Early childhood education and care providers that administer the Child Care Subsidy (CCS) must comply with Family Assistance Law (FAL). Find information and resources about your legal obligations.
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In the 2024–25 Budget the Australian Government committed to new measures that build strong and sustainable foundations for future reform of early childhood education and care.
The law
Your obligations
Providers have a range of obligations under FAL. These obligations help ensure the integrity of CCS payments.
Be an approved provider
Providers must be approved to operate an early childhood education and care (ECEC) service and administer CCS.
Find out how to become an approved provider
Identify all persons with management or control
A provider is a legal entity. A provider’s legal obligations apply to certain people known as ‘persons with management or control’ or ‘PMCs’.
Learn more about persons with management or control
Meet fit and proper requirements
Certain people must be considered by us to be ‘fit and proper’ to handle public money.
Learn more about fit and proper requirements
Keep records of all background checks
Certain people must have background checks. Providers must have evidence of these checks. In some cases, providers must report the checks to us.
Learn more about background checks
Keep updated working with children checks
All educators and some PMCs must have a working with children check. Providers must have evidence of these checks. In some cases, providers must report the checks to us.
Learn more about working with children checks
Enrol children correctly
Providers must enrol all children correctly so families can get CCS. In most cases, children must be enrolled under a Complying Written Arrangement (CWA). You must submit enrolment notices on time.
Learn more about enrolling children
Submit accurate session reports
Providers must submit accurate and complete session reports. You must submit them on time. This is so families get the right amount of CCS.
Learn more about submitting session reports
Collect gap fees electronically
Providers must take all reasonable steps to collect gap fees from families electronically.
Learn more about collecting gap fees
Issue statements of entitlement to families
Providers must issue a fortnightly statement of entitlement to families who get CCS.
Learn more about statements of entitlement
Notify us about changes
Providers must report a range of matters to us, including fees, vacancies, closures and changes to information.
Learn more about notifications and reporting
Keep accurate records
Providers must keep certain records for set timeframes. You must tell us the location of records in certain circumstances.
Learn more about record keeping
Offer only allowed inducements
Providers can only offer certain types of inducements to secure a child’s enrolment.
Learn more about inducement and advertising at your service
Respond to notices we send you
We issue notices if we think you have information, documents or records that will help us administer FAL.
Learn what to do if you get a section 158 or 67FH notice
Large providers must report financial information
Large providers must report financial information to us, including revenue, profits and leasing arrangements.
Compliance and enforcement
We may take compliance action if you fail to meet your obligations. Compliance actions can include:
- issuing infringement notices
- suspending or cancelling your CCS approval
- seeking civil penalty orders
- criminal prosecutions.
Find out more about compliance actions we may take.
Resources
Check out a range of information and resources to help you and your staff comply with your obligations.
Keeping the system fair
The department deploys a range of detection methods to identify suspicious claims and behaviours.
Submit a tip-off
If you have information related to people or child care services or providers who are not following the rules, can you report it to us anonymously.
Our CCS fraud tip-off form is anonymous and only takes a few minutes to complete.
Providing information to the department
You may get a section 158 or 67FH notice if we think you have information, documents or records that will help us administer FAL.
These notices are legal documents requiring you to provide us with information.
Find out what to do if you get a section 158 or 67FH notice
Working with other agencies
We work with other agencies to keep the system fair. This includes sharing intelligence and information, exchanging data, and engaging in joint taskforces and programs.