Childcare safety loophole allows educators who breached regulations to continue working

A loophole in Australia's childcare safety regulations allows educators who have breached safety standards to continue working by switching providers, despite a government crackdown.

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The department's investigation into Laugh & Learn Family Day Care Education & Training (the provider) is complete, with the outcome being the cancellation of the Child Care Subsidy (CCS) approval.

Education Minister Jason Clare announced this week that Laugh & Learn Family Day Care Education & Training had its Commonwealth funding revoked, a first under new safety standards. The provider, which operates over 30 family day care centers, faced the funding cut after serious breaches at two centers in Craigieburn. These breaches included exposing children to bleach and rat poison, and failing to secure a water feature.

Despite the severity of the breaches, the current legislation does not prevent the educators involved from re-registering with a different provider and continuing to receive government funding. It will be up to the new provider to ensure compliance, with the educators likely facing increased scrutiny. Laugh & Learn Family Day Care Education & Training claims all issues have been rectified and that its educators remain operational, but documents indicate the provider failed to fix the safety issues identified by the Victorian Early Childhood Regulatory Authority (VECRA).

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The department's decision relates to the CCS approval of the provider, not individual educators.

The provider is appealing the decision, with the funding cancellation set to take effect on July 4. VECRA has expressed "serious concerns" about the provider, noting a decline in compliance with national law over the past year. While the federal government can cut funding, the power to ban individuals from the sector rests with state regulators.

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VECRA has closely monitored this provider and set clear ex