From 2020, the COVID-19 global pandemic has highlighted the crucial role of childcare in the lives of families and children, as well as its economic importance to nation states. In Australia, pandemic effects threatened the childcare sector's viability, leading to a period of ‘fee free’ childcare policy. After decades of rigorous marketisation, this unprecedented ‘fee free’ period dispelled the state illusion that market models are unmovable and was robustly supported by families and various other stakeholders. Yet, ‘fee-free childcare’ lasted only three months and childcare was the first industry to be removed from Commonwealth business relief payments. Drawing on these recent happenings, we revisit the question of whether economic free market models of childcare are legally and ethically appropriate policy and law in democratic countries that are signatories of major human rights conventions. To do this, we present and apply an interdisciplinary critical policy and legal analytical lens to the Australian COVID-19 childcare policy context, including the legislative solutions presented, their implementation and implications. To conclude, we posit alternative childcare policy approaches that we argue would orient childcare services within stronger legal and ethical frameworks.