Commonwealth powers only go so far
Coalition speakers said the bill was useful but limited because states and territories remain the main safety and quality regulators for early education services.
This bill became law on Aug 2nd, 2025.
Education & skills
The Department of Education can consider a child care provider's quality, safety and compliance history when deciding whether the provider or one of its services can receive Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval.
The bill was introduced after public concern about child safety in early childhood education and careThe sector covering services such as centre-based day care, family day care, in-home care and outside-school-hours care., including allegations in Victoria, and because official materials said the Commonwealth needed stronger tools to link Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval to provider quality, safety and compliance. The government also used the bill to implement 2024-25 Budget measures on monitoring warrants, large-provider audits and direct gap-fee collection for family day careChild care usually provided by educators in homes. From 1 January 2026, family day care providers must collect gap fees directly or through a nominated payment gateway unless an exception applies. and in-home careCare provided in a child's home. The Act sets an extra consent-related safeguard before authorised officers can enter in-home care premises without consent..
The broader story is a rapid Commonwealth funding response to a child-safety crisis in early education. Earlier child-safety reviews and state regulatory work had already identified gaps; the 2025 allegations increased pressure for faster action, and Parliament passed this bill to make Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval depend more directly on safety, quality and compliance.
The bill attracted broad support, but criticism focused on whether it went far enough. Coalition speakers supported the new Commonwealth subsidy powers while calling for faster state and territory action on working-with-children checks, a national worker register, mobile phone rules and CCTV. Greens speakers supported the bill but argued that subsidy enforcement was not enough without deeper reform of funding, access, workforce conditions and national oversight.
Jason Clare introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 02 Aug 2025
Final passage
Passed without a counted vote
1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.
Passage speed
10 days
From introduction to the latest recorded parliamentary step
Meaning
The Department of Education can consider a child care provider's quality, safety and compliance history when deciding whether the provider or one of its services can receive Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval.
Those quality and safety considerations include National Quality StandardThe national benchmark used to assess education and care services. The Act lets the Department consider previous assessments and ratings when deciding subsidy approval. assessments, serious-incident notifications, serious-incident complaints, current or past safety conditions, non-compliance records and whether services have improved over time.
If the Department is not satisfied about quality and safety, it can refuse new approval, stop a provider adding a service, impose conditions, or suspend or cancel Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval.
The Department can publish more compliance information for parents and the public, including conditions on providers, refusals to approve new services, infringement notices and details of non-compliance with approval conditions.
Authorised Commonwealth officers can enter approved child care premises without consent during operating hours for monitoring, if the Secretary has authorised the entry and the officer announces the authority and shows identification.
For in-home careCare provided in a child's home. The Act sets an extra consent-related safeguard before authorised officers can enter in-home care premises without consent., the Secretary must also be satisfied that consent to enter cannot reasonably be obtained before authorising entry without consent.
From 1 January 2026, family day careChild care usually provided by educators in homes. From 1 January 2026, family day care providers must collect gap fees directly or through a nominated payment gateway unless an exception applies. and in-home careCare provided in a child's home. The Act sets an extra consent-related safeguard before authorised officers can enter in-home care premises without consent. providers must have gap fees paid directly to the provider's account or through the provider's nominated payment gateway, rather than through individual educators, unless an exception applies.
the Secretary is satisfied that it is appropriate for the provider to be approved having regard to the matters mentioned in section 194EA (quality and safety considerations)Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
the provider's record of demonstrating commitment to, and achievement of, high quality education and care; any previous assessment ... serious incidents ... conditions relating to quality or safety ... record of non-complianceEarly Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
empower the Secretary to refuse to approve a provider or a service, and to suspend or cancel an approval, if the Secretary is not satisfied that it is appropriate for the provider to be approved having regard to the provider’s quality, safety and compliance historyEarly Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025 explanatory memorandum
if the information relates to a condition imposed ... the condition or details of the condition ... if the information relates to the issuing of an infringement notice—details of the infringement noticeEarly Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
an authorised person enters premises during ... the operating hours for the service ... the Secretary has authorised the authorised person’s entry ... announces that they are authorised to enter the premises ... shows their identity cardEarly Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
if an in home care service is operated at the premises—the Secretary is satisfied that the consent of the occupier to the entry cannot reasonably be obtainedEarly Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
for sessions of care provided by a family day care service or an in home care service—the payment is made ... directly to the credit of a bank account that is nominated by the provider ... or ... using the payment gateway serviceEarly Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 final Act text
Context
The broader story is a rapid Commonwealth funding response to a child-safety crisis in early education. Earlier child-safety reviews and state regulatory work had already identified gaps; the 2025 allegations increased pressure for faster action, and Parliament passed this bill to make Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. approval depend more directly on safety, quality and compliance.
Child-safety review follows Queensland abuse case
The minister's second-reading speech says education ministers commissioned ACECQA to review child-safety arrangements after Ashley Paul Griffith was arrested and charged in Queensland with multiple child sex offences.
Minister's second-reading speech ↗National Quality FrameworkThe national system of law, standards and regulation for early childhood education and care services. review is published
Senate debate referred to ACECQA's Review of Child Safety Arrangements under the National Quality FrameworkThe national system of law, standards and regulation for early childhood education and care services., and speakers criticised the pace of implementation of its recommendations.
Senate Hansard ↗Budget funds stronger subsidy integrity measures
The explanatory memorandum says the bill supports Budget measures on regulatory powers, independent audits of large providers and direct gap-fee collection.
