Proposed reforms aim to strengthen transparency and consistency in ECEC laws

The Australian Government has proposed legislative changes to the Early Childhood Education and Care (ECEC) framework, with the goal of improving clarity, data transparency, and regulatory consistency. 

Announced on 9 October 2025, the reforms would allow the Department to require providers to share cost‑of‑delivery data, enhance data sharing of publicly available provider information, and make technical amendments to align Child Care Subsidy (CCS) rules. 

Key changes in the proposal

1. Cost reporting by providers

Under the changes, providers may be required to disclose information about how much it costs to deliver ECEC services. The intention is to support the Early Education Service Delivery Prices project and assist evidence‑based policy making. 

2. Enhanced data sharing of provider information

The reforms would allow disclosure and sharing of provider data collected under the Family Assistance Law (FAL), especially where that information is publicly available (e.g. from ASIC, ABN registers). This does not override existing protections for private data about children and families. 

3. Alignment of subsidy decision dates

The proposal seeks to better align the effective dates for CCS eligibility, entitlement, and reconciliation decisions, reducing the risk of mismatches and over/underpayments. 

4. Technical corrections and consistency fixes

Certain minor amendments are included to remove legislative inconsistencies, such as refining previous changes and clarifying terminology, to reduce confusion for providers and families. 

What these changes might mean for the sector

• Greater transparency, higher accountability – Requiring cost data and widening permissible data sharing supports greater sector oversight. This may foster public trust, but also increases scrutiny of provider operations.
• Increased reporting load – Some services may face new administrative requirements. Small or remote providers in particular may need support to build capacity to comply.
• Improved subsidy management – Aligning CCS decision rules may reduce abrupt adjustments, enabling smoother financial operations for providers and families.
• Clarification and consistency – Fixing inconsistencies and aligning law language helps reduce ambiguity and improves legal certainty for services.

These proposed changes remain subject to parliamentary approval and possible amendment. For full details, including the minister’s speech and legislative text, see the Minister’s Media Centre.