Valuing a Childcare Centre in Hobart and Southern Tasmania

From a purpose-built centre near new housing in Kingston to a long-established centre in North Hobart, the figure starts with what similar centres have sold for and is tested against what the rooms earn over a full year.

A Hobart childcare centre is valued mainly on sales of comparable centres, read per licensed place and as a multiple of maintainable earnings. Because Tasmanian sales are fewer, we test that evidence by capitalising earnings after a salaried centre director is costed in, and adjust for year-round occupancy, the quality rating, staffing and the lease.

What prompts a Hobart centre owner to get a valuation

Most requests follow an approach or a change in ownership. A national group has written to the owner of a Glenorchy centre asking whether it is for sale. Two owners of a centre in Clarence want to separate their interests, or one is buying the other out. A couple who built a centre together in Kingston are separating, and the Hobart registry of the Federal Circuit and Family Court needs a value at a set date.

Lenders and accountants generate the rest. A bank wants a figure before it funds a second centre in the Huon Valley, or the family group that owns the business is restructuring and the ATO will expect market value on the transfer. In a state where many centres stay with one family for years, handing the business to the next generation is also a common reason.

An early valuation is useful well before any sale. Buyers of Tasmanian centres tend to be experienced groups who model every room, so a seller who knows what is holding the price back still has time to fix it: a rating stuck at Working Towards, a lease with only a few years left, or rosters propped up by agency educators.

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How we weigh the evidence for a Tasmanian centre

The Market Approach leads. Childcare centres change hands often enough across Australia for sales evidence to carry more weight than a forecast, and the groups that buy Hobart centres price them that way.

Tasmania produces fewer centre sales in a year than the mainland capitals, so we build the comparable set from Tasmanian sales first and widen it, where needed, to similar regional and outer-suburban centres elsewhere. Each sale is screened for licensed places, occupancy, rating, remaining lease and whether the freehold went with it, then expressed per place and as a multiple of maintainable earnings.

A sale from outside the state is never used as it stands. Daily fees, educator wages and rents differ from one catchment to the next, so a per-place figure from elsewhere is brought back to Hobart conditions before it is compared, and the report shows each of those adjustments.

Earnings test

We capitalise maintainable earnings once a qualified centre director's salary replaces the hours the owner puts in on the floor and in administration. A centre that looks profitable only because a family member works unpaid shows its real margin at this step.

Asset floor

Fit-out, furniture, outdoor play areas and equipment are taken at what they would fetch today. If the owner also holds the building, it is valued as a separate property interest, because investors price a childcare freehold on its rent and tenant, not on trading.

Adjustments that change a Hobart centre's figure

Two valuations of the same centre usually part ways at this step, so our reports set out each adjustment beside the reason for it. In Hobart and southern Tasmanian centres these come up most often:

Childcare across Greater Hobart

The suburb shapes how a buyer reads a centre. Growth areas such as Kingston in Kingborough and parts of Clarence on the eastern shore are where newer purpose-built centres tend to appear beside new housing, often on long leases to property investors. Established suburbs such as Sandy Bay, North Hobart and Moonah have smaller centres on tighter sites, while centres in and near the Hobart CBD serve parents working in government, health and the services around the Royal Hobart Hospital.

Outer areas behave differently again. Centres in the Huon Valley, New Norfolk and the Derwent Valley draw on smaller catchments, so one competitor opening or a few families moving away can shift occupancy quickly. For those centres we look at several years of enrolment history rather than the latest term.

Tasmania adds its own layer. Services are approved and assessed against the National Quality Standard under the national law by the Regulatory Authority within the Department for Education, Children and Young People, with ACECQA overseeing the national framework. Kindergarten in Tasmania is delivered mainly through schools, so older children often attend school kindergarten on some days and the centre on others, and we check how that pattern fills the preschool room across the week.

Licensed places set a ceiling, not a result. A centre approved for 80 places that holds 58, to take an illustrative case, is valued on the 58, with credit for the gap only where the catchment and nearby supply make filling it likely.

The wider numbers point the same way. Tasmania ended 2025 to 2026 with a net 850 more actively trading businesses, a rise of 1.9 per cent to 45,094, and nationally the health care and social assistance division, which includes child care services, grew its business count by 6.7 per cent (Source: ABS, Counts of Australian Businesses, July 2022 to June 2026, released 18 August 2026). More sales evidence helps a seller; in a growth suburb the same trend can also bring a new competitor down the road.

