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Childcare safety crackdown exposes loophole for educators breaching regulations
A childcare provider in Melbourne has been stripped of its federal funding after a number of safety breaches. (ABC News: Morgan Timms)
A loophole in the government’s new childcare safety legislation allows educators who have breached safety standards and lost federal funding to re-register under a different provider.
The first childcare provider to lose funding under the legislation claims all its educators plan to re-register, including those who breached the regulations.
The family child care provider is appealing the decision with the Victorian regulator.
An educator found to have breached safety regulations can continue to operate by switching providers in a loophole exposed by the government's childcare safety crackdown.
Funding pulled from Victorian service over child safety | Evening News Bulletin 30 June 2026
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Education Minister Jason Clare has revealed that a service in Victoria has had its funding cut after failing to meet mandatory child safety obligations.
The obligations were introduced last year following allegations of child sex offences and Mr Clare said the standards have had a significant impact.
"I can tell the house that we've now issued notices against 115 centres; 47 centres have now suddenly fixed the problems they'd refused to fix for more than five years; seven have voluntarily relinquished their licenses. And I can inform the house that today my department has cut funding to a service in Victoria that has been warned and continued not to meet the standard."
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Laugh & Learn: Childcare that left poison within children’s reach could close after funding cut
A Victorian family daycare provider could be forced to close after the federal government used expanded regulatory powers to cut its funding.
Laugh & Learn Family Day Care Education & Training was found to have seriously breached safety guidelines at two of its family daycare residences in Craigieburn, including leaving bleach, paint and rat poison within reach of children.
The provider was issued a warning and threatened with a fine of up to $103,200 in April but failed to rectify the safety concerns.
Federal Education Minister Jason Clare said the provider had been warned but failed to meet expected standards.
“If you don’t meet the standards, then you can have your funding cut,” Clare said. “That wasn’t an idle threat.”
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