Why bring up children? The Government view seems to be that children are a commodity soon to be used in the GDP making processes of the economy. Thus a system based on profit but having competition to ensure quality will be the more efficient in producing such ciphers. Happy well adjusted humans are not the aim.
Socialisation must not be indoctrination of a particular political or religious view though the norms of society should be inculcated, “honesty“, patriotism and flag recognition, ANZAAC day etc, striving for the top, owning and using and so on, are okay.
In Happiness by Richard Ladray says happiness does not lie here nor will such produce a caring compassionate society. Studies on brain function of the young brain show that the behavior pattern resulting depends on reinforcing those neural connections that result in the desired behavior within the limits that is of the genetic inheritance. Few if any commercial establishment base their child centre philosophies on such but rather on profit. After all who is going to measure the outcome and if the child is clean quiet well mannered? Correction of defects of the home, poor parental care, lack of books, antisocial attitudes are not in the brief of child minders. Yet children from such backgrounded form a large percentage of those who later are in social conflict.
Naturally parents become emotional to the point of hysteria at sexual abuse of their child but happily allow the child development to be abused by TV and commercial directive. So too with child minding

"Has the government been selling out Australia’s children?", asks Emma Rush.

Probably, but they wouldn't be alone. Many of Australia's parents have been selling out their own children by sending them to child care establishments instead of nuturing them themselves lovingly. I can't imagine why people have children if they can't be bothered to take care of them.

Sending them off to clock watching kiddy-prisons isn't any way to raise up a child

Basing conclusions heavily just on a survey of a (limited)number of employees (with unknown motives)is not very convincing.

With no empirical data to back up these allegations I have a very hard time accepting that there is a problem.

By observing the Australian Institute website one could be led to believe that this is nothing more than a well written leftie rant

The mission statement of the Australian Institute, among other things says:
" Those involved in the Institute have each, from different viewpoints, been concerned about the impact on Australian society of the priority given to a narrow definition of economic efficiency over community, environmental and ethical considerations in public and private decision making. A better balance is urgently needed."

And furthermore:
" Unconstrained by ideologies of the past, the purpose of the Institute is to help create a vision of a more just, sustainable and peaceful Australian society and to develop and promote that vision in a pragmatic and effective way. "

A quick perusal of the staff profiles shows there is a fair amount of experience performing advisory services for the Greens and Australian Democrats as well as teaching at several prestigious universities. No private industry experience.

Until survey data with appropriate statistical analysis is provided this is only an arm waving exercise.

Has the government been selling out Australia’s children?

The question is redundant. The government has been selling out everyone who doesn't own a share portfolio or listed company.

So, how do a childs own parents compare in the child care stakes?