Tiny NSW town fears only childcare centre could close under new federal funding rules
Tiny NSW town fears only childcare centre could close under new federal funding rules

Guyra, a small town 40km north of Armidale in New South Wales, has just one childcare centre. But that centre is under pressure from new federal legislation that could strip funding from providers that repeatedly fail to meet national standards, even if the failures are unrelated to child safety.

The Guyra preschool and long day care centre is approved to educate 29 children but only has enough staff for 25. There are 45 children on the waiting list. Many families drive to Armidale each day for childcare, a journey that can take up to an hour round trip.

The federal government plans to introduce legislation allowing it to withdraw the childcare subsidy—which makes up about 70% of centre funding—from providers that state regulators identify as repeatedly not meeting national standards. Education minister Jason Clare called this “the biggest stick that the commonwealth has to wield”.

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Experts have welcomed the move. Carolyn Smith of the United Workers Union said it was “pretty shocking” the government lacked this power previously. But rural communities fear the measure could have devastating consequences without understanding their unique challenges, such as workforce shortages.

Guyra’s centre was recently downgraded from “meeting” to “working towards” national quality standards. The main reason, according to a staff member, is an inability to attract an early childhood teacher. “The only reason for that, really, is because we can’t attract an early childhood teacher,” said Aimee, a worker at the centre.

The centre’s situation highlights the dilemma: tougher enforcement may improve safety but risks closing the only childcare option in remote areas, forcing families to travel even further or forgo care entirely.

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