In-Home Childcare Sector on the Brink of Collapse

None of Australia's 23 remaining in-home childcare operators are financially viable, according to a new survey by the Australian Home Childcare Association (AHCA).

The sector's exclusion from a government wage subsidy scheme has placed it at serious risk of collapse, threatening care for some of the country's most vulnerable children.

Key Findings

The AHCA survey of in-home childcare operators reveals a sector in crisis:

• 31% of operators are at imminent risk of closure
• 72% of operators reported families withdrawing from care
• 77% reported educators either reduced hours or left the sector entirely

Background: A Targeted Care Model

In-home care is specifically designed for families in exceptional circumstances, including those:

• Living in remote or regional areas
• Doing shift work outside standard childcare hours
• Under a child protection order
• Managing serious illness

The government funded a 15% wage increase for childcare workers in centre-based care but did not extend the same retention payment to in-home care providers, leaving the sector to operate without critical financial support.

The Cost of Exclusion

Nicole Morgan, AHCA: "Extending the subsidy would cost $6.3 million annually, compared to $3.4 billion spent on centre-based wage subsidies. Why are vulnerable children being excluded?"

The disparity in funding is stark: the in-home sector requires a fraction of the overall childcare budget, yet has been left out of wage support entirely.

Government Response

Early Childhood Education Minister Jess Walsh stated the government has taken steps to improve affordability:

• Increased the subsidy rate to 90% for low-income families
• Is currently working with the sector to reduce costs for families

Liberal Senator Matt O'Sullivan expressed concern and confirmed he will pursue the issue in Senate estimates, highlighting specific safety risks for children under protection orders who rely on in-home care arrangements.

Human Cost: Families at Risk

"If this sector collapses, children with serious illnesses will face major setbacks." — Ashley Perez

For families like that of Ashley Perez, whose children have leukaemia, in-home care is not a convenience—it is a medical necessity. Centre-based care poses unacceptable infection risks for immunocompromised children.

Without the wage subsidy, the remaining 23 operators may be forced to close, leaving families without any viable childcare option and vulnerable children without the protection they depend on.