Explanatory memorandum ↗Four Corners report prompts NSW review
The minister's speech says a Four Corners report led the New South Wales government to commission Chris Wheeler to review the state early childhood regulator.
Minister's second-reading speech ↗Victorian allegations accelerate national action
Government and opposition speakers linked the bill to allegations involving children at Victorian child care centres and said the matter had shaken parent confidence in the sector.
House and Senate Hansard ↗Government introduces subsidy-linked safety powers
The bill was introduced to let the Commonwealth consider quality and safety when approving Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. providers, publish more enforcement information and authorise unannounced monitoring visits.
APH bill page and explanatory memorandum ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal Assent, turning the bill into an Act.
Key criticism
The bill attracted broad support, but criticism focused on whether it went far enough. Coalition speakers supported the new Commonwealth subsidy powers while calling for faster state and territory action on working-with-children checks, a national worker register, mobile phone rules and CCTV. Greens speakers supported the bill but argued that subsidy enforcement was not enough without deeper reform of funding, access, workforce conditions and national oversight.
No recorded speaker in the collected debate opposed passage. The Greens moved a defeated second-reading statement calling for broader universal early education reform and a national commission.
Commonwealth powers only go so far
Coalition speakers said the bill was useful but limited because states and territories remain the main safety and quality regulators for early education services.
Need national worker and check systems
Coalition speakers called for a national approach to working-with-children checks and a national register so providers can see relevant worker histories across services and jurisdictions.
Risk of unclear compliance discretion
Zoe McKenzie said providers needed clearer guidance on matters such as persistent non-compliance, serious incidents and due process under the new subsidy powers.
Subsidy enforcement is not enough
Steph Hodgins-May argued that the bill was a small step and would not solve underfunded regulation, for-profit incentives, access gaps, workforce pressure or affordability barriers.
Avoid regulation that raises costs
Leah Blyth supported the bill but warned that extra bureaucracy could drive up costs or discourage good educators unless reform stayed focused on practical safety outcomes.
Further sources
Votes
The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.
Senate
Moved by Steph Hodgins-May (Australian Greens). Defeated 13 to 27. Support came from Greens, One Nation, and Australia's Voice. Opposition came from Labor, Liberal Party, and minor parties and independents.
The bill continued without the Greens statement being added to the second-reading motion.
These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.
Parliamentary debate
Start here — lead voices
Jason Clare introduced the bill as an urgent safety and quality measure after allegations in Victoria, saying Commonwealth Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. funding should be withheld from providers that do not meet safety, quality or compliance expectations.
Read in Hansard ↗Zoe McKenzie supported the bill but said it was only one part of the response, pressing for clearer compliance rules, faster national coordination, stronger working-with-children checks, a national educator register and a mobile phone ban.
Read in Hansard ↗Tim Ayres moved the second reading in the Senate and incorporated the government's speech, arguing that Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. funding is the Commonwealth's main lever to lift safety and quality across centre-based care, family day careChild care usually provided by educators in homes. From 1 January 2026, family day care providers must collect gap fees directly or through a nominated payment gateway unless an exception applies., in-home careCare provided in a child's home. The Act sets an extra consent-related safeguard before authorised officers can enter in-home care premises without consent. and outside-school-hours care.
Read in Hansard ↗Steph Hodgins-May supported the bill but said it was only a small step, arguing for broader reform through universal, high-quality early education and an independent national commission with regulatory powers.
Read in Hansard ↗All speeches by bloc
4 speakers · 5 contributions · 4 support
Hansard records 2 separate contributions by Jason Clare on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Jason Clare introduced the bill as an urgent safety and quality measure after allegations in Victoria, saying Commonwealth Child Care SubsidyThe main Commonwealth payment that helps families with approved child care fees. This Act links access to that funding more directly to provider quality, safety and compliance. funding should be withheld from providers that do not meet safety, quality or compliance expectations.
“it will give us the power to cut off funding to childcare centres that aren't up to scratch when it comes to safety and to quality”Read this contribution in Hansard ↗
Second reading speech
Jason Clare thanked the opposition for bipartisan cooperation and said the bill would help rebuild confidence, while acknowledging further work was needed on working-with-children checks, an educator register, child-safety training and CCTV.
“This bill's one part of it, but it's an important part of it.”Read this contribution in Hansard ↗
“This power will apply to all forms of early education and care that are eligible for the Child Care Subsidy.”Read the full speech in Hansard ↗
“It's about using the biggest lever we have, the childcare subsidy, to lift standards, not just respond to problems.”Read the full speech in Hansard ↗
“This bill gives the Commonwealth the power to immediately cut off the childcare subsidy for centres falling below the standard”Read the full speech in Hansard ↗
4 speakers · 4 support
“while we welcome its introduction, I must be clear: it cannot be the beginning and end of the government's plan”Read the full speech in Hansard ↗
“while these laws and the proposal we have before us are good and things we endorse and support, they go only so far”Read the full speech in Hansard ↗
“The coalition supports this bill, but real safety, real reform and real support for Australian families will not come from this bill alone.”Read the full speech in Hansard ↗
“this bill goes only so far to shifting the dial when it comes to making childcare centres safer”Read the full speech in Hansard ↗
1 speaker · 1 mixed
“So, yes, we do support this bill, but let's be honest: it is not a silver bullet.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal Assent, turning the bill into an Act.