A childcare centre in Sydney’s eastern suburbs facing closure has been offered 12 months of free rent by the City of Sydney in an effort to keep the service operating. Goodstart East Sydney in Darlinghurst had announced plans to close on November 26, citing significant financial losses despite having high occupancy.

More than 60 families are enrolled at the centre, while more than 100 children are reportedly on its waiting list. Parents rallied on Saturday to oppose the planned closure, saying there are very few alternative childcare places available in the surrounding area.

Goodstart said the centre faces high operating costs, including additional staffing requirements because the facility is spread across multiple levels. The provider also said its request to increase fees beyond the current $175-per-day cap had been rejected by the federal government.

In response to the community campaign, the City of Sydney offered the centre a 12-month rent waiver while discussions about its future continue. Lord Mayor Clover Moore said the offer was intended to provide parents with greater certainty and stability.

Goodstart has not yet confirmed whether it will accept the council's offer. The organisation leases three other sites from the City of Sydney, while the council already operates four childcare centres itself.

Parents say losing the Darlinghurst centre would create major difficulties for families who rely on local childcare and could also affect educators employed at the facility. Some families have already contacted other nearby centres but found them full or unable to provide suitable places.

The centre's future remains unresolved, but the council's offer provides a temporary opportunity for Goodstart and the community to explore alternatives to closure.