Guild Insurance
Guild Early Learning
KKTC

NSW's First ECEC Service Shutdown by the NSW Regulatory Authority

ACA NSW members will recall federal, states and territory overnments' concerns in 2025 about services who were persistently not at least Meeting the National Quality Standards, with envisaged consequences including the withdrawal of Child Care Subsidies.


According to the Sydney Morning Herald, the new NSW Regulatory Authority (ie the NSW Early Learning Commission) has shutdown a Sydney-based early childhood education and care service apparently due to its failure to address "... safety and quality concerns, even where a serious child safety incident has not yet occurred."

Based on published records, this service was approved in 2008 and has since been rated Working Towards the National Quality Standards till December 2025.


ACA NSW has consistently and publicly advocated for all services to be at least achieving a quality rating of Meeting the National Quality Standards (in effect since January 2012). That said, ACA NSW has also overtly and persistently questioned the fit-for-purpose of the National Quality Standards, the Quality Ratings as well as the Assessment and Ratings process.


With respect to this service's 17 years. the NSW Regulatory Authority appears to have only completed four (4) Assessments and Ratings by (ie in November 2012, December 2017, December 2020 and August 2024). Hence, the intervals for Assessments and Ratings are 3-to-5 years. It is unclear how frequently the NSW Regulatory Authority's Authorised Officers visited this service.


It should also be highlighted that the previous and new NSW Regulatory Authority continues to have at its disposal nine (9) existing laws since January 2012 when regulating existing early childhood education and care Approved Providers and Approved Services:


  1. National Law: Section 23(1) – The Regulatory Authority can amend provider approval at any time.

  2. National Law: Section 25(b) – The Regulatory Authority can suspend a service to comply with a condition of the provider approval at any time.

  3. National Law: Section 55(1) – The Regulatory Authority can amend a service approval at any time.

  4. National Law: Section 70(b) and 70(f) – The Regulatory Authority can suspend service approval if the service breaches any condition(s) or failed to comply with a direction, compliance notice or emergency order anywhere across Australia.

  5. National Law: Section 73 – The Regulatory Authority can suspend service approval without show cause.

  6. National Law: Section 77(a) – The Regulatory Authority can cancel service approval if the service constitutes an unacceptable risk to the safety, health or well-being of any child or class of children.

  7. National Law: Section 80(1) – The Regulatory Authority can cancel service approval to the extent that it relates to associated children’s service.

  8. National Law: Section 75 – The Regulatory Authority can suspend service approval to the extent that it relates to associated children’s services.

  9. National Law: Section 70(d) – The Regulatory Authority can suspend service approval for not meeting the National Quality Standards and there have not been any improvements.

It is not known if the previous and current NSW Regulatory Authority used any of these powers (or other equivalents) during the service's 17 years of operation.


It is also worth noting that there was an independent review of the NSW Regulatory Authority called by the NSW Deputy Premier. Of interest is the independent Wheeler Review discovering 66.6% of sampled services rated Exceeding the National Quality Standards or higher were regarded by the NSW Regulatory Authority as High Risk or Very High Risk.


Moreover, we must not ignore the recent catastrophic child safety failures that occurred across Australia in services rated as Meeting, Exceeding or Excellent in terms of the National Quality Standards.


ACA NSW will engage with the NSW Early Learning Commission to seek a full understanding about the Regulatory Authority's assessment, (regulatory and remedial) interventions and conclusion to shutdown this service.


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


PUBLISHED: 11 JANUARY 2026

FAQs