Early Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025

High-Level Summary

The Early Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025 amends the A New Tax System (Family Assistance) (Administration) Act 1999 to make quality and safety paramount in approving and maintaining Child Care Subsidy (CCS) providers, expand the Secretary’s power to publicise compliance actions, and strengthen monitoring through unannounced entry, streamlined warrant and auditor powers.

It also mandates that Family Day Care and In-Home Care providers collect CCS gap fees directly via electronic funds transfer or approved payment gateways and creates an exception framework for special circumstances.


Summary

The Bill amends the A New Tax System (Family Assistance) (Administration) Act 1999 to strengthen regulation and oversight of early childhood education and care (ECEC). Key changes include:

  • Quality & Safety Considerations: Inserts new section 194EA and amends sections 194C and 194D to require the Secretary to refuse, suspend or cancel provider or service approval if quality and safety criteria are not met. The new provision lists factors such as National Quality Framework ratings, serious incident notifications, compliance history and improvement over time.
  • Publication Powers: Expands section 199B to allow the Secretary to publish refusals to approve or vary approvals, imposed conditions and details of infringement notices, enhancing transparency for families.
  • Unannounced Entry: Inserts section 219UCA to modify the Regulatory Powers (Standard Provisions) Act 2014, authorising entry without consent—during operating or business hours—only with written Secretary approval and safeguards for In-Home Care premises.
  • Monitoring Warrants & Audit Delegation: Amends section 219UA to allow delegation of monitoring-warrant applications to Executive Level 1+ officers and section 221 to let SES officers appoint independent auditors of large providers.
  • Direct Gap Fee Collection: Alters section 201B to require Family Day Care and In-Home Care providers to collect CCS gap fees directly from families via EFT or approved payment gateways, with limited exceptions by Secretary determination.

The Bill supports 2024–25 Budget CCS reform measures and has nil net financial impact.


Argument For
Normative Bases
  1. Utilitarian Ground Truth
  2. Egalitarianism

Protecting Child Safety and Wellbeing
By making quality and safety central to CCS approval and ongoing accreditation, the Bill ensures children receive consistent, high-standard care. Unannounced visits and delegated warrant powers deter complacency and reduce the risk of serious incidents in early learning settings [Judgment].

Enhancing Transparency and Parental Choice
Expanded publication powers give families clear, timely information on provider compliance, conditions and infringement notices, empowering parents to choose services that best safeguard their children’s development.

Strengthening Financial Integrity
Direct gap-fee collection by providers and streamlined audit powers minimise CCS fraud and administrative errors, protecting public funds and ensuring resources reach genuine educational services.


Argument Against
Normative Bases
  1. Value-Neutral / Epistemic Objection
  2. Legal Principle [ICCPR Article 17]

Excessive Regulatory Burden
The expanded approval criteria, reporting requirements and unannounced entry powers impose significant administrative and compliance costs on providers. Smaller Family Day Care and In-Home Care operators may struggle to meet new obligations, threatening service availability in regional and remote areas [Judgment].

Privacy and Property Rights
Allowing entry without consent and wider public disclosure of minor compliance issues risks arbitrary interference with the privacy and reputation of providers and families, contrary to ICCPR Article 17.

Uncertain Effectiveness
There is limited evidence that additional criminal-style entry powers or mandatory direct fee collection will materially improve child outcomes or reduce serious incidents any more than existing state regulators and sector accreditation processes already achieve.


Date:

2025-07-23

Status:

Passed Both Houses

Sponsor:

Unspecified

Portfolio:

Education

Categories:

Education, Social Support / Welfare, Consumer Protection

Timeline:
23/07/2025
31/07/2025

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