Family First National Director and NSW Legislative Council candidate Lyle Shelton says taxpayer childcare funding must urgently be redirected so parents can choose to care for their children at home, following an extraordinary warning from NSW Police that some childcare centres are failing to report abuse because of the money at stake.
The Sydney Morning Herald reported on the weekend that Detective Superintendent Linda Howlett, commander of the NSW Police child abuse squad, believes more offending is occurring in childcare than is being reported.
"A lot of childcare centres will not report because [they're] making huge amounts of money," Detective Superintendent Howlett told the Herald.
Mr Shelton said the revelation should be the catalyst for fundamental reform of childcare funding.
"This is a crisis. Of course governments must urgently strengthen safeguards, reporting requirements and policing of childcare centres," Mr Shelton said.
"But while that work is being done, why should parents be forced by the tax system to outsource the care of their babies and toddlers to industrialised childcare centres in order to receive government support?
"The money should follow the child. Give parents the choice."
Mr Shelton said parents who wished to use their subsidy at a childcare centre should remain free to do so.
"But parents who believe their baby or toddler is better cared for at home by mum, dad, a grandparent, another family member or a nanny should not be financially penalised for making that choice.
"Government policy currently discriminates against families who make enormous financial sacrifices to care for their own children at home.
"That discrimination must end."
The Herald reported Detective Superintendent Howlett said some centres were reluctant to report abuse because of fears about reputational damage and parents withdrawing their children.
She has called for smart glasses to be banned in childcare centres, while police are pushing for more CCTV and requirements preventing carers being left alone with children.
Notorious daycare paedophile Ashley Paul Griffith, already serving a life sentence in Queensland, is expected to face almost 200 charges relating to his time working in NSW childcare centres.
Previous reporting revealed that 1,856 allegations of physical or sexual abuse were made to the NSW early childhood regulator in the five years to 2025, with about 70 per cent resulting in no further action.
"When the commander of the child abuse squad says some centres are not reporting abuse because there is too much money at stake, governments cannot simply announce another review and carry on with business as usual," Mr Shelton said.
"Ban the smart glasses, improve CCTV, enforce mandatory reporting and prosecute anyone who covers up abuse.
"But we also need to confront the bigger question: why does government provide enormous subsidies when parents outsource the care of their children, but far less support when they choose to provide that care themselves?
Family First has long advocated reforming childcare subsidies so taxpayer support can be used for a wider range of care chosen by parents, including care within the family home.
"This crisis should be the final catalyst for reform," Mr Shelton said.
"Funding must follow parents, not industrialised childcare centres.
"Parents know and love their children better than government bureaucracies or childcare corporations ever will. Trust them with the money and let them choose what is best for their family."
