Concerns are mounting over the state of Australia’s childcare sector following alarming reports of sexual abuse within childcare centres. Investigative revelations from the ABC’s Adele Ferguson and her team have uncovered a hidden scale of abuse that has left many Australians shocked. The scale of infiltration by paedophile networks into the country’s AUD 22 billion childcare industry is alarming, sparking renewed calls for accountability and reform.
Professor Deborah Brennan, a prominent social policy researcher, warned federal senators in 2009 about the risks associated with Australia’s childcare system, stating, “We really have entered into a vast national experiment with our children in Australia.” Her earlier critiques have gained renewed significance in light of the recent findings.
The Rise and Fall of ABC Learning Centres
These issues stem from a shift toward privatisation and corporatisation that began in the early 1990s. During this period, ABC Learning Centres emerged as a dominant force in the childcare market, becoming the largest publicly traded childcare provider worldwide. At its peak in 2006, ABC Learning had a market capitalisation of AUD 2.6 billion and controlled between 20 to 25 per cent of the long day care market, catering to over 100,000 children and employing around 16,000 staff.
Despite its rapid expansion, ABC Learning’s business model collapsed by 2008, leading to a significant fallout that required federal government intervention. Professor Susan Newberry, an accounting expert, highlighted that the company had become overly reliant on government funding, raising serious concerns about accountability. She stated, “ABC was a creature of government policy,” emphasizing the need for public reporting requirements to ensure transparency.
Lasting Implications for Families Today
The implications of past decisions continue to affect today’s families, particularly millennials and Generation Z parents. Many are now navigating a system that has been marred by systemic issues, including concerns over child safety. As families grapple with rising costs and reports of abuse, the burden of these failures falls squarely on younger generations.
In March 2023, Prime Minister Anthony Albanese dismissed calls for a royal commission into the childcare sector, despite mounting pressure from various stakeholders. The latest revelations have revived these calls, highlighting the urgent need for reform and oversight.
Professor Brennan and other experts have long advocated for placing children back at the centre of childcare policy. Renate Gebhart-Jones, then acting chief executive of the Community Child Care Cooperative Ltd, remarked on the unrealistic expectation placed on parents, stating, “Children are part of our community. This is our future generation, our investment.”
The narrative surrounding childcare has evolved significantly since the early 1990s, and the need for change has never been more pressing. As investigations continue, the hope remains that Australia can address these deep-rooted issues, ensuring that children receive the safe, high-quality care they deserve.


































