A childcare centre in the Department of Industry, Science and Resources building will close after the government agency stopped subsidising its rent, as the sector feels the pinch of a shift to flexible work.
Community Services #1, which manages Binara Early Education and Care Centre at the department's Civic office, advised parents on Monday it would close on April 14.
"Late last year we were notified that the Department of Industry, Science and Resources would no longer be managing the childcare centre lease under a workforce benefit model," a letter sent to parents stated.
"This meant that as an organisation we would move into paying commercial rent."
The childcare centre had been in talks with the department since late last year.
"We understand that this may be unsettling for you and your family, and we would like to assure you that the decision was not taken lightly," the letter stated.
Chief executive of Community Services #1 Amanda Tobler said the difference in rent would be dramatic, forcing the centre to close.
"We were unable to negotiate a rent that we could afford," she said.
"With the drop in occupancy as a result of COVID and the changes to government workplace activities, or how staff are doing much more hybrid methods of working, we just were unable to maintain the viability of the service."
A spokesperson for the department confirmed the childcare centre had opted to close after lease discussions.
The department is offering support to affected staff, they said.
"Managers have been encouraged to allow affected staff to work flexibly while other care arrangements are made," they said.
"Affected staff have also been encouraged to access a free service provided by the department that provides advice and support to employees to find care arrangements for their children."
A decision about the future of the site has not yet been made, the spokesperson said.
The Department of Industry, Science and Resources has a lease agreement for the office space until December 2031.
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