The Albanese government is preparing to undertake a major overhaul of Australia’s childcare subsidy model, with Treasurer Jim Chalmers signaling that the current framework may no longer be fit for purpose. The move comes amid growing calls for universal childcare and urgent reforms following a series of high-profile child safety breaches across the sector.

A New South Wales parliamentary inquiry has revealed alarming gaps in the childcare sector’s ability to detect and prevent child abuse, with NSW Police warning that some offenders are deliberately “shopping around” for centres with weak safeguards.