Some ECEC Services Are Not Reporting Abuse Because There Is Too Much Money At Stake

Educators face a funding debate as Shelton urges subsidies for parents, highlighting safeguarding, equity, and the value of early learning centres.

Family First’s Lyle Shelton, a conservative political figure and current National Director of the Family First Party, has reignited debate over childcare funding. Shelton is best known for his advocacy on social policy issues and previously led the Australian Christian Lobby. His latest comments argue that subsidies should go directly to parents rather than centres.

Shelton has warned that childcare centres failing to report abuse due to financial pressures cannot be ignored. He cited comments from the commander of the child abuse squad, who revealed that some centres avoid reporting because “there is too much money at stake.” Shelton argued that governments must move beyond routine reviews and take decisive action, stressing that safeguarding children must outweigh financial interests.

These remarks follow NSW Police concerns that some services fail to report abuse due to reputational and financial risks. Shelton contends that families choosing home-based care, whether by parents, relatives, or nannies, should not be financially disadvantaged compared to those using centre-based services.

Policy Context

The current funding model heavily favours centre-based care, with subsidies tied to enrolments. Critics argue this creates inequity for families who prefer home-based arrangements and may inadvertently discourage transparency when safeguarding issues arise. Policymakers are now being asked to consider reforms that balance parental choice with child safety.

• Safeguarding concerns: NSW Police reported 1,856 allegations of abuse in centres between 2020 and 2025, with 70% resulting in no further action.
• Policy imbalance: Current subsidies heavily favour centre-based care, leaving families who opt for home care with limited support.
• Proposed reforms: Calls include banning smart glasses in centres, expanding CCTV, enforcing mandatory reporting, and prosecuting cover-ups.

Educator Voice

For educators, this debate is not just about funding mechanics; it directly impacts professional credibility and the trust families place in the sector. Educators are being reminded that safeguarding practices must remain uncompromised, even when financial pressures exist. At the same time, the possibility of subsidies shifting towards parental choice could reshape enrolments and resource allocation, requiring educators to adapt to new expectations.

• Safeguarding credibility: Educators must demonstrate transparent reporting and compliance with child protection standards.
• Trust and accountability: Media coverage of abuse allegations risks undermining public confidence in the sector.
• Funding equity: A shift towards parental choice could reshape enrolments and resource allocation in centres.
• Professional advocacy: Educators should highlight the developmental and social benefits of regulated early learning environments.

Practical Strategies

In this climate, educators can take proactive steps to strengthen their practice and reassure families. By embedding safeguarding protocols into everyday routines, communicating openly about protective measures, and showcasing the unique developmental value of centre-based care, educators can position themselves as trusted allies in children’s learning journeys.

• Embed safeguarding protocols: Regular staff training and clear reporting pathways.
• Communicate openly with families: Share safeguarding measures such as supervision ratios and CCTV use.
• Showcase educational value: Document how centre-based care supports socialisation, literacy, and developmental milestones.
• Engage in policy dialogue: Participate in consultations to ensure reforms balance parental choice with child safety.
• Strengthen family partnerships: Position centres as allies, offering flexible arrangements and reinforcing trust.

For early childhood educators, the debate over funding is inseparable from safeguarding and professional integrity. While policymakers weigh parental choice against centre-based subsidies, educators remain the frontline advocates for child safety, trust, and developmental outcomes. By reinforcing transparency and demonstrating the irreplaceable value of structured early learning, educators can help ensure that reforms strengthen — rather than weaken — the sector.

Further Reading

NSW Government Invests $281.6 Million To Attract and Retain Educators In ECEC Sector
Funding for Preschool Programs in NSW

Reference

Shelton: Fund Parents, Not Childcare Centers