Government allocates $11 million to stabilize Australia's in-home childcare sector
The federal government has unveiled an $11 million rescue package aimed at shoring up the in-home childcare sector, which had been threatened with collapse and left vulnerable families at risk.
Facing the prospect of widespread shutdowns, Australia’s in-home childcare sector received an $11 million federal rescue package comprising sustainability grants, a wage-rise fund, and operational assistance. Minister for Early Childhood Education Jess Walsh described the service as vital after families such as Cece, a child with a rare condition, and her mother Jennifer struggled to find care. The package allocates $5 million for sustainability, $3.4 million to deliver a 15 percent pay rise to employees, and $2.7 million for additional operational grants.
Industry representatives, including Nicole Morgan of the Australian Home Childcare Association, called the grants “monumental” but warned that contractors—who make up roughly 70 percent of providers—are left out of the wage-rise payment, potentially causing inequity and further closures. The sector, now operating at about 35 percent capacity with 1,370 children served, hopes a broader government review will secure its long-term viability.
Why it matters
The funding aims to keep essential childcare services available for families who cannot use mainstream options.
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