Methodology

How Child Care Demand calculates a market

Every headline number in a report comes from a defined catchment, a visible formula, and source evidence with a known vintage. When the evidence is incomplete, the report says so and lowers confidence.

The demand and catchment model is calibrated against a trusted commercial reference catchment and cross-checked against public aggregates. Calibration keeps the model commercially useful, but it does not replace local source evidence or professional planning, valuation, finance, or legal advice.

Current market

Demand from residents and workers

Resident demand starts with children aged 0 to 4 inside the catchment. The model applies the catchment-weighted female labour-force participation rate, then a 61.3% childcare take-up rate. These are two sequential filters. Neither is counted twice.

Resident demand = children aged 0–4 × local female labour-force participation × 61.3%

Worker demand estimates childcare use linked to people working in the catchment. External workers are approximated as 66.3% of catchment workers. The child-to-worker ratio is 16.32% in New South Wales and 16.6% elsewhere until a state-specific calibration is available. A 2.73% worker demand factor is then applied.

Worker demand = external workers × child-to-worker ratio × 2.73%
Total estimated demand = resident demand + worker demand

Resident and worker demand are added. They are not multiplied together. Report inputs and intermediate values remain visible so the result can be checked.

Observed use

CCS capture and open demand

Captured demand uses Department of Education Child Care Subsidy enrolments, currently loaded to 2025 Q4, apportioned from SA3 areas by their overlap with the report catchment. It is an observed enrolment signal, separate from the demand estimate.

Capture rate = captured demand ÷ total estimated demand
Open demand = maximum of 0 and total demand minus captured demand

Capture can exceed 100%. Families cross catchment boundaries, children can attend part time, and the CCS series covers ages 0 to 5 while the core population model uses ages 0 to 4. A value above 100% is shown as a market signal, not clipped into a false ceiling.

Current market

Childcare supply ratios

The commercial ratio uses approved places from services identified as long day care. Outside school hours care and standalone preschool or kindergarten services are excluded because they do not provide equivalent supply for the same family decision.

Commercial ratio = weighted children aged 0–4 ÷ weighted LDC places

Reports also show an inclusive secondary ratio using every nearby service with published approved capacity. This broader figure is context only. It is not the primary long day care feasibility measure. Missing place counts remain unknown rather than being guessed.

Spatial method

Drive-time catchments and population precision

Reports use Mapbox drive-time polygons at 5, 10, and 15 minutes. The selected catchment is saved with the report. Where SA1 population and address evidence are available, population is allocated dasymetrically so uninhabited land does not receive the same weight as residential areas. The model falls back to SA2 overlap where SA1 coverage is incomplete, with a guard against remote-area over-allocation.

The commercial trade area is narrower than the largest reporting ring. It uses the full 5-minute core plus 25% of the incremental 5-to-10-minute band. The same rule is applied to young children and long day care places.

Commercial catchment = 5-minute core + 25% of the incremental 5–10 minute band

Future supply

Pipeline market score

Childcare development applications are included only when they are relevant to future supply in the report catchment. Proposed places are weighted by planning status: pending 0.40, approved 0.75, under construction 0.90, stale 0.20, and needs review 0.25. Evidence confidence, freshness, and likely timing can reduce those weights further.

Weighted future places = proposed places × status × confidence × freshness × timing

The report distinguishes current places, published possible places, and weighted likely future places. A blocked or incomplete planning source is shown as a coverage limitation, not interpreted as a zero pipeline.

Future demand

Child population projections

The standard pipeline view uses a three-year horizon. Where an official state projection for children aged 0 to 4 is loaded, it drives resident-demand growth. Otherwise the report uses the observed child-population trend. Annual child growth is capped between minus 10% and plus 10% to stop sparse or unstable inputs overwhelming the market view. Worker demand is held flat unless a defensible forward workplace series is available.

Future demand = projected resident demand + current worker demand

The report names the projection source, source years, annual rate, and applied rate. A forecast is an assumption-led scenario, not a guarantee of enrolments or centre openings.

Operating capacity

Staffing evidence

Local staffing uses the ABS 2021 Census SA2 occupation-by-qualification extract. Usual residence is the primary local availability view, while place-of-work counts describe competition for workers where that evidence is loaded. Estimated educator requirements use a transparent proxy of one educator for every 5.5 long day care places.

Estimated educators required = LDC places ÷ 5.5

National Workforce Census 2024 and Jobs and Skills Australia NERO SA4 figures are shown as regional or state context only. They do not become a site-level staffing score when local qualification evidence is missing.

Evidence ledger

Sources, vintages, and coverage windows

EvidenceCurrent basisHow it is used
Services and placesStarting Blocks / ACECQA official service dataCurrent centre supply, service type, approved places, fees, and ratings where published
PopulationABS regional population with SA1 residential weighting where availableChildren aged 0 to 4 and catchment allocation
CCS captureAustralian Government Department of Education, loaded to 2025 Q4Observed CCS enrolments apportioned from SA3
NSW projections2024 NSW Common Planning Assumption Projections, November 2024Official SA2 child-population scenarios
Queensland projectionsQueensland Government population projections 2023, medium seriesOfficial SA2 child-population scenarios
Victorian projectionsVictoria in Future 2023, Release 2Official SA2 child-population scenarios
Development pipelineOfficial state, territory, council, and planning-platform recordsReport-safe applications inside the source coverage window
School proximityVictorian Department of Education, School Locations 2025Nearest primary school and primary-school count inside Victorian report catchments
StaffingABS Census 2021, NWC 2024, and JSA NERO SA4Local qualification evidence plus clearly labelled regional context

Planning coverage is recorded by jurisdiction, source, geography, and date window. A report can therefore distinguish a live match, an audited search with no childcare applications, a blocked source, and an area still awaiting enrichment. See the live coverage ledger for current jurisdiction status.