Reports of shocking abuse and neglect in our early childhood system mean many Australians are questioning whether they can trust childcare centres.

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In our new report, we look at some of the broader factors that can increase risks in the childcare system.

We show how it is common for daycare centres to change owners or providers. The sector also has high staff turnover and relatively low pay. The result means Australia's early childhood sector is very different to other parts of our education system.

The most recent data from the Australian Taxation Office shows in 2022-23, more than half of jobs in childcare services (52.4 per cent) lasted less than one year. This was more than double the rate in primary and secondary education, at 24.5 per cent.

This churn is exactly the opposite of what children need to thrive - stable environments and warm and consistent interactions with trusted educators.

Early childhood educators and child carers earn a median of about $34.30 an hour, compared with $42.40 across all occupations and $62 for school teachers.

The organisations that run centres also tend to have considerable turnover. Of the long day care services operating at the end of 2025, about 32 per cent had changed approved provider (the legal entity responsible for a centre) at least once since 2013.

The rate increased to more than 40 per cent among for-profit centres, compared with 11 per cent of not-for-profit centres.

Daycare places have grown rapidly

Overall, the Australian government does not directly fund daycare centres. Instead, it takes a market-based, demand-driven approach.

This sees a means-tested subsidy (the "childcare subsidy") paid to the service provider, who then pass it on to........

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