Changes to inducements in early childhood education and care sector from 2023

Early childhood education and care providers may offer only certain types of inducements from 1 January 2023.

An inducement is an incentive offered by a provider to secure a child’s enrolment.

From January, inducements that are financial or not directly associated with the quality or provision of education or care services will not be allowed. Some examples of inducements not allowed may include:

  • cash or vouchers
  • iPads, tablets or other electronic devices
  • other gifts.

Discounted or free care is not affected by this ban and may still be offered. However, fee discounts must be reported correctly if any CCS is being claimed.

You can still advertise your service to prospective families and offer free site visits or trials periods. You may also issue marketing merchandise to the value of $30 per complying written arrangement.

By 1 January 2023, you must:

  • stop offering inducements that are not allowed
  • ensure any services or educators under your approval stop offering inducements that are not allowed
  • update your marketing material, both printed and online, to remove inducements not allowed.

The measure is part of the Government’s commitment to improving the transparency of child care fees. It supports a fairer market across the sector.

We may take action against providers that continue to offer inducements not permitted under the law. This could include:

  • putting conditions on your approval
  • issuing an infringement notice and penalty
  • suspending or cancelling your approval.

If you have questions, contact the CCS Helpdesk on 1300 667 276 or by email.

If you think a provider is offering inducements that are not allowed after 1 January 2023, you can tell us. Call 1800 664 231 or email the tip-off line.