Parents back calls to expand child care subsidy to include flexible care options

Families, advocates, and some politicians are pushing for Australia’s childcare subsidy to cover more than just centre-based care, arguing that parents need greater flexibility to balance work and family life.

The push comes as the federal government focuses on lifting safety and quality standards at existing centres. A new bill, fast-tracked in the first sitting of the 48th parliament, gives authorities stronger powers to strip subsidies from providers who fail to meet compliance requirements.

Education Minister Jason Clare said the intention is not to remove funding but to compel services to improve. The measures follow a series of high-profile abuse cases that have shaken public confidence in early education settings.

While parents and advocates welcome the crackdown on poor-quality services, many say the subsidy system also needs reform to reflect how families use care.

Currently, the Child Care Subsidy (CCS) forecast to cost $16.2 billion in 2025/26 primarily applies to approved centre-based care. Alternative arrangements, such as co-working creches and in-home early education models, remain ineligible, despite increasing demand.

Advocacy group For Parents has launched a petition urging the government to provide equitable support for families using non-traditional care options.

“The way the subsidy currently works means centre-based childcare is the only option many can afford,” said co-founder Cecelia Cobb. “More choice would allow parents to return to work sooner and with greater confidence.”

Services like BubbaDesk and CoWork Creche which combine flexible childcare with co-working spaces are growing in popularity but fall outside subsidy eligibility.

“Traditional daycare doesn’t always fit with people’s needs,” said BubbaDesk founder Lauren Perrett. “When you become a parent, you wonder why close-proximity care hasn’t been built into workplaces, it’s a no-brainer.”

For Illawarra mother Jenna Bush, BubbaDesk provided the solution she needed when she was unable to secure a centre place she felt comfortable with.

“Being close to my baby throughout the day gives me peace of mind,” she said. “But without the subsidy, it’s a big financial stretch.”

Liberal Senator Maria Kovacic has expressed support for the petition, saying expanding the subsidy is not about undermining formal childcare services.

“It would deliver flexibility and begin to recognise the value of informal care and the unpaid labour that holds up our economy,” she told parliament.

For the ECEC sector, the debate highlights a growing need to diversify care models to meet changing workforce patterns. Parents increasingly seek care arrangements that combine proximity, trust, and flexibility needs not always met by traditional long day care.

Advocates argue that expanding subsidy eligibility would:

• Support workforce participation, especially for parents returning to work after parental leave.
• Recognise diverse care needs, particularly for families in rural or high-demand areas with limited centre availability.
• Encourage innovation in early childhood service models beyond standard centre-based offerings.

The government maintains that ensuring quality and safety remains its top priority. Critics caution that expanding subsidy coverage must include robust quality standards to protect children across all care types.

As policymakers weigh reforms, the conversation is shifting from not just how much funding is provided, but how and where it can best support families.

The push to expand the childcare subsidy reflects a broader recognition that early learning and care is not one-size-fits-all. Families say that to truly support children and parents, Australia’s policies must keep pace with evolving needs and flexible care models.

To read the original coverage of this story, as produced by The Telegraph, please see here.