How the new Federal law will work ... and not work

The Early Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025 was tabled in the Federal Parliament on Wednesday, 23 July 2025.

The Bill essentially outlines that if services persistently do not meet the National Quality Standards, and/or address non-compliances, then the Federal Government (or its delegate) may withdraw those services' ability to receive Child Care Subsidies.

This was also publicly clarified on 23 July 2025 that failing services will get a grace period before funding is pulled.

ACA NSW has no doubts about the sincerity and conviction of the Federal Minister for Education, the Hon Jason Clare MP. And ACA NSW supports the Federal Minister's intentions.

Notwithstanding, it would appear that this new federal law will likely address the 8.9% of (1,499) early childhood education and care services nationally (7.4% or 427 services in NSW) that are currently not meeting the National Quality Standards.

Nevertheless, all the recent child abuses that have transfixed the nation have all occurred thus far in services that are rated Meeting the National Quality Standards or higher.

So through the lens of NSW's early childhood education and care sector, with:

• already the record (and unbelievable) breaches for the last five years (and thus potentially the largest database of potential risks) (so large that NSW eclipses the rest of the Australia combined); 

• the NSW Regulatory Authority already having the power (under the National Law's Section 70) to suspend a service for persistent breaches or child safety concerns; and

• the NSW Regulatory Authority has another eight (8) or laws that are already available to use against services,

then why do we still have concerns about child safety?

Unless the Federal Government is to introduce a new national layer of additional Authorised Officers, the Bill suggests that the new power will be delegated and exercised most likely by the existing Authorised Officers of all jurisdictions.

And given NSW's experiences thus far, and with confirmation from the ABC's Four Corners' expose that Approved Providers do not have access to all of its own compliance histories, the threat of (unfair) withdrawal of funding is more than likely to attract Approved Providers to challenge the regulator's decision(s) under administrative law.

While the spotlight unfairly casts a long shadow on the entire tax-paying segment of the early childhood education sector, it is worth remembering that 5 out of the 11 services in Queensland associated with Operation Tenterfield were non-tax paying services. And of particular interest are the following:

• 4 of those 5 services were rated Meeting the National Quality Standards, and the remaining 1 was rated Exceeding the National Quality Standards;

• 3 of those 5 services had their Quality Area 2 - Children's Health and Safety rated as Meeting the National Quality Standards, and remaining 2 were rated Exceeding the National Quality Standards.

For context, in NSW, non-tax paying services tend to represent about 20% of all services.

ACA NSW members and the sector continue to be angry, outraged, sickened, fuming, infuriated, disgusted, blood boiling, retching, seething!

That said, ACA NSW and the sector will of course cooperate with other leaders and governments so as to ensure all children are protected. But what we need are comprehensive, effective and timely solutions, not silver bullets.

For any further information/clarification, members can contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 29 JULY 2025​