New funding strengthens Australia’s In Home Care system and supports families with complex needs

The Australian Government has highlighted a package of financial and workforce support for Australia’s In Home Care program, recognising its critical role for families unable to access other forms of early childhood education and care.

Minister for Early Childhood Education and Minister for Youth Senator the Hon Dr Jess Walsh said the package includes up to $5 million through the In Home Care Sustainability Support Grant, the extension of the government-funded 15 per cent wage increase to eligible In Home Care educators, and a further $2.7 million for providers through Round 5 of the Community Child Care Fund.

“We know In Home Care is important to the families who use it and who, for a range of reasons, can’t participate in centre-based care,” Minister Walsh said.

“Every child deserves a great start in life, no matter their circumstances.”

In Home Care is a specialised form of approved care delivered by an educator in a child’s family home.

It is intended for families who cannot access other approved forms of care because they:

• work non-standard, irregular or variable hours;
• live in rural or geographically isolated locations; or
• are experiencing complex or challenging circumstances.

These circumstances may include health issues, disability or other needs that make mainstream centre-based care, family day care or outside school hours care unsuitable or unavailable.

For eligible families, In Home Care is not simply a matter of convenience. It can be essential to maintaining parents’ workforce participation, supporting family stability and ensuring children can access consistent education and care.

The model is particularly important for shift workers, emergency service and healthcare personnel, families living in isolated communities, and families whose children require highly individualised care.

The government is providing up to $5 million through the In Home Care Sustainability Support Grant.

The one-off grant is intended to assist existing In Home Care services with operational costs and strengthen their financial viability and sustainability.

In Home Care providers operate differently from centre-based services. They must recruit, approve and support educators working across individual family homes, while managing family eligibility, educator matching, scheduling, monitoring and regulatory responsibilities.

Providers may also support small numbers of families spread across large geographical areas, creating operating costs that cannot always be covered through enrolment-based income alone.

The sustainability funding recognises these structural challenges and is designed to help providers continue delivering this specialised form of care.

Eligible In Home Care educators will also be included in the government-funded 15 per cent wage increase for the early childhood workforce.

The extension recognises the contribution of educators working in family homes and the specialised nature of their role.

In Home Care educators frequently work independently and must adapt their practice to each child’s developmental needs, family circumstances, home environment and daily routine.

They may work outside standard service hours and support families experiencing circumstances that require sensitivity, flexibility and professional judgement.

Improved remuneration may help services attract and retain educators in a part of the sector where recruitment can be particularly challenging.

Workforce stability is also important for children. Continuity allows children and families to build secure, trusting relationships with educators who understand their circumstances and individual needs.

A further $2.7 million will support In Home Care providers through Round 5 of the Community Child Care Fund.

The fund is designed to address barriers to participation in early childhood education and care, particularly for children and families experiencing disadvantage or vulnerability.

Community Child Care Fund grants supplement revenue received through family fees, the Child Care Subsidy and Additional Child Care Subsidy.

This targeted funding is particularly important where demand-based funding does not meet the full cost of delivering care, including in thin markets, geographically dispersed communities or circumstances requiring flexible and individualised service delivery.

Australia’s In Home Care sector has faced ongoing concerns about provider sustainability, workforce shortages and the cost of delivering care across multiple family homes.

If an In Home Care provider withdraws from a region, affected families may have few alternative care options.

The consequences can extend beyond the immediate loss of care. Parents may be unable to maintain their employment, children may lose an established educator and families already managing complex circumstances may face further disruption.

Supporting provider viability is therefore closely connected to children’s continuity of education and care, family wellbeing and workforce participation.

The funding also highlights the importance of maintaining different pathways into early childhood education and care.

Building additional centre-based services remains essential, particularly in childcare deserts, regional communities and rapidly growing areas. However, centre-based expansion will not meet the circumstances of every family.

An accessible ECEC system must be able to respond to differences in geography, employment, disability, health and family circumstances.

For providers, the funding offers additional support to manage operating pressures and strengthen service continuity.

For eligible educators, the wage increase provides greater recognition of their contribution to a small but essential part of Australia’s early childhood system.

For families, the package provides reassurance that the importance of flexible and individualised education and care is being recognised within the government’s broader early childhood reform agenda.