Investigation reveals systemic failures as banned worker continues in sector for four years

A major investigation has uncovered alarming deficiencies in NSW's childcare regulatory system, with newly released data showing the state's primary regulator failed to take enforcement action in approximately 70 per cent of investigations into alleged child abuse.

The figures, obtained through Freedom of Information laws, reveal that between 2020 and 2025, the NSW Education Department's Early Childhood Education and Care Regulatory Authority investigated nearly 2,000 allegations of child sexual or physical abuse, but concluded the vast majority with no punitive measures against accused workers or centres.

The disclosure comes as pressure mounts on the NSW Government to overhaul a fractured regulatory system that former officials describe as "broken" and riddled with dangerous gaps in information sharing.

Nearly 2,000 Allegations, Limited Consequences

Childcare providers across NSW have reported 1,856 allegations of sexual or physical abuse involving staff members to the ECEC Regulatory Authority since 2020. Reports have been climbing steadily, with more than 400 allegations lodged in 2024 alone.

Despite this surge in reporting, the data reveals a troubling pattern: strong enforcement action remains rare.

The regulator's most powerful tool, "statutory compliance action", was used in only 180 investigations over the five-year period, representing approximately 10 per cent of all cases. These actions can prohibit individuals from working in childcare, impose financial penalties on centres, or result in provider licences being cancelled.

Another 13 per cent of investigations resulted in "administrative compliance action", which includes less severe measures such as monitoring arrangements, formal meetings, warning letters, or official cautions.

The remaining cases, more than 1,300 investigations, resulted in no action whatsoever.

Data from the Office of the Children's Guardian, which handles Working with Children Checks, indicates that around 60 of last year's 414 reports related specifically to sexual offences or sexual misconduct.

When approached for comment, an ECEC Regulatory Authority spokesperson insisted the organisation investigates all allegations with appropriate rigour.

"Where allegations are substantiated or there is an unacceptable risk to children, the regulatory authority will not hesitate to act to protect children's health, safety and wellbeing, including by prohibiting individuals from the sector, suspending or cancelling service approvals or taking legal action where necessary," the spokesperson said.

The authority noted it has prosecuted 37 people and banned more than 200 individuals from the childcare sector since 2021.

Banned Worker Slips Through the Cracks

Even more troubling than the low rate of enforcement action are revelations that communication breakdowns between regulatory agencies have allowed prohibited workers to remain in the sector.

Documents tendered to a recent parliamentary inquiry exposed a case that exemplifies the system's failures; a childcare worker banned from the industry in 2019 by the Department of Education was later issued a new Working with Children Check by the Office of the Children's Guardian, enabling him to continue working casually at four different centres in Sydney's north until 2023, four years after being prohibited.

The case demonstrates what two former senior government officials, speaking to the ABC, characterised as a "significant problem" with information sharing between the state's childcare regulators.

NSW's regulatory structure is split between two bodies: the Department of Education oversees the state's approximately 6,000 childcare and outside school hours care services, whilst the Office of the Children's Guardian administers all Working with Children Checks—the primary mechanism for preventing unsuitable individuals from accessing children.

Although the OCG can bar individuals from holding a WWCC, one official revealed that staff processing these checks are not always notified when the other regulator is investigating a worker.

The friction between agencies has persisted for years, with ongoing disputes about what information should be shared and how quickly it should be transmitted.

Information sharing problems also exist within the OCG itself. A former bureaucrat told the ABC that unclear legal guidance left teams uncertain whether they could share information about potential high-risk offenders with colleagues in the WWCC processing unit.

Top Police Officer Steps In

The information sharing dispute became so entrenched that in 2024, Detective Superintendent Linda Howlett, who heads NSW Police's Child Abuse Squad, intervened personally to broker a solution.

Detective Superintendent Howlett facilitated negotiations for a memorandum of understanding between the ECEC Regulatory Authority, the OCG, and NSW Police to establish clear protocols for information sharing between the three agencies. The agreement has yet to be finalised.

The OCG's organisational problems extend beyond information sharing. A recent separate inquiry into the agency exposed what was described as a chaotic and dysfunctional workplace culture, ultimately resulting in the removal of the authority's head over an alleged undisclosed conflict of interest.

Former government officials with direct knowledge of the childcare regulatory system expressed profound concern about its effectiveness.

"Child protection has so many silos," one former official said. "Information sharing has always been a problem, particularly in childcare, where there's a blurring of roles between the two regulators.

"After these horrendous offenders have done the damage, you can piece it together and each agency had enough there from the beginning to arrest him and stop him in his tracks."

Another official offered a stark assessment: "I think the whole child protection system is broken. It really is. When the stakes are so high, it's appalling it's so wrong so frequently."

The NSW data emerges as part of a broader national investigation into childcare sector safeguarding. The ABC's Four Corners has identified almost 150 childcare workers nationally who have been convicted of, charged with, or accused of sexual abuse and inappropriate conduct with children. Five cases in NSW are currently before the courts.

The NSW child sex offender register contained more than 5,300 names as of July 2024.

The revelations are likely to intensify demands for comprehensive reform of NSW's childcare regulatory framework. Questions are being raised about whether the current split-agency model is fit for purpose, and whether structural changes are needed to ensure seamless information flow between bodies responsible for child safety.

With abuse reports increasing but enforcement action remaining stagnant, parents and advocacy groups will be demanding urgent answers about how the system allowed so many allegations to be investigated without consequence—and what the government intends to do to fix it.

The data suggests that whilst childcare workers and centres are increasingly willing to report concerns, the regulatory response has not evolved to match this increased vigilance, leaving potentially dangerous gaps in the protection of some of NSW's most vulnerable citizens.