Craig Ryan, director of Kids Active, shared his concerns with 9News, stating, “These are not the industry giants; these are family-run centers that are struggling to find solutions.”

The financial grant provided to child care centers is determined by the number of children enrolled and the hours of care they receive.

Providers have voiced concerns about a discrepancy between the wages they must pay their staff and the amount covered by federal funding, forcing them to shoulder the financial shortfall.

Ryan explained, “I am caught between maintaining the center’s financial viability and managing staff levels.”

He emphasized, “It should be straightforward—if I can demonstrate my salary expenses, I should be compensated for any excess costs.”

Since the grant was introduced 12 months ago, the federal government says around 15,000 workers have either started or returned to the sector.

“The changes that we have made, have meant that the average educator gets about an extra $200 week in their pocket,” Assistant Minister to the PM, Patrick Gorman, said.

Owners of Eden Early Learning say they’ve had to take drastic measures just to stay afloat, including reducing staff numbers right before Christmas.

“The Prime Minister’s been very open about his view, that some form of a universal education care system is the sort of model that we want to investigate,” Gorman said.

Ryan said he just wants the government to “do right by us, that’s all I’m asking”.