6.7%
rise in the national count of health care and social assistance businesses in 2025 to 2026; child care services are counted in this division
Source: ABS, Counts of Australian Businesses, July 2022 to June 2026, released 18 August 2026
45,094
actively trading Tasmanian businesses at 30 June 2026, after a net increase of 850 over the year
Source: ABS, Counts of Australian Businesses, July 2022 to June 2026, released 18 August 2026
Year-round
occupancy is what a buyer pays for; the service approval only caps how many children a centre may take

What the report sets out, and why it holds under challenge

Each report opens with the purpose, the standard of value, the valuation date and the records relied on, including any gaps in them. It then explains every approach considered, each normalisation adjustment and its reason, and how the results were weighed into a range, all in plain English.

That reasoning is what a second expert tests. In a property settlement in the Hobart registry of the Federal Circuit and Family Court, or a dispute between co-owners in the Supreme Court of Tasmania, the other side will ask why sales were preferred to capitalised earnings and why the centre sits where it does among them.

In the Supreme Court, expert reports are governed by Part 19 of the Supreme Court Rules 2000 and the Expert Witness Code of Conduct attached to the court's Practice Direction No 1 of 2016. Every report we issue follows APESB, APES 225 Valuation Services and carries the signature of a certified valuer who will stand behind it.

One question to put to any valuer

Ask which assumption an opposing expert would attack first, and how it would be answered. A ready reply is a good sign the groundwork has been done.

Choosing the depth of report for a centre

An Indicative valuation suits an owner who has been approached by a group operator and wants a figure of their own before replying. It is for internal decision-making and is not written for third party reliance. A Summary report fits a sale to an unrelated buyer, a co-owner buying in or out, or a lender funding another centre. A Detailed report is the level for a family law property settlement, a dispute between owners, or any matter where another expert will go through the work.

Let the likely reader decide. If the figure may be tested by a court, the ATO, a bank or another valuer, the full reasoning has to be written down.

Indicative

For internal decision-making. Useful for testing an offer, setting an expectation before a negotiation, or deciding whether to go to market. It is not written for third party reliance.

Summary

Sets out the approaches applied, the normalisation adjustments made and the reasoning behind the conclusion. The usual choice for a sale, an ownership change or a finance application.

Detailed

Applies and reconciles all relevant approaches in full. The level required where a court, the ATO, a lender or another expert will review the opinion.

Compare the three report types

Questions Hobart childcare owners ask about value

Mostly by comparison with what similar centres have sold for, in Tasmania first and further afield where local sales are thin. Each sale is read per licensed place and as a multiple of earnings, adjusted for occupancy, rating, lease and catchment, and the result is checked by capitalising earnings after a salaried centre director replaces the working owner.
No. A place in a full Sandy Bay centre with a long lease is a different asset from a place in a half-filled centre beside a new estate in Kingborough. The figure turns on how many places are filled across the year, the daily fee local families pay, the rating, the lease term left and whether the building is included, and the report shows the sales relied on and where your centre sits among them.
Enough to show in the price. Families look at the rating when choosing a centre, so it feeds occupancy, and a buyer costs the work needed to hold or lift it. A Working Towards rating usually means a buyer allows for improvement spending and slower enrolment growth until the Regulatory Authority within the Department for Education, Children and Young People reassesses the service.
Only if we are asked to value it, and then separately. Investors buy childcare freeholds for the rent and the tenant, while operators buy the business for its trading. Where the owner's family trust or SMSF holds the building, the rent in the accounts is reset to market before the business is valued, so the related-party lease does not push the figure up or down.
Certified reports are delivered from seven business days after the centre's records reach us. What usually sets the pace is how quickly the centre can supply three years of accounts, occupancy by room and by week, the service approval and quality rating, the lease and educator rosters.
Only for the part of it that becomes enrolments. In an established inner suburb such as North Hobart or Sandy Bay, where sites for new centres are hard to find, a list that has reliably filled vacancies supports the occupancy figure. A list padded with families registered at several centres, or with names that never accept a place, adds little, and a buyer will ask how often offers were taken up.
It changes how the preschool room fills. Kindergarten in Tasmania is delivered mainly through schools, so many four-year-olds attend school kindergarten on some days and long day care on others. We look at occupancy in that room day by day, how the centre's sessions fit around school kindergarten, and whether any vacancy pattern has lasted long enough to treat as maintainable.
It can. Where housing is growing, new purpose-built centres often open before the families arrive, and a nearby opening can slow enrolments at an existing centre for a year or two. We review approved and planned centres in the catchment, your occupancy since the last opening nearby and your fees against the newer competition before fixing the occupancy to value.

Book a Free Consultation

Talk your situation through with a certified valuer before you commit to anything, at no cost.

Andrew Mackson
Andrew Mackson, CFA, ABV, CBV
Managing Partner · 15+ years
Book a Free Consultation →

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