Childcare safety reforms enter new phase as Minister warns more services could lose funding

Australia's early childhood education and care sector has entered a new phase of regulatory enforcement, with Minister for Education Jason Clare signalling that services which fail to meet child safety standards should expect to lose Commonwealth funding.

Australia's early childhood education and care sector has entered a new phase of regulatory enforcement, with Minister for Education Jason Clare signalling that services which fail to meet child safety standards should expect to lose Commonwealth funding.

Speaking on ABC Afternoon Briefing, the Minister confirmed that the Commonwealth had withdrawn Child Care Subsidy (CCS) funding from a Victorian family day care service after repeated failures to rectify serious safety concerns identified by regulators.

The service has been identified as Laugh & Learn Family Day Care Education & Training.

The Victorian family day care service had been on notice since August 2025 and was given almost 12 months to address compliance issues before funding was withdrawn.

According to the Minister, inspections identified multiple hazards including hazardous chemicals such as bleach, paint and rodent bait accessible to children; a chest freezer without a child safety lock; obstructed emergency exits; and other significant environmental safety risks.

Mr Clare said the decision demonstrates that Commonwealth funding will now be used as a regulatory mechanism where services repeatedly fail to provide a safe environment for children.

"Child care centres can't operate without government funding," he said, noting that Commonwealth funding accounts for around 70 per cent of a typical service's revenue.

The Minister confirmed the Victorian service is not an isolated case.

Nationally, 115 services have been placed on notice, approximately 46 to 47 services have improved sufficiently to retain funding, seven services have voluntarily surrendered their approval, and a number of services continue to work through compliance timeframes and remain at risk of losing funding if improvements are not made.

The message was clear: where providers fail to meet required standards within the agreed timeframe, Commonwealth funding may be withdrawn.

While recent public attention has centred on alleged child abuse cases within the sector, Mr Clare said the Government's reform agenda extends well beyond criminal offending.

Where regulators identify immediate risks to children, existing legislation already allows decisive action. The current reforms are designed to strengthen everyday safety by ensuring providers consistently meet their obligations under the National Quality Framework.

Measures already being implemented include mandatory child safety training for the workforce, with approximately 99 per cent of educators completing the training within three months; a ban on personal mobile phones within services; development of a national educator register; increased regulatory oversight; and trials of CCTV technology in selected services with support from the Australian Federal Police.

Mr Clare said around 95 per cent of services currently meet the required national standards, but the Government expects that figure to reach 100 per cent.

The Minister acknowledged the impact recent child safety incidents have had on families and on the broader early childhood workforce.

He said the overwhelming majority of educators are committed professionals who are equally distressed by recent events, and that governments have a responsibility to strengthen the systems that support both children and educators.

The interview also covered higher education reform, with Mr Clare describing the Job-ready Graduates program as "unfinished business".

The Government has implemented 36 of the 47 recommendations arising from the Universities Accord, including a 20 per cent reduction in student debt affecting around three million Australians and legislation to expand university participation through a $3.5 billion investment package.

The Minister indicated further reforms to university funding and student contribution arrangements remain under consideration.

The interview reinforces a significant shift in the Commonwealth's approach to regulating early childhood education and care.

Rather than relying solely on state and territory enforcement action, the Australian Government is increasingly linking ongoing access to Child Care Subsidy funding with demonstrated compliance and child safety performance.

For approved providers, nominated supervisors and governing bodies, the message is unequivocal: maintaining child safety is no longer only a regulatory expectation, it is becoming a condition of ongoing Commonwealth funding.

Read the full interview transcript on the Minister for Education’s website.