Childcare Safety Crisis: Regulators Crack Down Nationwide

Australian regulators in multiple states have taken enforcement actions against several childcare services following documented safety breaches and compliance failures. These actions include funding cuts, center closures, fines, and criminal proceedings.

Federal Funding Cuts

Laugh & Learn Family Day Care (Victoria)

"This marks the first time the federal government has used its power to cut funding to a childcare service based on safety breaches since new legislation was passed last year."

Laugh & Learn Family Day Care Education & Training, a provider operating nine family day care residences in Melbourne, will lose its Commonwealth Child Care Subsidy eligibility effective July 4.

According to regulatory reports, safety breaches were identified at two of its family daycare residences in Craigieburn. Inspectors found bleach, paint, rat poison, dog feces, and unsecured heavy furniture within children's reach. The Victorian Early Childhood Regulatory Authority (VECRA) conducted unannounced visits to nine residences in March, identifying hazards in two homes.

The provider was warned in April and faced a potential fine of up to $103,200 but failed to rectify the issues within 14 days. The provider lost its funding after failing to provide evidence of rectification.

A spokesperson for Laugh & Learn called the decision devastating, stating they have never had a pattern of serious harm and will seek review.

Expansion of Federal Powers

The federal government expanded its powers to withhold Child Care Subsidy in response to allegations of child abuse in the sector. Education Minister Jason Clare stated that providers must meet standards or face funding cuts. According to Minister Clare, the government has issued notices to 115 centers since reforms were implemented, with 47 fixing problems and seven relinquishing licenses.

In a separate action, nine childcare services in Australia are facing potential cuts to their taxpayer funding for failing to meet federal government standards by a February deadline. Out of more than 60 services that were issued conditions since August, 19 have now met the minimum childcare standards. One center has closed, and another is awaiting assessment. The Department of Education is currently determining next steps for the remaining nine services, which could include suspension or cancellation of Child Care Subsidy approval.

State-Level Closures

Fun2Learn, Rosehill (New South Wales)

"This marks the first instance of the new regulator forcibly closing a center."

A Sydney childcare center, Fun2Learn in Rosehill, has been shut down by the NSW Early Learning Commission. The closure follows a 12-year period during which the center reportedly failed to meet standards, accumulating 41 identified breaches since 2023 alone.

Breaches at Fun2Learn included employing staff without required working with children checks, padlocking fire escapes, and failing to inspect fire extinguishers since 2011.

The NSW Early Learning Commission was established in 2023 as part of state government reforms, granting it powers for unannounced inspections and immediate intervention. Acting Commissioner Daryl Currie stated that the closure serves as a message that action will be taken against providers who consistently endanger children.

Courtney Houssos, the Acting Minister for Education and Early Learning, indicated that while 93 percent of centers meet standards, consistent failures necessitate consequences. She noted that the department and commission had engaged with Fun2Learn over 12 years, including 18 visits, prior to the closure decision. The center's owner could reapply for operation by demonstrating new practices and processes to ensure child safety.

The closure impacted 37 children and their families, who were informed in December. The government is assisting these families in securing alternative care. Since its establishment in late November, the commission has inspected over 550 of the 6,100 early learning services in New South Wales.

Lycee Condorcet International French School (Preschool)

The elite private school's out-of-hours preschool service, catering to 102 children aged three to five, will close on March 6. Since 2024, it has faced seven compliance actions and 42 confirmed breaches of national law. The service has not met national standards since its 2013 establishment, despite three assessments.

The school's principal, Nicholas L'Hotellier, expressed surprise at the decision, disagreeing with the grounds and process, and stated that issues were administrative, with no evidence of physical harm to children.

Great Western Family Daycare (Sydney)

This family day care center had 411 documented breaches since 2018. Inspectors reported unsupervised children, and hazardous items like knives, pesticides, and toxic cleaning fluid left within reach. The NSW regulator canceled its registration, affecting 28 educators and 191 enrolled children, citing "poor overall management and governance."

Fairytales Preschool and Long Day Care Centre (North West Sydney)

Its operations were immediately suspended on February 3. Regulatory concerns included alleged "inappropriate discipline of children and failure to report child protection concerns," as well as insufficient monitoring of sleeping infants.

Criminal Proceedings

Team Kids (Victoria)

VECRA charged the company with 13 offenses related to four alleged incidents.

VECRA initiated criminal proceedings against Team Kids, one of Australia's largest out-of-school hours (OOSH) services with approximately 250 centers. The charges include children exiting services unsupervised and a child being left on a bus.

A Team Kids spokesperson acknowledged the incidents, apologized, and reported implementing corrective actions and enhanced management processes.

