you take the first step with confidence. 

What is Family Day Care? 

Family Day Care is a form of early childhood education and care delivered in the home of a qualified educator. Unlike centre-based childcare, children learn in small groups in a familiar, home environment, which allows educators to provide individual attention and responsive care. This smaller setting can create a calm, nurturing environment where children feel safe and supported while they learn through play. 

Family Day Care educators often speak about the benefits of a home-based setting for children. For Educator Stacey Hocking, the decisions to switch came after eight years working in long daycare. She saw firsthand the transformation in her young daughter after she began attending Family Day Care.  

“Seeing the positive change in my daughter was the main reason behind starting my own family day care. The penny just dropped for me. I knew children would be able get quality care,” she says.  

Family Day care educators can also choose to offer flexible hours that can include before and after school care, weekend care or overnight care. 

In this way, Family Day care stands apart from centre based care, however, it still operates under Australia’s National Quality Framework, meaning educators follow nationally regulated standards for safety, education and wellbeing. This ensures children receive high-quality care while learning through play and everyday experiences.  

Family Day care has several key benefits and it’s important to know what they are, so you can spread the word about your own business once you are set up and promoting your business.  

Families often choose this childcare option because it offers:  

  • small group environments
  • flexible hours for working parents
  • consistent relationships between educators and children
  • a calm, home-based setting for learning.

For educators, it can also be a rewarding career that supports work life balance. Many educators also include their own children in their Family Day Care so they don’t miss out on their early years.  

Getting started: qualifications for Family Day Care educators 

If you’re researching how to start a Family Day Care in Victoria, taking that first step can feel overwhelming. A logical starting point is to ensure you meet the national qualification requirements. 

It’s vital for educators to have a sound understanding of child development, educational programming and how to create safe learning environments for young children. It ensures educators have the necessary knowledge and skills needed to support children’s development and safety.  

Family Day Care educators must have: 

  • Certificate III in Early Childhood Education and Care (minimum qualification)
  • current First Aid and CPR certification
  • asthma and anaphylaxis management training
  • a Working With Children Check
  • a National Police Check
  • public liability insurance.

Since July 2023, new Family Day Care educators are required to hold an approved Certificate III qualification or higher before starting work, under the National Quality Framework regulations  

The availability of government subsidies and Free TAFE qualifications in early education and care can help you get started. Find out about the Free TAFE program to explore courses and your eligibility.   

These qualifications are not just about meeting regulations, they equip educators to create environments where children can explore, play and learn at their own pace.  In Family Day Care, there’s a strong focus on spontaneous, child-led play, fostering creativity and curiosity. 

Educator Chris Mouser who has been a Family Day Care educator for 25 years with Windermere values this flexibility.  

“I let children direct their own play activities most of the time. Parents love that as children receive structured learning at school and kinder. Family day care is about letting kids just be kids,” she says. 

Working with a registered provider 

Family Day Care educators operate as small business owners, but they must be registered with an approved Family Day Care service provider. 

Working with an established provider like Windermere ensures you have consistent support and industry expertise. Providers help educators meet regulatory requirements, maintain quality standards and connect with families seeking care. 

Educator Aimee Keays values the collaborative nature of the partnership she has with Windermere and relies on consistent support to keep her Family Day care running smoothly. 

“Having families enrolled through Windermere is an easy process. They handle all the administrative tasks, immunisations and help with risk assessments related to allergies and health conditions,” she says of the ongoing support she receives. 

Supports that Windermere provides educators include:  

  • guidance on preparing your home for care
  • safety assessments of indoor and outdoor spaces
  • help with enrolments and administration
  • professional development opportunities including an annual educator conference
  • ongoing mentoring and support including marketing training and resources
  • 24/7 year-round support
  • work cover (note: this is a legal requirement for providers in Victoria – ensure you check with your scheme that this is included).

Having this structured support in place allows educators to strengthen their focus on creating positive learning experiences for children and building relationships with families. 

Family Day Care requirements and regulations 

As Family Day Care services operate under Australia’s National Quality Framework, there are consistent standards for safety, education and care.  Key regulatory requirements include:  

  • a maximum of seven children at one time, including their own children 12 years and under
  • no more than four children preschool age or younger can be in care at once
  • safety requirements for indoor and outdoor learning environments.

These standards ensure children receive high-quality care and individual attention. Preparing your home environment to ensure it’s welcoming and suitable for children also takes careful consideration.  

 This often involves:

  • creating dedicated play and learning spaces
  • ensuring outdoor areas are secure and safe
  • providing age-appropriate toys and learning materials
  • meeting safety requirements such as fencing, gates and smoke alarms.

Your Family Day Care provider will usually conduct a home assessment and help guide you through any improvements that may be needed. Getting started on your journey can feel daunting, but with a supportive provider to walk alongside, it could become a reality, as many educators have done at Windermere.  

“Anytime I was worried about anything, I’d reach out to Windermere. I could be on the phone multiple times a week and they always gave me the time of day. It’s been a journey, but a really good journey,” adds Stacey on the early days of setting up her Family Day Care. 

Costs involved in setting up 

It may be your greatest joy to work with children and nurture young minds, but Family Day Care is a small business. Like any small business, there are some initial costs involved in setting up. These may include:  

  • investing in early childhood qualifications and training
  • safety checks and clearances
  • first aid certification
  • insurance
  • toys, books and educational materials
  • safety equipment for your home.

To cover the initial cost of setting up, you may be eligible for a Family Day Care start up grants or support programs that help educators purchase equipment or prepare their homes for care. The Family Day Care Capability Trial is one such start up funding program available for new educators in select regions.  

Once you move past the initial hurdles of setting up, you get to be your own boss, set your own hours and run your family day care business from the comfort of your own home.

Income and fees 

Family Day Care educators typically set their own fees, often with guidance from their service provider. Fees can vary depending on location, the hours care is offered and the needs of local families. 

Families who use approved childcare services may also be eligible for the Australian Government’s Child Care Subsidy (CCS), which helps reduce the cost of care and makes services more accessible to families.   

The CCS amount that families can claim depends on the type of childcare service and the fees charged.  There are several factors to understand about CCS. 

  • CCS is applied to whichever is lower: the hourly rate cap set by the government or the educator’s fees
  • The Australian Government does not set fees or strictly enforce hourly rate caps on services.
  • The rate cap serves as a guide and gives providers and families a reference to determine what a ‘high fee’ might be.
  • If you charge above this cap, families pay the difference without subsidy assistance.

Since educators can care for several children at once, Family Day Care can provide a sustainable income while allowing the flexibility of working from home. 

Building a successful Family Day Care

As you now know, running a Family Day Care service is both an early education and care service as well as a small business. Successful educators often focus on building strong relationships with families, creating engaging learning environments and maintaining clear communication with parents. 

If you are considering this career path, it can also help to learn from experienced educators.  Educator Chris shares some of her top tips for running a successful Family Day Care business in this article. 

Windermere Family Day Care also provides networking opportunities so that you can connect with other educators and learn and share experiences. In her 25 years as an educator, Chris cherishes the connections she has built with other educators. 

“Windermere is a great inclusive community service, and it is an absolute privilege to work alongside like-minded Educators who value and care for the children in our community,”  she says. 

With the right qualifications, a safe and welcoming environment, and the support of a trusted provider like Windermere, becoming a Family Day Care educator can be both personally and professionally rewarding. 

Ready to start your family day care journey?  Call our friendly team at 1300 946 337 or learn more about becoming a family day care educator with Windermere here.