Unpaid rent forces another Genius Education centre to close 

Genius Education run early childhood service Symonston Kinder Haven has been forced to close owing ‘thousands in unpaid rent,’ The ABC reports. 

The provider has attracted significant media attention and commentary from across the early childhood education and care (ECEC) sector in recent times in relation to non-payment of educator wages and superannuation, regulatory attention in relation to health and safety, and appeals from employees for union and ministerial support. 

Genius has approximately 30 services across Australia including five in the ACT, where the Symonston centre is located. The last day of operation will be 7 March, with lawyers acting on behalf of the service’s landlord BNR saying $28,038.89 in unpaid rent is outstanding. 

A letter from the lawyers seen by The ABC outlined a “longstanding history of defaults” since Genius began leasing the centre in February 2024.

“You must be aware of your company having repeatedly failed to pay its rent,” the letter said.

“Our client considers that your company lacks the necessary and proper business practices to operate from the premises in a reputable manner.”

In July 2024 the landlord attempted to terminate the lease based on evidence that the provider “had never paid its rent on time.” 

Genius then applied for an injunction in the ACT Supreme Court, which saw the parties instructed to keep the centre open in the interests of families, on the condition that Genius pay the landlord a $125,000 advance from which rent could be drawn – a fund which was exhausted in December 2024. 

ACT Regulatory Authority Childcare Education and Care Assurance (CECA) believes that  landlords at four of the five ACT centres have issues or complaints relating to unpaid rent – something the regulator has no power to take action, telling the ACT it cannot withdraw approval for a provider because of unpaid rent.

BNR Director Brendan Ryan is a former approved provider with more than 30 years of experience in the ECEC sector, who told The ABC that the “centralisation of childcare” under the National Law had “hamstrung regulators.”

“It seems now that the regulators have no power over issues that affect staffing (such as non-payment of wages and superannuation), landlords (such as non-payment of rent and outgoings) and they only have power over “compliance”, but is anybody even clear what that means?” he said.

“When staff aren’t being paid and suppliers and landlords aren’t being paid, the provider is not operating as a business fit to run a childcare centre. Corporates are running childcare centres for a profit not in the interests of children and parents, and the current system allows them to do it.”

Despite approved providers being required by law to notify the Regulatory Authority when they are closing, CECA said no such notification had been received. It is understood that Genius Childcare and Education is now operating under the business name ‘Abacus 49 Pty Ltd’.

To access the ABC coverage of this story please see here.