The draft children’s services regulation announced in April 2004 included a minimum standard staff child ratio of 1:5 for children aged under 2 years in centre-based and mobile children’s services. The 2002 draft regulation proposed a better staff child ratio of 1:4. This research examined the likely impact of the 1:4 staff child ratio. The PricewaterhouseCoopers (PWC) report commissioned by the NSW Department of Community Services found that the balance of benefits and costs supported the 2002 draft regulation of 1:4 staff child ratio, even under worst case scenarios (PWC, 2003). National and international research on a minimum staff child ratio for care of children aged under 2 years supports a 1:4 ratio. It is consistent with NSW Government commitment to early childhood development, national and international recommended standards, outcomes for children and improving the availability of qualified and experienced early childhood staff.