From 1 July 2023, large providers must report financial information, including information about revenue, profits, and leasing arrangements.
On this page:
Changes for large providers from 1 July 2023
This information will help us:
- assess the financial viability of large providers
- improve the transparency of child care costs
- protect the government’s investment in the sector.
Do these obligations apply to me?
The financial reporting obligations only apply to large providers.
A large provider is one that:
- operates 25 or more services
- shares operation of 25 or more services with another provider
- plans to operate or share operation of 25 or more services.
Providers are considered to share operations if:
- both providers have at least 25% of persons with management or control (PMCs) in common
- one provider owns 15% or more of the other
- one provider is entitled to receive 15% or more of any dividends paid by another provider.
If you operate, or share operation of, less than 25 services, these financial reporting obligations will not apply to you.
What do I need to report?
Large providers must report financial information, including information about revenue, profits, and leasing arrangements.
The information we’ll require from large providers will depend on their circumstances and may include:
- a balance sheet
- a profit and loss statement
- a statement of changes in equity
- a cash flow statement
- details of leasing arrangements and costs
- a Director’s report if available
- if audited for the reporting period, the Auditor’s report
- information such as if a provider has a credit facility or any debt guarantees in place from a separate entity.
We’ll contact large providers directly via email to let them know what to report. Make sure your provider-level email address is up to date in the Child Care Subsidy System.
How do I report?
We’ll contact large providers directly via email to let them know how to report. Make sure your provider-level email address is up to date in the Child Care Subsidy System.
When do I report?
We’ll contact large providers directly via email to let them know when to report. Make sure your provider-level email address is up to date in the Child Care Subsidy System.
What will you do with the information?
This information will help us:
- assess the financial viability of large providers
- improve the transparency of child care costs.
We may also publish some information, such as profits, revenue and rental costs, on StartingBlocks.gov.au.
StartingBlocks.gov.au is a free national website that helps parents choose the best education and care for their children. It’s the only place to find information about approved early childhood services.
Why is this necessary?
Monitoring the financial health of large providers will help us identify and mitigate risks posed by the sudden exit of large providers from the market.
Publishing information about fees, profit and revenues will improve the transparency of child care costs. It will also increase the amount of information available to families when choosing a service.
What are the consequences if I don’t comply?
We may take compliance action if you fail to meet your obligations. Compliance action could include:
- putting conditions on your approval
- issuing an infringement
- suspending or cancelling your approval.
When do these obligations start?
The financial reporting obligations will start from 1 July 2023.
Who can I contact if I have questions?
If you have questions, please contact ccshelpdesk@education.gov.au or 1300 667 276.