Reporting Child Care Subsidy fraud via a tip-off

If you suspect a child care provider, service or employee is committing Child Care Subsidy (CCS) fraud, you can tell us.

On this page:

What is CCS fraud?

Fraud means dishonestly obtaining a benefit, or causing a loss, by deception or other means. Fraud prevents public money being used for its intended purpose.  

CCS fraud is the dishonest administration of CCS.  

CCS fraud may also involve corrupt conduct. Corrupt conduct is when someone tries to influence a public official to act unfairly or dishonestly, so they can commit fraud against CCS. For matters involving corrupt conduct, please visit How to report fraud and corruption.

CCS is the main way the Australian Government helps families with child care fees. It is generally paid to providers who pass it on to families as a fee reduction.  

To get CCS, providers and services must follow the rules in Family Assistance Law (FAL).  

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.  

You should report suspected CCS fraud as soon as possible. Do not investigate it yourself. 

To report concerns about the immediate safety of a child, contact your local police service.

What types of fraud can you report?

You can report any behaviour or activity that may indicate fraud or non-compliance with FAL requirements.

Below are examples of the types of activities we would like to hear about. This list is not exhaustive.  

These activities may undermine the integrity of CCS and pose risks to public funds.  

FAL obligationExamples of types of activities to report 
Absences
  • Attendances submitted when an educator or child is overseas.
  • Claiming false absences. 
Banned inducements and advertising
  • Offering banned incentives to secure child care enrolments (for example, cash, vouchers, gifts, electronic devices). 
Claiming CCS for types of care where CCS is not payable
  • Transport only sessions (that is, an educator only taking children to and from school).
  • Claiming CCS for ineligible activities (for example, sports, language classes, music lessons).
False or fraudulent documentation
  • Use of false or fraudulent documents to register providers or educators (for example, qualifications or police checks).  
  • Submission of fraudulent evidence for Additional Child Care Subsidy (ACCS) or additional absences (for example, medical certificates).
Fit and proper concerns about educators, child care staff or persons with management or control (PMC)
  • Criminal charges or convictions for violence, abuse or child-related offences.  
  • Past fraud or non-compliance with other government programs (for example, NDIS).  
  • Conflicts of interest that may affect rule-following (for example, ties between a PMC and a training provider).  
  • Behaviour or links that could damage the reputation of the child care sector.
Gap fees 
  • Waiving gap fees or providing free child care (except during a declared CCS emergency or where no CCS is claimed).
  • Child care services, providers or educators accepting or requesting cash payments. 
Rules for Family Day Care and In Home care providers caring for relatives 
  • Child swapping – when an educator (or their partner) receives CCS for their own child enrolled in a session of FDC or IHC on the same day that they themselves provided care for another child.  
  • Educators providing care to their own children.  
  • Educators providing care to relatives:  
  • in breach of the less than 50% rule for FDC, or  
  • without a recommendation of support from the IHC Support Agency.
Sessions of care 
  • Sessions of care being reported but not occurring.  
  • Sessions of care claimed by the wrong service – overlapping session.
Other integrity risks
  • Using complex setups to hide who controls a child care provider (for example, shadow directors).  
  • Restarting under a new name after being banned (phoenixing).  
  • Suspicious or unexplained money movements, business practices or organisational structures.  
  • Actions that avoid checks or exploit the system  
  • Corrupt behaviour (for example, bribing staff or parents to ignore rule-breaking).  
  • Any other dishonest or deceptive behaviours you believe has allowed a provider or personnel to intentionally and dishonestly gain a benefit.

How do you make a good fraud tip-off?

Provide as much information as you can. Useful information includes:  

  • a description of the fraud or non-compliance, including when, where, and how it happened  
  • information about the people, services or providers involved, including:  
    • names  
    • phone numbers  
    • street or postal addresses  
    • email addresses  
    • social media details  
    • customer reference numbers  
  • approximate financial value of the activity.  

You can also upload one document as supporting evidence when you submit a tip-off.  

How can you submit a fraud tip-off?

To submit a tip-off, use our online CCS fraud tip-off form. It is anonymous and only takes a few minutes to complete.  

Child Care Subsidy tip-off form

What happens after you submit a fraud tip-off?

We treat all tip-offs seriously. We review and evaluate each tip-off to:  

  • identify who is involved  
  • decide if we can investigate.  

We do not disclose the outcomes of tip-offs.  

We share information with other agencies to deal with suspected fraud, where appropriate and permitted by law. We also take part in joint-agency activities, like the Fraud Fusion Taskforce.  

Enforcement action  

We take enforcement action against providers and services who do not comply with FAL. Enforcement action can include:  

  • issuing infringement notices  
  • imposing conditions on provider or service CCS approval  
  • issuing a debt  
  • suspending or cancelling your CCS approval  
  • seeking civil penalty orders  
  • criminal prosecution.  

Read examples of previous cases of fraud and actions taken by the department.  

Read more about previous enforcement actions on the enforcement action register.

Reporting other issues

Complaints or disputes about CCS enrolments, payments, debts or balancing  

If you need support relating to your child’s enrolment, session reports or payments, discuss the matter directly with your child care service or provider.    

If your child care service or provider is unable to resolve the issue, you should contact Services Australia.  

Find out more about CCS on the Services Australia website.    

Child safety concerns  

If you are concerned about a child’s privacy or safety, or suspect a child or young person is at risk of harm, abuse or neglect, contact your state or territory child protection agency.  

Child care quality and safety  

State and territory regulators administer the National Quality Framework (NQF) for Centre Based Day Care, Family Day Care and Outside School Hours Care. Please contact the regulator in your state or territory if you have a concern that relates to:  

  • risks to the health, safety or wellbeing of children at a service  
  • education and developmental outcomes for children  
  • quality improvements in education and care services.  

We regulate a small number of services which are out of scope of the NQF, including:  

  • some Community Child Care Fund restricted (CCCFR) services  
  • In Home Care (IHC) services.  

Quality and safety concerns relating to IHC and CCCFR services should be reported via our online complaint form. Please visit the Family Assistance Law Quality and Safety Regulation page for more information.  

Reporting other types of fraud  

For information on how to report other types of fraud including Centrelink, Medicare, child support, schools, vocational education and other programs, visit how to report fraud.  

Other issues  

If your issue remains unresolved, complete an online contact form.  

Online contact form  

Your privacy

Your personal information is protected by law, including under the Privacy Act 1988 (Privacy Act).  

Read our privacy policy for more information.