Changes to gap fee payments from July 2023

This content was published on Wednesday 22 February 2023. There may be more recent updates available.

From 1 July 2023, families using child care must pay the gap fee using electronic means.

The gap fee is the difference between the provider’s fee and the Child Care Subsidy (CCS) amount. Find out more about gap fees and Child Care Subsidy.

Electronic funds transfer, or EFT, is when a customer pays a bill using electronic means. Typical EFT payment methods include:

  • bank or credit card, including mobile wallets
  • direct deposit or bank transfer, including PayID
  • online payment systems through third party software
  • BPAY or Centrepay.

This change will help us protect CCS against fraud and non-compliance. We will check EFT payments against provider and service bank statements and receipts. This way, we can prevent fraudulent CCS claims for care that did not take place. In turn, this ensures CCS flows fairly to families.

Most services already accept EFT payments. This is because it’s safer for staff and easier to administer.

Similarly, most families get salaries or benefits electronically, making it easy to pay the gap fee using EFT. Over 98% of families already use EFT to pay their gap fee.

Families who cannot use EFT to pay their gap fee should talk to their service. Families seeking EFT exemption might be eligible for Additional Child Care Subsidy (ACCS). ACCS may cover all of a child’s child care fees.

Exemptions will apply in limited circumstances. We will provide more information about exemptions soon.

Read more about the changes to gap fee payments.

We will provide resources for providers to share with families soon.

Organisations that support the early childhood education and care sector, such as peak bodies and industry groups, can download a kit to share this information with providers.

To get information and updates, early childhood providers and services should: