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Heyfield childcare faces closure after losing federal funding, putting local families, educators and essential community services at risk

Heyfield's only childcare service faces closure after losing $270,000 in federal funding, prompting Darren Chester to seek urgent assistance while a Senate inquiry examines rural and regional child care access.

By news@gippsland - 24th September 2026 - Back to News

Heyfield's only childcare service faces closure after losing access to federal support it has relied on since 2017, leaving more than 30 local families and five educators with an uncertain future. Kids House, which is operated by the Heyfield Community Resource Centre, has relied on the Community Child Care Fund to remain financially viable. The centre applied for $270,000 over three years under Round 5 of the fund to support staff wages, but its application was unsuccessful.

Darren Chester met Minister Jess Walsh, seeking urgent action to keep Heyfield's only childcare service open and explore ongoing funding options

Heyfield childcare crisis

Without replacement funding, the centre has warned Kids House is no longer financially viable and will be forced to close. Federal Member for Gippsland Darren Chester attended an urgent meeting with Federal Early Childhood Education Minister Senator Jess Walsh, calling for immediate action to prevent the avoidable loss of Heyfield's only childcare service, and for the Department to examine the centre's circumstances and available ongoing funding options.

"Kids House has been part of Heyfield for more than 20 years, and it is the only childcare service in town. More than 30 local families rely on this service, and five qualified educators are employed through the centre."

"This is not a nice-to-have service. It is essential community infrastructure that allows parents to work, study and participate in community life. We cannot afford to lose childcare in Heyfield because a small, community-managed provider in a rural town cannot absorb rising costs without fair and ongoing support," Mr Chester said.

Childcare funding review

Mr Chester said the situation highlighted the need for scrutiny of whether the Community Child Care Fund model is delivering sustainable access for small rural communities. "Regional families should not be disadvantaged because their local childcare service operates in a small market with limited capacity to absorb rising costs. Funding arrangements need to recognise the essential role these services play in supporting employment, education and the long-term viability of regional towns."

"I have written to the Federal Education Minister seeking an urgent meeting, immediate assistance for Kids House and a review of the funding arrangements. The first priority must be keeping Kids House open while we work through the longer-term issues," Mr Chester said.

Rural childcare inquiry

Mr Chester said Heyfield had already endured significant economic disruption following the Victorian Labor government's decision to shut down the native timber industry. "Heyfield has already been hit hard by Labor's decision to close the native timber industry. We should be doing everything possible to support local jobs, local families and essential services, not allowing another important community service to disappear."

The Federal Opposition, led by Shadow Minister for Choice in Childcare and Early Learning Senator Matt O'Sullivan, together with the crossbench in the Senate, has successfully moved to establish an inquiry into whether Australia's early childhood education and care system is delivering for families in rural, regional and remote communities.

The inquiry will examine gaps in childcare and early learning services, workforce shortages, the effectiveness of the Child Care Subsidy, and whether Commonwealth programs are meeting the needs of families living outside Australia's major cities.

Regional childcare inquiry

Mr Chester has urged Gippsland childcare services facing similar challenges to make a submission to the inquiry. "Families in regional communities need more than an announcement about cheaper childcare. They need a service they can actually access," Mr Chester said.

"The Senate inquiry is an opportunity to make sure the experiences of Heyfield and other small communities are heard. Rural childcare services are essential community infrastructure, and policy settings must strengthen, not weaken, access for regional families," Mr Chester said. Mr Chester is set to visit Kids House at the Heyfield Community Resource Centre on Monday, October 5.

Pictures from Darren Chester MP website.

Source: http://gippsland.com/

Published by: news@gippsland.com

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