$350? Is that subsidized? That doesn't seem possible.
A good student:teacher ratio for 1-2 year olds is 1:3, for 3 year olds is 1:5 and for 4 year olds is 1:8. Assuming an even mix, that's an overall ratio of 1:4. 350 x 4 x 12 is $17K a year per teacher, and that's only if nothing goes towards rent, supplies and the other costs of running a day care.
It's entirely possible if by daycare the person means a 1:5 or higher teacher:child ratio in a rural part of the country, or possibly just a babysitting service with a zoo of children and very few teachers.
I'm sure it's just Mom's taking kids into their home to make some money on the side. They're making less than minimum wage and aren't accounting for any rent or supplies, but it's better than the nothing they'd get staying home to look after their own kids.
My point doing the math was that a day-care as a "real" business has to charge at least double the OP's $350 a month.
Just to give a good indication of the range of options/prices in the US, a good day care in Seattle proper runs just under $2000/m and has a 1 year long waiting list. We applied for 3 and got into 1. (For an infant, prices go down about $150/m for every year of life).
I'm not sure why it's so expensive. They do seem constantly undersupplied and I expect they pay their staff well.
I found some average prices for Australia [1]. They list "Long day care (child care centre)" at $70 - $185 per day, which is what we found when looking at prices.
Data point: private daycare for 1-3 year olds (4:1 ratio) is about €1700/month in Germany, but in my town it gets subsidized by around €8-900/month. Some counties subsidize down to 0 cost if they want to attract families; publicly run daycares are around €450 for daycare and €220 for kindergarten, but they have stricter closing jours (our private one is open 8-6) and more days off per year (up to 6 weeks).
What causes daycare to be so expensive in Australia? Wages, regulation, not enough supply, something else?