Substandard childcare centres will be shut down or stripped of taxpayer support under a new rating and inspection regime to start next year.

From July, all daycare centres will be given a “quality rating” for the first time, so parents can see how centres comply with new regulations announced last Friday by

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the federal, state and territory education ministers. Plans for a simple start rating – such as that used in hotels – have been scrapped in favour of wordier descriptions of a centre’s performance.

Now, the best centres will be given a rating of “excellent”, and the worst will be labelled “significant improvement required”.

Average centres will be rated as “meeting national quality standard”.

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Child care Minister Kate Ellis revealed centres

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would be shut down if they failed to improve after being given the lowest rating.

“That’s an option,” she told The Australian. “But our preference will always be to work with centres to

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try to lift their quality.”

Ms Ellis said substandard centres might also lose their eligibility for taxpayer subsidies — meaning parents would no longer pocket federal government rebates for their childcare fees.

Such centres would become unviable, she said, as most parents would leave the centre.

Ms Ellis said parents should take notice of the rating results and “vote with their feet”.

Australian Childcare Alliance president Gwynn Bridge said centres could be given a low rating just for failing to fill in the right paperwork — but could appeal.

“It’s harsh,” she said yesterday. “But at least now we do have an opportunity to fix things up and call for another review.”

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