Fines for Supervision Lapses (Western Australia)

OSHClub, Samson Primary School

In February last year, a five-year-old neurodivergent child left supervision unnoticed at an OSHClub service at Samson Primary School, near Fremantle. The child walked away from a supervised group on the school oval and remained with children not affiliated with the service for 10 minutes. Another parent subsequently brought the child to the school office, leading to the child's parents being contacted.

OSHClub failed to notify the regulatory authority within the mandated 24-hour timeframe. The State Administrative Tribunal (SAT) ordered OSHClub to pay a total of $35,000 in fines and costs for this breach and for not having a compliant staff record for an agency educator.

Natasha Browne, OSHClub's WA general manager, stated the organization accepted full responsibility, expressed regret, and confirmed the child remained unharmed and on school grounds throughout the incident. OSHClub implemented team retraining, strengthened supervision practices, and revised its staffing policy.

St Joe's The Village OSHC, Albany

In January last year, a nine-year-old boy, identified as T, left St Joe's The Village out-of-school hours care in Albany. The child, who required one-on-one supervision due to a medical condition, unlatched a pool-style gate and walked out unnoticed. Staff became aware of T's absence approximately 15 minutes later during a roll call. The child was located near an adjacent college but initially moved away from searching staff before returning to the center about 30 minutes after leaving.

The Department of Communities Executive Director, Angelo Barbaro, emphasized the importance of adequate supervision for child safety within education and care services.

The SAT found the service, operated by Albany-based childcare provider Harpreet Dhaliwal, failed to provide legally required staffing and supervision. There were three staff members supervising 36 children on site, with an additional staff member in the kitchen, failing to meet minimum child ratio requirements. The service also failed to prepare an adequate medical and risk management plan for T, despite being informed of the child's serious medical condition requiring direct supervision.

Ms. Dhaliwal was fined $8,600 for multiple breaches of the Education and Care Services Act and ordered to pay $2,000 towards the department's legal costs. Following the incident, the service installed three self-closing gates, mandated parent sign-in/out procedures, increased regular headcounts, and implemented a medical risk register for educators. Ms. Dhaliwal acknowledged a "lapse in supervision" due to "operational pressures" but stated these do not excuse the lapse.

New National Safety Requirements

National Worker Register

Failure to provide this information can result in fines up to $34,200.

With the national register now operational, childcare services have four weeks to submit their workforce information. Subsequently, they must update the register within 14 days whenever staff are employed, depart, or other relevant information changes. The federal government has invested $45 million in the register, which has been successfully piloted with over 1,000 services nationally.

Mandatory Safety Training

More than 100,000 staff nationwide have enrolled in new mandatory child safety training. This training, developed by the Australian Centre for Child Protection, is designed to equip staff with skills to detect, prevent, and report abuse. Current workers must complete this training within the next six months, while new staff have 14 days from their employment date. The training is also compulsory for company directors and center leadership.

Ratio Reforms and Supervision

Findings from a rapid assessment of child safety practices by the Australian Children's Education and Care Quality Authority identified issues with how educator-to-child ratios were interpreted and applied. Specifically, "across-the-service" or "under-the-roof" ratios, which count staff for an entire service rather than individual rooms, were being used in non-compliant ways. Following this assessment, state and territory education ministers agreed to remove references to "across the service" from laws and to clearly define "adequate supervision."

National Working with Children Check

State and territory attorneys-general are expected to discuss the implementation of a national working with children check system. A pilot for this national system has been available for jurisdictions to join since December, with the full scheme and further improvements planned for rollout over the next three years.

Industry Perspectives

"Questions regarding why authorities had not utilized existing powers to close substandard centers earlier."

Chiang Lim, CEO of the Australian Childcare Alliance, raised questions regarding why authorities had not utilized existing powers to close substandard centers earlier, noting that national laws allowing such actions have been in place since 2012. He also expressed concerns about the effectiveness of regulators, noting instances where centers with serious issues had previously met or exceeded national standards.

Professor Gabrielle Meagher of Macquarie University noted that large for-profit providers dominate the OOSH sector, raising questions about the balance between profit and safety. She also pointed out inconsistencies in OOSH regulation across Australia, particularly in NSW, where staff are not required to have qualifications and staffing ratios are low (one educator for 15 children), suggesting the system is "under-regulated."

Parents' groups and experts have expressed concern over childcare safety, with some families reportedly withdrawing from care or reducing work hours following safety incidents. They are advocating for a National Early Childhood Commission to standardize safety issues, ensure consistency nationwide, and prevent sudden closures.