This article applies to approved providers of a child care.

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

On 31 July 2025, the Federal Parliament passed the Early Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025 (Cth)(the Bill), which introduces significant reforms for approved child care providers. The changes commenced this month on 3 August 2025, following Royal Assent.

These reforms are an important shift in how early education is regulated, with an increased focus on quality, safety, and transparency in approved child care services.

Operationally Significant Changes

The Bill inserts a range of amendments into the A New Tax System (Family Assistance) (Administration) Act 1999 (Cth) (the Act). The most significant changes (from an operational perspective), include:

• new provider and service eligibility rules;
• new quality and safety considerations for approved childcare providers and services; and
• an expansion of the Secretary’s powers to publicise actions taken against providers.

Eligibility Rules for Providers and Services

To keep their approval, child care service providers must meet updated eligibility standards. The Bill introduces new requirements: the Secretary must be satisfied that approving a provider is appropriate, considering strict standards for quality and safety. These new eligibility criteria apply both to providers and the individual child care services they offer.

Quality and Safety Considerations

Approval decisions now rely on several quality and safety benchmarks:

• Whether a provider consistently delivers high-quality education and care
• Ratings and past performance under the National Quality Standard
• Notification history for serious incidents or near misses
• Demonstrated improvement in quality and safety over time

All these factors are specified in a new section of the legislation, ensuring a more rigorous and transparent assessment process for child care providers.

Public Disclosure of Regulatory Actions

The Bill expands the Secretary’s authority to publicise enforcement actions, such as:

• Suspension or cancellation of a provider’s approval
• Conditions imposed on providers, including detailed reasons
• Refusals to approve a service or add a new service, with stated grounds
• Issuance of infringement notices, including the nature of the breach and fines

Enhanced Compliance Powers

New provisions also strengthen the powers of authorised persons to carry out unannounced visits and spot checks, supporting better compliance and oversight within the sector.

Why This Matters

These reforms signal a clear policy priority from the Federal Government: to enhance safeguards in the early education sector, raise service quality, and provide families with greater confidence in their child care providers.

For providers, the changes mean:

• Greater scrutiny of operational history and compliance record.
• Ongoing monitoring of service performance and incident reporting.
• Public exposure of enforcement actions, which may affect reputation and community trust.

Looking Ahead

While most provisions commence on 3 August 2025, further changes under Part 5 of Schedule 1 will take effect from 1 January 2026 (or later, depending on final commencement). Providers should act now to:

• Review current compliance systems.
• Audit quality and safety practices against the National Quality Standard.
• Prepare for possible unannounced visits.
• Ensure clear reporting and record-keeping processes are in place.

The passage of this Bill represents a turning point in early childhood education regulation. Providers who take proactive steps towards compliance and continuous improvement will not only meet the new legal requirements but also strengthen trust with families and communities.

We will continue to provide updates and guidance as the reforms roll out.

Please click here to access the full Bill.