For-Profit Early Learning Services Under Fire: Senate Inquiry Reveals Alarming Decline in Standards

Australia’s early childhood education sector is facing a reckoning, as a Senate inquiry uncovers widespread concerns about declining quality and child well-being—particularly in for-profit early learning services.

The Centre for Policy Development (CPD) has sounded the alarm in its submission to the inquiry, revealing that children in some centres are experiencing:

• Hunger and inadequate meals
• Forced sleep and prolonged “down-time”
• Lack of supervision and emotional neglect

These issues are not isolated. They reflect systemic challenges in a sector increasingly dominated by profit-driven operators.

CPD’s analysis shows a dramatic drop in the proportion of services rated as “exceeding” the National Quality Standard:

• 2018: 32.5% of services exceeded standards
• 2023: Only 17.8% met that benchmark

This decline coincides with the rapid expansion of for-profit providers, raising questions about whether commercial priorities are compromising care.

The data paints a clear picture:

• 71.3% of long day care services are now for-profit (up from 59.1% in 2014)
• 93% of new services opened in the past year were for-profit

Despite charging higher fees, many of these services fall short on quality indicators compared to not-for-profit counterparts.

Professor Karen Thorpe’s research, cited in the inquiry, documents troubling practices:

• Children going hungry while educators give away their own food
• Children forced to lie down for over 2.5 hours while staff complete administrative tasks
• Emotional and developmental needs sidelined due to staffing pressures

The inquiry has sparked urgent calls for

• Stronger regulatory oversight
• Transparent reporting and accountability
• Trauma-informed, child-centred practices
• Better support and conditions for educators

Educators, families, and advocates are demanding reform. Many are calling for a shift away from profit-driven models toward community-led, quality-focused care that prioritises children’s well-being.

Reference:
Childcare Standards Drop As More For-Profits Enter Sector