Childcare centre’s agonising decision to close after state axes kindy funding

A new state subsidy scheme for kindergartens, which came into effect on January 1, has been blamed for the snap closure of an island community’s only long-day childcare centre.

Paul McLean locks the doors at the Bay Island Early Learning Centre on Macleay Island for the last time this week after 14 staff were made redundant following news that the state would not be rolling over ongoing funding. Pictures: Contributed

A new state subsidy scheme for kindergartens, which came into effect on January 1, has been blamed for the snap closure of an island community’s only long-day childcare centre.

The popular Bay Island Early Learning and Care Centre on Macleay Island made the shock announcement on Thursday, leaving more than 40 children without an island service.

The agonising decision to close was made after a failed phone meeting about funding with the state government on Wednesday.

Long-time owner Petrae McLean said the business was unable to continue after a state policy change this month, which would have forced the centre to restructure as a not-for-profit entity.

She said despite 13 years of operating, the state refused to roll over vital funding agreements which had been in place in 2023, resulting in her heartbreaking decision to make 14 loyal staff redundant.

The closure announcement triggered an outpouring of anger and tears and triggered a high-level state Education Department meeting about the issue on Friday afternoon.

Former staff said they were concerned for the future of island families after the closure, which took effect immediately on Thursday.

“We have been informed that the promised 2024 funding for our service has been declined,” Ms McLean said.

Bay Island Early Learning Centre owner and operator Petrae McLean made the agonising decision to shut her centre after the state government refused to roll over ongoing funding unless the centre restructured as a not-for-profit. Pictures: Contributed

“As a result, the supply of Early Learning and care places is no longer sustainable, signalling the necessity to close.

“If we had remained open, we could not receive any state subsidies for operating before 9am and after 3pm, which is when there is the highest demand from working parents.

“We have a six-figure mortgage on this building and there is no way that we could survive operating under a state-driven, not-for-profit arrangement.

“Having the state government open a free day kindergarten at Russell Island and then plan to open another free kindy opposite me is detrimental and I cannot compete.

“This is an essential service and the closure will have devastating economic, social, child health, development, safety, and education impacts.

“It will not only affect the children but it also impacts staff and the many disadvantaged families living on the islands.”

The closure will leave Macleay, Russell, Lamb and Karragarra islands without a full long-daycare centre, operating before 9am and after 3pm and all school holidays.

Macleay Island in Moreton Bay is classified by the federal government as ‘inner remote’ while nearby Russell Island is classified as ‘outer remote’. Picture: Goodle Earth

Ms McLean said the centre was pushed to the brink before the new funding policy came into effect on January 1 as the state had set up a competitive free childcare kindy on Russell Island and planned to open a new state kindergarten opposite her facility this year.

Along with rises in the cost of living, the centre was forced to stare down competition from the free state government “sessional” service which runs for six hours a day for 40 weeks a year out of a classroom at the nearby Russell Island State School.

The Macleay Island centre, which is a 25-minute ferry trip from mainland Redland Bay, has also been battling the federal government to get its “inner remote” status changed to “outer remote” in order to be eligible for an increase in state funding.

The classifications are set by the federal government Accessibility Remoteness Index of Australia.

“If I was 4.5km south, on nearby Russell Island, it would be different and the centre would be classified as outer regional and eligible for a range of other funding,” Ms McLean said.

“We missed out on about $15,000 in annual state government money last year because Macleay Island was classified as ‘remote inner’ not ‘remote outer’.

“This is a state-driven campaign to destroy my service and replace it with the state-delivered kindergarten which only operates for five hours a day.”

Children at the popular Bay Island Early Learning Centre, which closed for the final time this week on Macleay Island. Picture: Contributed

An Education Department spokesman said the decision to close the service was a business decision made by the approved provider.

“As at the close of business on January 11, the Early Childhood Regulatory Authority had not been notified by the approved provider of the early learning centre’s intention to cease operating and will be contacting the approved provider over the coming days,” the state spokesman said.

“The centre is approved to deliver free kindergarten to the children on Macleay Island and has choice regarding the operating model they wish to be funded under, either long daycare or sessional kindergarten.

“Under national law, an approved provider who is voluntarily suspending a service must, at least 14 days before making an application, notify the parents of children enrolled at the education and care service.

“The department will continue to work with the Bay Island Early Learning Centre and the federal government, with community consultation taking place to work through the issue and provide solutions for care.

“The Department understands the importance of parents having access to quality early education and care service on Macleay Island and that an early childhood service is a much-needed support for families.”

The department also said the centre’s request for a service location subsidy for kindergarten students had been granted.

However, to be funded as a sessional kindergarten, the centre needed to meet the eligibility criteria outlined in the Kindergarten Funding Essentials. 

Last year, the state provided the centre with funding support for the delivery of the Bada Bagarra program for child-focused activities for three-year-old children and their families along with funding for the Kindy Uplift program.

Originally published as Childcare centre’s agonising decision to close after state axes kindy funding