Rescue Package to Help Vulnerable Families Keep Children in Home-Based Care

Australia’s in-home childcare sector has welcomed an A$11 million federal rescue package after rising costs pushed many families to reduce their care or leave the program altogether. Providers also warned that some operators would receive more generous support than others, while longer-term problems remain unresolved.

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an absolutely vital service

In-home care serves families who cannot use mainstream childcare because they live in remote areas, work nights, or care for children with complex medical needs, serious disabilities or child protection concerns. The sector came close to collapse earlier this year, prompting anger among vulnerable families.

For Jennifer, whose one-year-old daughter Cece has a rare medical condition, the program made it possible to return to work while a qualified educator cared for her daughter at home. Doctors had advised the family to avoid mainstream childcare. “Initially, it was like, ‘My God, what are we going to do?’” Jennifer told ABC News. “In today’s society, my husband and I both need to work and I love my job and I love what I do.” She called the service “game-changing.”

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Initially, it was like, ‘My God, what are we going to do?’

The sector has contracted sharply in recent years because of the higher costs and practical difficulties of delivering early learning in family homes. It was excluded from a 2024 government subsidy scheme that funded a historic 15 percent pay rise for long day care workers, leaving in-home care families to absorb the increase themselves. More than 70 percent of families in the scheme subsequently reduced their hours or withdrew.

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game-changing

Early Childhood Education Minister Jess Walsh described in-home care as “an absolutely vital service.” The package provides A$5 million in Sustainability Support Grants, A$3.4 million to fund the 15 percent pay rise for in-home care employees and A$2.7 million in additional operational grants. Nicole Morgan, president of the Australian Home Childcare Association, called the sustainability grants “monumental” and said she had been close to closing her service in June.

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monumental