Federal Government Introduces Stricter Rules for Childcare Centres in Australia

There has been considerable media reporting in recent times regarding the systemic problems in Australian childcare centres – from rampant neglect, physical and sexual abuse of children, to a lack of training, to insufficient staffing and inadequate staff training, and inadequate vetting of prospective staff.

In an attempt to address these and other problems, the Australian government has introduced a suite of laws into parliament which many have welcomed, whilst calling them long overdue.

The proposed laws include the Early Childhood Education and Care (Three Day Guarantee) Bill 2025, as well as amendments to the A New Tax System (Family Assistance) Act 1999, and the A New Tax System (Family Assistance) (Administration) Act 1999 – which seek to impose stricter rules and regulations on childcare centres and make providers more transparent and accountable.

Proposed Childcare Reforms 

One of the most notable aspects of the proposed changes includes reducing funding to childcare centres that do not meet high standards, such as those that fail ‘spot checks’ and do not keep their children safe, and forcing the closure of centres that consistently break the rules.

Education Minister Jason Clare told the media that the changes are sorely needed for the protection of our most vulnerable, and that the Commonwealth, with its substantial funding base of ‘something like $16 billion a year’, is committed to promoting safer environments for children and will indeed be shutting down centres that fail to meet minimum standards. 

The government would be able to use a ‘show cause’ notice, which provides the facility with 28 days to meet the required standards. After this period, the Child Care Subsidy would be cancelled or suspended. 

The new laws will also introduce more stringent Working With Children Checks and create a national childcare worker register to ensure that kids are left in the hands of responsible and safe individuals. 

The laws will also require the installation of CCTV cameras in centres, which it is hoped will act as a deterrent to potential abusers and assist in the investigation of alleged offences. 

Early Childhood Education and Care (Three Day Guarantee) Bill 2025 

The proposed changes to the legislation regarding childcare centres in Australia will directly affect the Early Childhood Education and Care (Three Day Guarantee) Bill 2025, with the latest changes commencing on 1 January 2026.

This Bill modifies the Child Care Subsidy test by:

• Allowing families to access a minimum of 72 hours of subsidised care a fortnight, regardless of their time spent in recognised activities,
• Providing those with 48+ hours of recognised activities per fortnight, 100 hours of subsidised care, and 
• Providing families caring for Aboriginal children access to 100 hours of subsidised care a fortnight, regardless of their activity level. 

The purpose of this Bill is to amend the A New Tax System (Family Assistance) Act 1999 (the FA Act) and the A New Tax System (Family Assistance) (Administration) Act 1999. 

The Child Care Subsidy activity test replaced the Child Care Benefit and Child Care Rebate in 2018, combining the income test (a government-set hourly rate cap for child care services) and the activity test, which determines the number of hours a family can access subsidised care. 

What are the implications?

Overall, the government needs to make changes to the Australian childcare system so that families who need childcare, assistance, and programs can utilise the subsidised care they deserve. State and federal education ministers must meet to discuss the best steps to protect children’s safety, including a national register for workers, mandatory training, CCTV in centres, and other safety measures.