Provider obligations

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.

Read our announcement to find out more.

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.

Learn more about financial reporting for large providers

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. 

Learn more about our work with other agencies