Recent federal and New South Wales reforms targeting childcare safety are reshaping the sector. The governments at both levels have introduced, or have announced plans to introduce, stricter compliance measures following high-profile safety scandals.

Some of the reforms include mandatory CCTV trials in up to 300 centres nationwide, compulsory national child safety training for staff, a national childcare worker register, public display of compliance breaches and significantly higher penalties for offences – up to 900% higher than current penalties for large providers.

Putting children’s safety first

These changes aim to ensure children are safer in early education, reflecting a shared commitment across the sector: protecting children is everyone’s priority. This is something we at Ligo Finance, as well as our clients, feel very strongly about. By investing in their own premises, operators can implement safety measures more quickly and effectively, ensuring children are protected to the highest standard.

Rising operational and compliance costs

The new measures are likely to increase operational and compliance costs for childcare centres. Installing CCTV, upgrading facilities, maintaining records for national registers and providing staff training all require investment.

Higher penalties for breaches could place financial pressure on operators who do not have full control over their premises.

Why owning makes financial and operational sense

Some of the reforms, such as new CCTV, may require upgrades to your premises. For an owner-operator, owning the property means having full control over these crucial renovations. You can install CCTV, update facilities to meet new safety standards and make other necessary improvements without needing a landlord's permission.

Additionally, owning your own centre means having more control and a better understanding of your cash flow without potential rent hikes. This stability is invaluable when other costs, like staff training and technology, are set to increase.

Childcare is a sector where parents rightly demand the highest standards of safety and quality. By proactively investing in modern safety infrastructure – like state-of-the-art CCTV and improved facilities – an owner-operator can create a centre that stands out to parents. This can lead to higher enrolment rates and a positive reputation as a safe, compliant centre.

These investments also make the business a more attractive workplace, helping to attract and retain quality staff.

Ultimately, a compliant and secure environment improves the centre's reputation and its long-term revenue, adding value to the business and the underlying property.

 

With safety reforms on the way, owning your childcare centre can give you control, predictability and growth potential. Ligo Finance can help operators secure tailored loans to make it happen. Get in touch today.