Unsafe Childcare Centres to Lose Federal Funding Under New Law

This comes in the wake of over 70 charges laid against a Melbourne childcare worker.

Australian Education Minister Jason Clare speaks during the Universities Australia Conference dinner at Parliament House in Canberra, Australia, on Feb. 22, 2023. AAP Image/Mick Tsikas

Parliament has passed legislation allowing the federal government to cut funding to childcare providers that fail to meet safety and quality standards, following serious abuse allegations at a Melbourne centre.

The Strengthening Regulation of Early Education Bill was introduced on July 23.

“Today, we’ve passed laws to cut funding to childcare centres that aren’t up to scratch, that aren’t meeting the quality and the safety standards that our parents expect and that our children deserve,” Education Minister Jason Clare told Parliament on July 31.

The move follows the arrest of 26-year-old Joshua Dale Brown, who faces more than 70 charges after working at the Creative Garden Early Learning Centre in Point Cook, despite passing a Working With Children check.

Clare said the government was acting on long-standing recommendations from a previous Coalition-led royal commission.

“The biggest weapon the Commonwealth has is the $16 billion in annual childcare funding,” he said, adding the legislation aims not to shut services down, but to lift them to “what parents expect and what our children deserve.”

New Compliance Powers

The new law gives the Department of Education expanded authority to withdraw childcare subsidies from providers that receive a “show cause” notice but fail to rectify breaches within 28 days.

Although existing powers already allow for intervention in cases of serious risk, the Bill strengthens the government’s ability to target ongoing non-compliance and repeat violations.

It also allows for greater transparency by expanding the department’s powers to publish sanctions against centres.

The Bill lays the groundwork for further reforms, including compulsory child safety training, national CCTV requirements, and the development of a federal educator register. Victoria announced a similar register just a day earlier, though how the two systems will interact remains unclear.

Currently, childcare centres are rated under a national system, but there is no clear “fail” grade, and oversight differs from state to state.

Clare said governments would continue working together to improve the system.

‘This Work Will Never End:’ Clare

Clare acknowledged the support of Opposition Leader Sussan Ley, Shadow Minister John O'Donnell, and Assistant Shadow Minister Zoe McKenzie.

“This is the start, not the end,” Clare said. “To be brutally honest, this work will never end.”

Ley said the opposition welcomed the changes and would continue pressing the states to act.

“We still need a national worker register, consistent checks, and personal devices banned in centres,” she said.

“We as the opposition will not take a backwards step in holding the government to account to do just that,” she added.

Greens Call for Structural Reform

The Greens also backed the Bill but warned that piecemeal changes would not fully address systemic issues.

Senator Hodgins-May said many provisions depend too heavily on the discretion of the education department secretary, pointing to inconsistent decision-making and a lack of consultation.

“The Greens remain ready to work with the government on real structural early learning reform when Parliament returns in three weeks,” she said.