A crackdown on NSW childcare centres following a spate of high-profile alleged sex abuse scandals has resulted in many providers stepping up or selling off, new data has revealed.
The NSW Early Learning Commission dramatically ramped up its enforcement action in the last quarter of 2025 following the passage of sweeping new laws targeting dodgy providers.
Between October 1 and December 31, inspectors carried out more than 2200 visits – a 26 per cent increase compared to the same quarter last year.
New data released by the Commission, which was established on December 1, found the number of centres rated as “Working Towards the National Quality Standard”, meaning it has not met the standard, had decreased by five per cent – or, by about 20-25 providers.
At the same time, the number of transfers of service approvals, where a childcare provider transfers their centre to another provider, had also increased by 18 per cent compared to last year.
Evidence, the government said, that stronger child safety regulations were driving unsatisfactory operators out of early learning.

Among those was Jenny’s Kindergarten, which transferred 12 of its 15 early learning centres in February after a history of noncompliance.
A centre found to have been rated as Working Towards standards for 12 years was also shuttered.
The number of centres meeting or above the National Quality Standard increased in the same period to 93 per cent, compared to 91 per cent nationally.
NSW Early Learning Acting Commissioner Daryl Currie the results were a “positive sign” the child safety regulations were having an impact.
“It’s pleasing to see data that indicates a commitment across the sector to continuous improvement and to ensuring safer, high-quality early learning services for all children,” Mr Currie said.
“This quarterly data release is part of the Commission’s ongoing efforts to keep families and the wider community informed about our work and developments across the sector.”
Education Minister Prue Car said there were “encouraging signs” the state government’s reforms were taking effect.
“When our government passed nation-leading laws, we sent a clear message to the sector that improving quality and child safety was the driving force behind our reforms,” she said.
“The sector is hearing that message loud and clear.”
The NSW government passed “nation leading” legislation late last year following a spate of alleged abuse scandals.
Among the changes were a 900 per cent increase in some penalties, greater power to the watchdog to publish findings, and requirements that centres prominently display their compliance and quality history on site.
Centres were warned in November they had one last chance before a blitz on compliance, with fines for not displaying their rating costing up to $154,000.
Since December 1, the Early Learning Commission has issued six on-the-spot fines, totalling $5382.
The majority of those fines were issued due to services failing to notify parents of a child being injured, harmed, ill or involved in an incident.
When services receive an on-the-spot fine they have 21 days to either pay the fine, formally request a review, or choose to take the matter to court.
https://thewest.com.au/lifestyle/nsw-childcare-providers-lift-results-or-bail-on-the-industry-after-crackdown-c-21896881


