The 4 Corners episode “Betrayal of Trust: Australia’s Childcare Crisis” highlights gaping holes in Commonwealth/state responsibility which bad faith operators drive straight through.
Every child has the right not just to be safe, but to thrive at an early learning service.
Since 2012, Australia has led the world in its National Quality Framework (NQF). The NQF has been proven to measure what matters when it comes to supporting children to develop and learn.
The story of early learning in Australia since the introduction of the NQF has been one of significant quality improvement.
Today, the vast majority of providers deliver quality education and care (more than 90% of services with a rating, and more than 80% of all services, including those without a rating).
What’s more, around 1 in 5 services have been rated as Exceeding our National Quality Framework, delivering higher quality that, evidence shows, makes a difference to achieving child outcomes. These services are operated by both not-for-profit and for-profit providers.
However, the 4 Corners report makes clear that the current funding and regulatory set-up is not doing enough to keep out those providers who are only interested in profits, even when this comes at the expense of children.
CEO of the Front Project Dr Caroline Croser-Barlow states “Governments at all levels are not sending a robust signal to business that if you’re not committed to quality, you shouldn’t enter the sector. Instead, they are sending the message that the early learning is open for business, there are excessive profits to be made, and regulatory risks to be arbitraged.
As shown by 4 Corners, even when some providers consistently fail to meet standards, year after year, the state regulator has continued to allow them to operate, while the Commonwealth has provided a lucrative stream of parent subsidies to underwrite their profits.”
The Front Project and Mandala’s 2024 research Addressing Market Imbalances to Achieve Quality and Affordable ECEC reveals that based on National Quality Standards, for-profit services are less likely to be high quality:
- 15% of for-profits are rated Exceeding or Excellent.
- 28% of not-for-profits are Exceeding or Excellent.
Dr Croser-Barlow states “Quality in early education is not an accident. It results from centre directors and educators making deliberate decisions every day about what the children in their service need to support them to play and thrive.
What 4 Corners showed us is that there are some providers who have no interest in supporting centre directors and educators to do this.
These providers are interested only in maximising their profits, and disturbingly, actually reward centre directors for making the decisions to cut costs at the expense of quality.”
The Addressing Market Imbalances report shows that policy settings are encouraging the proliferation of for-profit providers and disincentivising not-for-profit providers. In 2024:
- 70% of LDC services are run by for-profit services, an increase from 60% in 2013.
- 23% of LDC services are run by not-for-profit providers. This is a decline from 32% in 2013.
- The starkest trend can be seen in ‘gentrified’ local government areas (LGAs) where not-for-profit LDC places declined by 10% between 2021-2024, while for-profits grew by 25%.
Dr Croser-Barlow concludes “This is a question of leadership. We know the kind of providers who are more likely to provide quality, yet our funding settings do nothing to encourage these providers to establish or expand services.
What’s more, in some areas, higher quality not-for-profit providers are being pushed out by aggressively expanding for profit providers.
There are many options available to the Commonwealth and State and Territory governments that would let businesses looking to invest in the sector know that this isn’t a place for maximising profit.
From more assertive regulatory action against poor performers, to making access to funding conditional on a track record of quality performance, to supporting high quality not-for-profit and community managed services to grow.
The Australian Government spent more than $14 billion on childcare last year. It can demand better for those dollars.”
Contact: Rachel Wallbridge, 0402 680 092 or