Labor has introduced legislation to strip federal funding from childcare centres that fail to meet safety and quality standards, in response to shocking abuse allegations at a Melbourne centre.
The move comes after 26-year-old Joshua Dale Brown was charged with over 70 offences while working at Creative Garden Early Learning Centre in Point Cook—despite having passed a “Working With Children” check.
Education Minister Jason Clare said the bill, introduced to the House of Representatives on July 23, is a direct response to national anger and long-standing recommendations from a royal commission under the former Coalition government.
“The biggest weapon the Commonwealth has is the $16 billion in annual childcare funding,” he said.
What the Bill Proposes
The new powers, to be embedded in the Childcare Subsidy (CCS) framework, allows the Department of Education to cut funding when a centre receives a “show cause” notice but fails to address compliance breaches within 28 days.While the Department can already act in cases of immediate risk, the new mechanism will extend its authority to investigate and penalise repeat underperformance.
The bill also expands the Commonwealth’s powers to publish information about providers that are sanctioned.
It also lays the foundation for broader reforms including mandatory child safety training, national CCTV requirements, and the creation of a federal educator register to track childcare workers across centres—Victoria announced such a scheme a day earlier, and it’s not clear how the two schemes will align.
Clare said the changes are designed to restore trust in a system that “parents rely on every single day.”
Currently, childcare centres are rated under a quality framework administered by ACECQA, but no “fail” rating exists, and oversight remains patchy across states and territories.
Greens, Coalition Back Bill
The bill is expected to pass easily in the lower house, where Labor holds a commanding majority of 94 seats. It is also unlikely to face resistance in the Senate, with Opposition Leader Sussan Ley backing the government’s action.“I’m pleased with the government’s efforts around childcare,” she told Sky News Australia.
Greens spokesperson for early childhood education, Senator Steph Hodgins-May, backed the bill but urged the government to establish an independent watchdog.
“We won’t stand in the way of this, but we need a watchdog with teeth to keep our kids safe,” she said.







