Full list: ‘Troubled’ Victorian childcare centres failing safety standards

Leading childcare companies which operate hundreds of centres in Victoria are haemorrhaging money as they fail to meet national safety and quality standards. See which centres make the list.

Eight leading childcare companies running hundreds of centres in the state together posted national losses of $200m dollars.

The viability and quality of for-profit childcare services caring for thousands of Victorian children is in question amid multimillion-dollar losses and reports of neglect and abuse.

The Herald Sun can reveal eight leading childcare companies running hundreds of centres in the state together posted national losses of $200m dollars.

These include some of the biggest names in the industry, including Only About Children ($63m loss), Busy Bees ($26m loss), Nest, operating the Nido centres ($18m loss), Guardian ($46m loss) and Story House ($20m loss)

Camp Australia, which runs 195 outside school hours care services in Victoria, also lost $25m nationally in 2023/24.

While concern has focused in recent years on the large profits made by corporate childcare services, now many sector commentators are concerned about huge losses due to rising operating costs, the 15 per cent pay rise for workers and inadequate government subsidies.

The Parenthood chief executive Georgie Dent said it was “abundantly clear that the childcare subsidy model, which relies almost entirely on for-profit providers to deliver early childhood education, is not delivering”.

“A more direct leadership role would allow the Government to have much greater oversight and prevent troubled centres from closing abruptly and leaving families, children and educators stranded,” she said.

It comes as 53 per cent of services are run by for-profit companies but make up 66 per cent of those not meeting national standards.

There are 186 services in Victoria “working towards” meeting standards covering issues such as educational practice, health and safety, staffing arrangements and relationships with children.

Another two services – Maria Montessori Pre-school and Early Learning Centre and Play House family daycare – need significant improvement.

Overall, one in ten for-profit childcare centres are not meeting standards which is 50 per cent higher than other non-profit or community run centres and only 12 per cent are exceeding standards compared to up to 44 per cent of those run by state governments.

There are 186 services in Victoria “working towards” meeting standards covering issues such as educational practice, health and safety.

National Children’s Commissioner Anne Hollonds said putting babies, toddlers and young kids at risk because of regulatory failings was unacceptable.

“We must urgently address any serious gaps in the regulatory scaffolding and child safeguarding framework that allows physical, sexual and emotional abuse of children in early childhood centres to continue unnoticed or unaddressed,” she said.

National early learning provider Genius Childcare has already succumbed to an inability to manage costs, with two of its subsidiaries entering voluntary administration one posting a deficiency of $18.5m.

Its third subsidiary, Abacus 49 Pty Ltd, continues to be a registered company, but staff working at its Taylors Lakes centre remain unpaid with some suspecting it will experience a similar fate to its sister companies.

In addition to huge losses, for-profit providers have been involved in some alarming high-profile incidents in Victoria and interstate.

Only About Children’s Eynesbury centre was under investigation last May after allegations emerged children were scaling fences, cutting off hair with scissors and were getting into fights.

Meanwhile, Nest Early Education Services Pty Ltd pleaded guilty in July last year for legal breaches, including failing to supervise and protect children from harm and hazard, after two toddlers escaped from its Werribee Nido Early School.

The Herald Sun has contacted the childcare companies for comment.