FAMILY day care will be opened to the private sector under new Federal Government rules starting next June.
But Wyndham City Council will no longer operate the service after the new laws come into force.
Family day care offers child care for small groups of children in the home of an approved carer.
About 500 Wyndham children from 360 families are enrolled with 82 local family day care providers.
Mayor Shane Bourke said the Council would help community or private groups participate, but would not continue its own involvement as an operator.
“Every positive that we can offer in terms of guidance or assistance, we will,” he said.
The Federal Government expects the new system to generate about 25,000 extra places across Australia by 2009.
Fees charged for the service, which work out to about $4.50 an hour per child before subsidies, will also be deregulated and decided by individual providers.
Providers will still need to meet quality and licensing requirements.
Cr Bourke said the council was disappointed local governments were not consulted before the changes were announced.
“We wouldn’t have changed it if we’d had the choice,” he said.
“But the bottom line is that we don’t want it to go backwards and are very committed to continuing the service.”
Cr Bourke said no council jobs would be lost as a result of the changes.