Services Have 1 Month To Rectify Issues Before Losing Funding

Under a new bill, centres that seriously breach standards will have one month to rectify issues before losing taxpayer-funded subsidies. While framed as a grace period to avoid sudden shutdowns, critics worry that such leniency could prolong children’s exposure to risk.

Education Minister Jason Clare insists that centres should improve—not close—but families have the right to know when restrictions are placed on their child’s service. Without government approval, providers will lose access to subsidies that typically cover 70% of operational costs.

The bill introduces stronger oversight tools, including

• Warrantless entry during operating hours

• Public disclosure of compliance breaches

• Special investigators appointed for large providers

• Immediate shutdown powers for services posing imminent risk

These reforms mark a step toward accountability—but execution matters. The sector is watching closely to see how these powers are exercised, especially when it comes to protecting children without displacing families.

Leading voices in early childhood advocacy stress that policy patches won’t fix systemic cracks.

• Jacqui Emery, Royal Far West: Calls for a National Early Childhood Commission to coordinate safety standards across jurisdictions.

• Georgie Dent, The Parenthood: Demands national alignment in hiring, training, background checks, and body safety protocols.

• Samantha Page, Early Childhood Australia: Supports funding withdrawal but urges clear processes to avoid abrupt care disruptions.

With 10% of services failing minimum standards, and the sector expanding rapidly under Labor’s subsidy reforms, the time for structural safeguarding has never been more critical. The Prime Minister’s assurance that safety and access aren’t “either/or” is welcome—but families, educators, and advocates need transparent mechanisms and trauma-informed action, not just political messaging.

Reference:
Failing Childcare Centres Will Get Grace Period Before Funding Is Pulled