Strengthening safety through Child Care Subsidy

Quality and safety are paramount considerations when we deliver Child Care Subsidy (CCS). To get CCS, providers and services must deliver safe and high-quality education and care (ECEC).

On this page:

About safety and CCS

Early childhood education and care (ECEC) providers and services must be approved to administer CCS.

On 31 July 2025, the Australian Government passed legislation to ensure quality and safety are paramount considerations when we:

  • assess applications for CCS approval
  • allow ongoing CCS approval.

The legislation also gives the Commonwealth powers to:

  • make decisions about a provider’s approval based on its health and safety record
  • issue notices to services not meeting National Quality Standard (NQS)
  • conduct unannounced site visits
  • publish provider and service non-compliance information.

These legislative amendments make it clear that the Government expects all CCS-approved providers and services to be providing high-quality and safe ECEC as a condition of gaining and maintaining approval to administer the CCS.

CCS approval

To deliver ECEC, providers must gain 2 types of approval. You need approval from:

  • Your state or territory government. This deems you suitable to ensure the health, safety, wellbeing and educational outcomes of children under National Law.
  • The Australian Government. This deems you suitable to administer CCS under Family Assistance Law (FAL).

When we assess whether you are suitable to administer CCS under FAL, we consider:

  • your demonstrated commitment to the provision of high-quality ECEC
  • previous and current quality ratings against the NQS
  • any serious incidents
  • any conditions placed on you or your service in relation to quality and safety
  • your record of non-compliance with FAL
  • your record of non-compliance with Commonwealth, state or territory laws relating to quality and safety
  • whether your quality and safety record has improved over time, and the extent of improvement
  • other matters relating to quality and safety.

Where there is an imminent risk to a child's health or safety, a provider's CCS approval can be:

  • refused
  • suspended
  • cancelled
  • have conditions placed on it.

This can be done by us under FAL, or by state and territory regulators under National Law.

Find out more about CCS approval

Notices and site visits

We issue notices to providers and services that have a quality rating of ‘Working Towards’ or below under the NQS. These notices: 

  • explain the reason for the notice
  • give detailed information about compliance actions we’re taking
  • provide options and timelines for you to achieve a ‘Meeting’ or above NQS quality rating
  • provide direction regarding your advice to families.

Read more about notices

We may also send authorised officers to conduct unannounced site visits and compliance checks to:

  • check that CCS is being administered correctly
  • report quality and safety concerns to state and territory regulators.

Enforcement action register

We publish FAL non-compliance information about providers and services on our Enforcement Action Register

The register records:

  • provider name
  • location
  • service type
  • type of sanction
  • conditions of approval or grounds for sanction
  • date of effect.

Self-assessment

The following information will help you self-assess whether you are likely to be subject to compliance action.

Performing well: no major issues identified. Provider follows rules and responds to problems.
⚠️Of concern: some repeated issues. Provider tries to cooperate, but problems persist.
Falling short: serious or ongoing breaches. Provider may not cooperate or is subject to compliance action.

Commitment to safety and quality by meeting the NQS

Most services meet or exceed national standards.

Providers actively improve quality, update Quality Improvement Plans every 6 months, and involve staff in making improvements.

⚠️Many services meet required standards, but improvement efforts are inconsistent or slow.
Quality Improvement Plans may not be updated regularly.

Some services meet NQS standards. 

Frequent leadership changes and repeated safety issues.

Plans not updated regularly.

Improvement in NQS ratings over time

Quality improves or stays high. Fewer incidents. Conditions are lifted. Improvements are lasting.
⚠️Quality ratings drop. More safety issues. Some improvements, but not consistent.
Quality Ratings stay low. Serious problems continue. No signs of lasting improvement.

Previous and current NQS quality rating, including conditions imposed

Services are ‘Meeting NQS’ or above and have few issues. Any problems were fixed and improvements lasted.

No current conditions, or past ones were addressed.

⚠️

Some services have had repeated issues or been rated ‘Working Towards’ the NQS or below. Problems may still be unresolved.

Some conditions still active or not fully addressed. May show slow or limited improvement.

Many services have been rated ‘Working Towards’ the NQS or below over time. Serious problems keep happening and are not being fixed.

Many services have ongoing conditions. Provider may have been suspended for not fixing problems.

Serious incidents, complaints and breaches of safety laws

Very few serious incidents and complaints (relating to safety). Issues are reported and managed properly.

Few breaches, provider responds well and improves.

⚠️

Moderate number of incidents. Some complaints across multiple services. May show signs of declining quality.

Moderate number of complaints. Same issues appear across several services.

Moderate breaches, responses may be slow or incomplete.

High number of serious incidents. Problems are widespread and not being resolved. No incident reports for years may also be a concern.

Many complaints, often about serious issues, across multiple services.

Many breaches, provider fails to act or improve.

Compliance with Child Care Subsidy rules

No recent breaches. Provider takes responsibility and fixes issues quickly.
⚠️Some breaches, provider may not fully understand or follow rules.
Serious or repeated breaches. Provider shows no accountability or proper governance.

Support

Family Assistance Law

This website provides comprehensive information and education on Child Care Subsidy, including:

National Law

We encourage you to review your NQS rating and:

Factsheet

View a factsheet covering the July 2025 legislative changes.