Federal Member for Gippsland Darren Chester has called for greater funding certainty for regional childcare services, with Paynesville Child Care the second Gippsland community-run provider to miss out under Round 5 of the Community Child Care Fund.
Mr Chester recently visited Paynesville Child Care and met Paynesville Neighbourhood Centre Manager Julia Fitz-Gerald to discuss the mounting financial and operational pressures facing the service.
Operating through the Paynesville Neighbourhood Centre for more than 30 years, the service currently supports 41 children from 35 families, with another eight children on its waiting list.
“Childcare is an essential community service that allows parents to work, study and participate in community life,” Mr Chester said.
“In metropolitan areas, families have several providers within a relatively short distance. In communities like Paynesville, the options are far more limited, and the services that do exist are already under pressure.
“Paynesville Child Care is the only not-for-profit, community-run childcare service in town, while the other local provider is already heavily subscribed.
“If this service was lost, families couldn’t simply assume there would be another childcare place available down the road.”
Paynesville Child Care was unsuccessful in its application for a Community Child Care Fund Sustainability Grant despite strong local demand and ongoing financial pressures.
The result follows a similar outcome for Kids House in Heyfield, which also missed out under Round 5 despite relying on Commonwealth support to remain financially viable.
Mr Chester said having two Gippsland community-run services facing funding uncertainty highlighted the challenges of delivering childcare in regional communities.
“These services face the same staffing requirements, regulatory obligations and fixed operating costs as larger providers, but they don’t have the scale or financial buffers available in bigger markets,” Mr Chester said.
“Paynesville Child Care is dealing with rising compliance costs, fluctuating enrolments and a younger mix of children requiring higher staffing ratios, all while trying to keep fees affordable for local families.”
“Julia and the team are doing everything they can to keep providing a service families clearly value, but funding insecurity is another challenge on top of an already mounting list.
“They need enough certainty to plan ahead, retain qualified educators and reassure families that this important local service has a sustainable future.
“If parents can’t access childcare, they may be forced to reduce their working hours, leave employment altogether or travel significant distances every day.
“That has flow-on impacts for local hospitals, businesses, farms and other employers which are already competing for workers.”
A Senate Committee on Education and Employment is currently examining the state of early childhood education and care in rural, regional and remote communities, including service gaps, workforce shortages, the effectiveness of the Child Care Subsidy and existing Commonwealth programs.
Pictured: Federal Member for Gippsland Darren Chester with Paynesville Neighbourhood Centre Manager Julia Fitz-Gerald during his visit to Paynesville Child Care.


