Property developers investing in 'farms for children', NSW childcare report finds
A New South Wales parliamentary inquiry report found that property developers are investing in childcare chains to capture real estate yields, turning the sector into 'farms for children'. The report recommends stricter ownership disclosure and quality audits.
The New South Wales parliamentary inquiry into the childcare sector released its final report on Tuesday after a six-month investigation. The report found that property developers have bought up roughly a third of childcare facilities in the state over the past five years, treating the buildings as strategic real-estate land for future developments. Committee chair Wendy Lindsay said: 'The sector has shifted from a service for children to a real-estate yield model.'
Private childcare revenue across the state reached A$8.6 billion a year; developer-owned chains run with occupancy 14 percent above the sector average. The report also found that some facilities did not meet minimum standards for space per child, outdoor play area and qualified staff ratios. Of audits the NSW Education Ombudsman conducted in 2024, 22 percent found non-compliance.
The report recommends: (1) public disclosure of ultimate ownership to children and families; (2) mandatory annual quality audits at each facility; (3) tying federal subsidies to a service quality score. NSW Education Minister Prue Car said: 'We will take the recommendations seriously; the first legislative changes will be in parliament by September.' The federal government has also launched a parallel Productivity Commission review.
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