A decision by the State Administrative Tribunal on Monday found the centre failed to ensure the safety of the children.
“The emergency evacuation route passed through a couple of outdoor yards,” it read.
“A small section of each yard is exposed to direct sunlight, and the floor covering is rubberised soft fall and a synthetic grass.
“Several children appeared distressed when passing through the first yard, crying and picking up their feet.”
The supervisor aborted the drill as soon as the reaction of the children was realised and staff administered first aid to the three toddlers who had blistered feet once back inside.
The parents of the three children were immediately contacted and collected their children.
The childcare centre, which has never previously had an incident referred to the SAT, showed genuine remorse for the incident and fully cooperated with the Department of Communities in relation to the Education and Care National Law safety breach.
It has since updated its policies to require children to have shoes on at all times while outdoors, and its evacuation drill procedures have been reviewed to ensure any risks to the children are considered before announcing a drill.
The families of the injured children remain enrolled at the centre.