This is the third article in our recent series on the childcare crisis, following our advice for operational changes (Rebuilding Trust: Strengthening Child Safety in Childcare Centres During a Time of Crisis) and governance and board responsibilities (Child Safety and the Board: Boards must lead with care).
Increased capacity to investigate and de-fund
In response to the announcement on July 1 that childcare worker Joshua Brown has been charged with 70 child sex offences, both the Victorian and Commonwealth governments have taken swift and targeted action.
Notwithstanding, the Victorian government has announced a review of the sector and is expected to release its report and findings on 15 August 2025.
Meanwhile the Commonwealth government has announced that it is expediting the laws announced in March this year1 which propose to remove funding from childcare providers who are chronically non-compliant, and Education Minister Jason Clare stating that additional legislation will be introduced in the next sitting period which would allow spot-checks of childcare centres without warrants or police involvement if passed.2
While lowering barriers for childcare centres to be investigated and de-funded is aimed to increase compliance and sector integrity, educators and school communities should be aware and prepared for temporary side-effects, such as limitations on the ability to expand to new campuses whilst ‘working towards compliance’ and the potential for parents to be left without childcare and on new waiting lists at short notice if their child’s centre is de-funded.
Moving forward on universal childcare
One of the criticisms and challenges of the childcare sector is that it is subject to different state and federal regulation and different types of funding, making a complex. One proposed solution is to shift the operation of childcare to state public schools. Where this leaves the (much less criticised) not-for-profit providers, and the for-profit operators, on the matter of funding is unclear.
Notwithstanding, the changes take place within the Albanese Government’s broader initiative to championing universal childcare as the predominant mode of funded childcare. The aims target a wide range of outcomes including decreasing developmental vulnerability of children from low-income families.3 In this context, the importance of resolving these issues to ensure the wellbeing and safety of the sector is especially critical.
The move towards universal childcare is underpinned by a huge investment in increasing the capacity of the sector as well as accessibility.4 Measures include Government investment wage increases for childcare workers and funding of new centres. Additionally, in February this year, Parliament passed the Early Childhood Education and Care (Three Day Guarantee) Act 2025, which commences January 2026 and will remove the requirement for families to spend a certain number of hours undertaking ‘recognised activities’ (including paid and unpaid work or leave, approved course of study, or looking for work) in order to access 72 hours per fortnight of subsidised care (with further hours being made available to those with over 48 hours in recognised activities per fortnight).
Currently, the subsidy for a firstborn is 90% for families with an income up to $85,279, after which it decreases 1% for every $5,000 earned up to $535,279. There are also rate caps, and a lower decreasing scale for second and younger children.5 Under the Three Day Guarantee, the subsidy percentage will continue to rely on the combined family income, hourly rate caps, number of children (and their age) in care.6
We can expect to see increased uptake of childcare services, which will sharpen the spotlight on the ability of regulators to hold workers accountable and prevent harm.
Other issues
More broadly, a sleeper issue could be the sunsetting of key cyber powers of the Australian Federal Police and the Australian Criminal Intelligence Commission at the end of next year. Driven by the need to disrupt and prosecute serious criminal online activity such as the distribution of child abuse material, the Surveillance Legislation Amendment (Identify and Disrupt) Act 2021 (Cth) gave these federal agencies significant powers to collect intelligence and conduct investigations (including by taking over online accounts) into serious criminal online activity.7 These powers have been subject to strong safeguards and will sunset in September 2026 unless renewed by Parliament.
The special powers of the AFP and ACIC are currently under review by the Independent National Security Legislation Monitor8 and whether by this or by other means, the expansion and investment in the growth and reform of the childcare sector could leave it vulnerable, and should be governed with both appropriate regulatory and investigative powers.
Act now
What is clear is that centres should not wait for federal reforms such as a national or state register of workers. They need to act now.
How we can help
At Moores, our Safeguarding and Child Safety teams work alongside organisations to ensure their child safety frameworks are robust, compliant, and reflective of best practice. Our experienced team supports clients to:
- Review and update Child Safety Policies and Codes of Conduct;
- Respond effectively to allegations of child abuse;
- Navigate investigations and compliance obligations; and
- Develop practical, preventative strategies that promote a culture of child safety.
We also provide tailored training for staff, boards, and child safety officers to ensure all individuals understand their role in protecting children.
Contact us
If you would like to discuss how we can support your organisation, our education and safeguarding teams are here to help. Please contact Cecelia Irvine-So or Skye Rose if you would like further support.
View our dedicated page on the Childcare and Early Education Reforms and subscribe to receive updates directly in your inbox.
Disclaimer: This article provides general information only and is not intended to constitute legal advice. You should seek legal advice regarding the application of the law to your organisation.