Direct gap fee collection measure passes parliament

The Australian Government’s legislation for the direct gap fee collection measure passed through the Australian parliament today.

From 1 January 2026, Family Day Care (FDC) and In Home Care (IHC) providers must collect Child Care Subsidy (CCS) gap fees directly from families. This means that educators in these services will no longer be able to collect the gap fee themselves on behalf of providers. All gap fees must be paid by EFT (unless an exemption has been granted).

We have partnered with the following organisations to support your transition:

  • Family Day Care Australia to support FDC providers
  • NSW Family Day Care Association to support IHC providers.

For more information and to access resources, visit: