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How to save $20,000 on childcare

Cute children playing in the playroom with their arms raised.
(Image: Getty)

A new mobile app is promising Australian parents childcare for just a $100 monthly subscription.

Created by Melbourne father Tim Wise, KidNest plays matchmaker for parents to find each other for mutual child-sitting help.

"KidNest connects like-minded parents, who form “Nests’ in their own homes to look after each other’s children on a rotating cycle," says the app's corporate website.

A bit like a dating site, parents are able to tick and untick their preferences for their babysitter, as well as the attributes and facilities they can offer when returning the favour.

After connecting on the app, parents can meet in real life to check they're comfortable with each other and that the homes are to their satisfaction.

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Then by mutual agreement, a childminding schedule can be worked out.

No money is paid to any of the parents involved, so the services are better described as bartering or quid pro quo.

The only fee involved is a $100 per month subscription for KidNest, which includes insurance and audit tools. Participating parents must also possess a "working with children" certification.

The service has launched a trial program based around St Kilda Primary School in Melbourne. Fairfax Media reports the service could launch in Sydney by March.

With childcare costing from $60 to $180 per day, those who switch completely to KidNest could save $20,000 a year.

Cheap childcare is crucial for the economy

One-in-three parents in Australia can't access childcare, according to the Grattan Institute.

"If just 6 per cent more women returned to the workforce Australia's gross domestic product would be boosted by $26 billion."

Economist Stephen Koukoulas said KidNest is a "great idea" to resolve this problem.

"Most existing childcare solutions are expensive – to the government and parents – which is why they have been slow to be rolled out and are unlikely to be implemented or even progressed for the foreseeable future."

KidNest aims to build 650 Nests nationally by June next year. The startup is currently raising funds for its development into a full-blown service.

The company's board of directors includes names like REA chief economist Nerida Conisbee and former BHP chief information officer Ken Matthews.

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The best minds in business, government, academia and entrepreneurship will come together to examine the most critical issues facing Australia at Yahoo Finance's All Markets Summit. Join us for this groundbreaking event.
The best minds in business, government, academia and entrepreneurship will come together to examine the most critical issues facing Australia at Yahoo Finance's All Markets Summit. Join us for this groundbreaking event.