Childcare centres could lose federal funding if they don’t meet safety standards, under a new bill tabled in Parliament on Wednesday.
Federal subsidies currently cover around 70% of their operating costs.
Last month, a Melbourne childcare worker was charged with more than 70 offences, including sexual abuse and producing child abuse material.
In a speech to Parliament, Education Minister Jason Clare said state and federal governments had not done enough to keep childcare centres safe in the past.
Melbourne centres
A 26-year-old childcare worker was arrested in Melbourne on 12 May.
In June, Victoria Police announced he had been charged with 70 offences, including child rape and producing child abuse material.
Health authorities have advised the families of around 2,000 children to test them for infectious diseases.
Police are still identifying centres where Brown worked.
Federal funding
The Government spent $16 billion on childcare subsidies in the 2024/25 financial year.
The cost is expected to grow from 2026, when three days of subsidised childcare will be expanded to any family earning less than $530,000 a year.
The subsidy is paid to the childcare centres, not families. Education Minister Jason Clare said funding is “the big weapon” for the Federal Government to use in its crackdown.
Legislation
The Government has now tabled a bill that would cut off the childcare subsidy to a centre if it doesn’t “provide high quality and safe care”.
If a centre is cut off, then it wouldn’t be able to offer government assistance to families sending their children to the centres.
Federal officers will also be able to undertake “spot checks” on centres to inspect quality and safety standards. The checks would be random and without advanced notice.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
In a speech to Parliament, Clare said the new rules are designed to restore trust with the “more than a million mums and dads” who rely on childcare.
He didn’t specify when he expected the legislation to pass Parliament or come into effect.
Clare flagged further reforms that he will discuss with the states and territories in August, such as introducing a national register of early childcare educators.
Working with children checks (WWCC) will also be discussed. Brown had a valid WWCC at the time of his arrest.
Opposition
The Coalition first received a copy of the bill last night.
“We need to look at this closely,” Opposition Leader Sussan Ley told the ABC on Wednesday morning.
While promising to work “constructively” with the Government on the bill, she said it would not be “rammed through the Parliament”.
Ley also said tighter regulations were needed to properly address “the enormous distress of so many parents” following reports of sexual abuse at childcare centres.
Advocates
Childcare safety advocates have largely welcomed the federal government’s legislation, while pushing for a further crackdown on quality standards.
Parenthood CEO Georgie Dent is calling for “national coordination” across the sector through a dedicated commissioner.
This would include creating standards for hiring staff, conducting background checks, and setting up eligibility conditions for federal funding.
