Four Canberra childcare providers have been named and shamed on a public register released by the federal government on Saturday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The blacklist, part of the Turnbull government's crackdown on the notorious day care sector, showed the four operators had their funding cancelled or suspended between July 2016 and September 2017.
One had its funding cancelled because of fraud, while the other three had their funding immediately suspended because of non-compliance with the law.
It is the first time the federal government has used a public register to name and shame dodgy operators in the sector.
All four Canberra providers named appear to be no longer operating in the territory. The Canberra Times made calls to the mobile numbers listed online for each of the providers, and found they were either disconnected, or no longer receiving incoming calls.
A search on the Australian Children's Education and Care Quality Authority confirms none of the named providers are currently approved providers.
Federal Education Minister Simon Birmingham said the register was published as a warning to non-compliant childcare centres that they would be "hung out to dry" by the Turnbull government.
"Those who go down the wrong path should be held to account for their actions," he said.
"This is about making sure the track record of child care providers is crystal clear to families."
Along with the states, the federal government has ramped up monitoring of unscrupulous day care practices through a dedicated taskforce, saving an estimated $1.8 billion since 2014 through compliance checks.
The loss of Commonwealth subsidies does not automatically shut down a childcare centre. It is the states and territories that have responsibility for regulation and checking compliance.
However, it would be difficult for a provider to continue operating without access to federal government assistance.
There were 179 dodgy operators named on the federal government's new list, many of which had their entitlements suspended or cancelled due to fraud.
Typically, the scams work by childcare providers claiming subsidies for extra children, or claiming money for hours they didn't work. The family day care sector primarily consists of small, at-home operators looking after four to six children at a time.
In October 2015, ACT education authorities shut down Long Life Family Day Care after they were unable, despite extensive checks, to confirm there were any children under the organisation's care.
In 16 months of business, the operator had received more than $1.6 million in subsidies. In 2016, the ACT government confirmed the provider was out of business for good.
The federal government's new register revealed that Flynn childcare provider, Creative Kids Family Day Care, had its funding cancelled in July 2016 because of fraud.
The list says the provider made a false statement or document and fraudulently obtained fee reductions.
The list also says the provider failed to meet its obligations under the law, and has also not complied with a condition to have a suitable person operate the service.
In Pearce, Almighty God Blessing Family Day Care, had its funding immediately suspended from March last year because of non-compliance with the law.
Australian Education and Training Services in Belconnen was also stripped of its entitlements for non-compliance, with an immediate suspension from October 2016.
In Downer, Great Beginnings and Future Family Day Care had its funding immediately suspended from August 2016, also for non-compliance.
Immediate suspensions apply if the centre is breaking the law, if there is an imminent threat to children's health and safety, or in "urgent circumstances".
No centre that has lost its government subsidy has had it reinstated.
The Compliance Action Register will be updated every three months and is published by the federal Department of Education.
