Childcare reforms: stronger child safety laws and higher penalties in 2026
With recent investigations identifying serious issues in the early childhood education and care sector, major reforms to its regulation have recently been rolled out between December 2025 and February 2026.
These changes are designed to improve the quality of care being provided, minimise risk and increase public confidence. Key reforms include tripled penalties, new child safety obligations, expanded regulatory powers and increased transparency, which may significantly raise both financial and reputational risks for those operating in the industry.
Penalties will greatly increase under national laws and powers will be expanded, with child safety remaining the paramount consideration for all regulatory decisions. Victoria goes further, with higher penalties for large providers, mandatory reporting of sexual offences and misconduct, and stronger publicity and enforcement powers. Well run services may not need to overhaul daily practices, but governance, HR, contracts, policies and training should be reviewed, and updated as required, to manage the new reforms and risk profile.
Key reforms
A summary of the key reforms introduced in the period December 2025 to February 2026 are set out below.
| National reforms under the Education and Care Services National Law | Victorian reforms under the Early Childhood Legislation Amendment (Child Safety) Act 2025 (Vic) |
|---|---|
Systemic risk powers Overall, regulators have an increased ability to address systemic risk across related providers, through powers to share information, identify and monitor related providers, and respond to misconduct. This is supported by a new, mandatory National Early Childhood Worker Register. | Establishment of Victorian Early Childhood Regulatory Authority (‘VECRA’) Under this new Act, VECRA has been established as the new Victorian regulator and granted express powers to enforce compliance with new and expanded offences. Among other things, VECRA and the relevant Minister can issue directions and guidelines, prohibit unlicensed providers, close services in emergencies, suspend individuals and quality ratings, cancel approvals, and restrict re‑applications for a period. |
Tripled penalties and more infringement offences From 2 January 2026, all maximum penalties under the National Law increased threefold, and more administrative breaches (such as recordkeeping failures and missing quality improvement plans) can be dealt with by infringement notice. This streamlines the enforcement process for regulators as the requirement for certain substantive steps is removed. | Higher penalties for large providers Victorian providers with 25 or more services face much higher maximum penalties (with the top penalties exceeding $1 million per offence) substantially increasing financial exposure for wayward providers. |
Expanded information‑sharing Regulatory authorities can obtain and share more information with recruitment and labour‑hire agencies (as well as among approved providers) about whether a person is or has been subject to a prohibition, suspension, supervision or disciplinary notice, or an enforceable undertaking. Giving false or misleading information to a recruitment agency or an approved education and care service (expanded from just providing information to an approved provider) about a prohibition notice can now be penalised, with a penalty of $20,400. | Mandatory reporting of sexual offences and misconduct occurring outside service Approved providers must notify VECRA of reportable sexual offences and misconduct by staff, students or volunteers, including where the offence or conduct was unrelated to their attendance at the service. Failure to report is an offence, with penalties for each contravention up to $13,500 for individuals and $68,700 in any other case. |
New 'inappropriate conduct' offence and individual directions Inappropriate conduct towards children by an approved provider, nominated supervisor, staff member or volunteer will be an offence, and regulators can impose supervision, suspension or mandatory training directions on individuals. ‘Inappropriate conduct’ is defined broadly to involve consideration of whether the conduct is expected practice in provision of education and care services, the child’s age and stage of development, whether the child is likely to suffer emotional, psychological or physical harm, and the conduct’s purpose. | Insurance prohibition It is an offence for an approved provider to hold an insurance policy that indemnifies against regulatory penalties under the National Quality Framework or the Child Safe Standards, reinforcing that penalties cannot be 'insured away'. |
Working With Children Checks and digital devices Educators and staff members face new penalties of $13,500 if they do not, within 24 hours, notify approved providers that they have become a disqualified person under the Child Protection (Working with Children) Act 2012, become subject to an interim bar, had a WWCC application refused or had a WWCC cancelled. New restrictions apply on the use of personal digital devices to capture, store or transmit images of children being educated or cared for. Approved providers must also now have policies and procedures on safe use of digital technology. | Publicity and transparency VECRA can publish enforcement outcomes and require services to display their quality and compliance history. VECRA decisions generally continue to operate during internal review, so adverse decisions must be managed immediately while any challenge is pursued. Victorian courts and VCAT can order offenders to publicise offences or non‑compliance, increasing reputational consequences. |
Practical compliance tips
To prepare for the new regime, approved providers and services should focus on the following:
Approved providers and boards of management
Review governance and risk frameworks in light of higher penalties, expanded enforcement powers and increased publicity and transparency.
Map current policies (child safety, supervision, digital devices, quality improvement, recordkeeping) against the new requirements and update them, including at group level, to ensure compliance.
Strengthen oversight of WWCC checks, worker screening and the use of recruitment or labour‑hire agencies, ensuring contracts support information‑sharing and cooperation with regulators.
For large Victorian providers, centralise monitoring of systemic risks and compliance issues across services and plan for the higher penalty settings.
Service operators and nominated supervisors
Implement and document mandatory child protection and child safety training, and ensure all staff and volunteers understand their legal obligations and the new 'inappropriate conduct' offences.
Update local procedures on supervision, digital devices, reporting of sexual offences and misconduct, and recordkeeping.
Prepare for emergency closure directions, quality rating suspensions and more inspection activity through clear contingency and communication plans.
Staff, volunteers and students
Ensure WWCC status is current, understand obligations to report changes promptly, and cooperate with any national worker register processes.
Complete required child safety and child protection training and follow updated policies on supervision, devices and professional conduct.
Be aware that individual behaviour is subject to greater scrutiny, with potential for personal enforcement action, including supervision, suspension or mandatory training orders.
Conclusion
These reforms send a clear message that child safety is the central underpinning principle of the early childhood regulatory framework, which is backed by higher penalties, broader offences and greater levels of transparency. Previously compliant, well-managed services may not need to make wholesale changes, but they now operate in a tougher, more visible enforcement environment.
Early planning, updated policies and contracts, strengthened HR and recruitment processes, and a strong, demonstrable child safety culture will be essential to manage risk and maintain the confidence of families. Large and multi jurisdictional providers, particularly those with substantial Victorian operations, may need tailored governance and risk advice to navigate the new regime effectively.
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