Hi, we're a Early Childhood Service and we have a number of nursery aged children with separation anxiety. Especially when it comes to sleeping alone in cots, as parents have said they sleep with their babies in their bed. We've trialled them on floor beds with close supervision ie, sitting right next to them, + parents permission + risk assessments. This worked extremely well, and we were finally able to get them to sleep. Whilst I understand it's not recommended to move little ones out of cots until 18 months. What would be our best practise in this instance?

Red Nose has no specific age that baby is recommended to move from a cot to a floor bed.
Red Nose recommends that when baby is attempting to climb from their cot, baby needs to move to a bed (eg floor bed, toddler bed, mattress)
See also brochure linked below about other concerns for physical environment when moving a child to a bed, regardless of age.
“This usually occurs when toddler is usually between 2 - 3.5 years of age, but may be as early as 18 months.”
https://rednose.org.au/downloads/RN0407_22_Cot-to-Bed.pdf

While there is no specific age, ACECQA recommends not moving baby from the cot too early, but doesn’t recommend an age.
https://www.acecqa.gov.au/resources/supporting-materials/infosheet/safe-sleep-and-rest-practices

“A cot that meets Australian mandatory standard AS/NZS 2172 is the safest option for infants, and for children who are not yet attempting to climb.”  P4
https://www.acecqa.gov.au/sites/default/files/2024-08/PolicyGuidelines_SleepRestForChildren_August2024.pdf
Please check with ACECQA or NSW Dept Education - ECEC if there is any concerns from a regulatory perspective about this & risk assessment.