We undertake compliance activities to help make sure Child Care Subsidy (CCS) goes to its intended beneficiaries – families. We take enforcement action against providers and services who do not comply with Family Assistance Law (FAL).
On this page:
Our approach
Our compliance approach recognises that many providers and services willingly comply with their obligations. We:
- provide information, education and resources to help providers and services understand and comply with their obligations
- engage with stakeholders and the sector to support providers and services who want to do the right thing
- regularly check providers are complying with their obligations and take compliance action when they’re not
- investigate tip-offs and reports of non-compliance.
We may ask you to provide information, documents or records that will help us administer FAL. Read more about compliance notices. Information and documents may include, but is not limited to:
- records which support a child’s attendance at a service
- evidence of gap fee payments
- a statement of tax record (STR).
We may send authorised officers to conduct unannounced site visits and compliance checks to:
- identify CCS compliance issues
- report quality and safety risks to state and territory regulators.
Financial Integrity Strategy
Our Child Care Subsidy Financial Integrity Strategy outlines the department's approach to maintaining the integrity of the Child Care Subsidy system.
Read about our CCS Financial Integrity Strategy
Strengthening quality and safety regulation
We take a whole of system, data-driven approach to strengthening safety in early childhood education and care (ECEC).
FAL places quality and safety as a paramount consideration when:
- assessing CCS approval
- maintaining ongoing CCS approval.
We will take compliance action where there are identified risks to child safety. This includes applying conditions or preventing access to the Child Care Subsidy (CCS).
Compliance video series
Watch these videos to understand your obligations under FAL.
Watch our compliance video series
Compliance actions
Before we take compliance action, we give the provider:
- a notice of our intended action
- opportunity to provide written submissions.
In some instances, FAL allows us to take compliance action without giving notice. For example:
- where a provider’s approval under National Law is suspended or cancelled
- when imposing additional conditions of approval
- when there are risks to quality or safety.
We generally do not take action where there is an honest mistake. You can contact us if you are:
- uncertain about how to do something
- concerned you may have done something incorrectly.
Any action we take will:
- be proportionate
- consider the risk to the integrity of CCS
- consider the severity of the non-compliance
- consider your past behaviour or compliance history
- consider your response to any earlier non-compliance action.
We consider the local regulator’s view of the provider’s safety performance and track record. This includes the provider’s:
- commitment to safety and quality
- improvement over time
- previous and current ratings and assessments, including conditions imposed
- serious incidents, complaints and breaches of safety laws
- compliance with CCS obligations.
We will support services that require improvement. The support will work alongside regulation and may include:
- targeted support tools and guidance
- training on legislative, regulatory and quality expectations
- data feedback to help services understand their risk profile
- access to mentoring, professional development and other sector supports where available.
What happens if you don’t comply?
We may take compliance action if you fail to meet your obligations.
Compliance action could include:
- issuing a show-cause notice
- issuing infringement notices
- imposing conditions on provider or service CCS approval
- refusal of applications for new services
- varying your provider approval to:
- reduce the number of any places allocated to your service
- suspend payments of fee reduction amounts for one or more approved services for up to 3 weeks
- suspend or cancel CCS approval for one or more services
- suspending or cancelling your provider CCS approval for all services
- issuing a debt
- seeking civil penalty orders
- criminal prosecutions.
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
Submit a tip-off
If you have information related to people or child care services or providers who are not following the rules, you can report it to us anonymously. Our CCS fraud tip-off form is anonymous and only takes a few minutes to complete.