You must deduct the contribution from the total session fee when managing other third-party payments and discounts. The family’s CCS percentage will then be applied to the reduced session fee. Reporting of third-party payments and discounts in session reports is voluntary unless they are prescribed discounts.
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From 7 July 2025, reporting of non-prescribed provider discounts in session reports will be voluntary. This includes third party payments and provider discounts that reduce CCS entitlement, including:
- employer subsidies
- enrolment incentives.
What are the rules?
You must deduct the contribution from the total session fee before you report the discount. The family’s CCS percentage will then be applied to the reduced session fee.
Your statement of entitlement should include details of discounts. You may wish to talk to your third-party software provider on the best way to do this.
Applying other third-party payments and discounts
The following examples show you how to apply different types of third-party payments and discounts.
Non-prescribed discounts include:
- provider loyalty discount or enrolment incentives for families
- provider discounts for administration staff
- fees paid by employers
- fees paid by an Adult Migrant English Program service provider.
Provider loyalty discount
Your service charges $100 for a session of care.
A family at your service has a CCS percentage of 60%. Normally, the family would receive $60 in CCS and pay a gap fee of $40 per session.
| Description | Amount |
|---|---|
| Session of care fee | $100 |
| Family CCS (60%) | $60 |
| Gap fee | $40 |
However, your service offers a 10% loyalty discount which the family is eligible for. The contribution does not fall under the list of prescribed discounts.
As this is not a prescribed discount, you must deduct the 10% discount from the original session fee of $100 before reporting. The new session fee, which you must report, is $90.
The family’s CCS and gap fee will then be recalculated against the new session fee.
| Description | Amount |
|---|---|
| Original session of care fee | $100 |
| Provider discount | $10 |
| Correct fee to report | $90 |
| Family CCS (60%) | $54 |
| Gap fee | $36 |
A family salary sacrifices part of their fees
Your service charges $100 for a session of care.
A family at your service has a CCS percentage of 85%. Normally, the family would receive $85 in CCS and pay a gap fee of $15 per session.
| Description | Amount |
|---|---|
| Session of care fee | $100 |
| Family CCS (85%) | $85 |
| Gap fee | $15 |
The family salary sacrifices $15 to their child care fees through their employer.
You must deduct $15 from the original session fee before reporting. This is because salary sacrificing is not a prescribed third-party payment. The new session fee, which you must report, is $85.
The family’s CCS and gap fee will then be recalculated against the new session fee.
| Description | Amount |
|---|---|
| Original session of care fee | $100 |
| Salary sacrifice amount | $15 |
| Correct fee to report | $85 |
| Family CCS (85%) | $72.25 |
| Gap fee | $12.75 |
A charity pays for some of a family’s fee
Your service charges $100 for a session of care.
A family at your service has a CCS percentage of 80%. Normally, the family would receive $80 in CCS and pay a gap fee of $20 per session.
| Description | Amount |
|---|---|
| Session of care fee | $100 |
| Family CCS (60%) | $80 |
| Gap fee | $20 |
However, a charity offers to pay for 50% of your fees. The contribution does not fall under the list of prescribed discounts.
As this is not a prescribed discount, you must deduct the 50% discount from the original session fee of $100 before reporting. The new session fee, which you must report, is $50.
The family’s CCS and gap fee will then be recalculated against the new session fee.
| Description | Amount |
|---|---|
| Original session of care fee | $100 |
| Charity payment | $50 |
| Correct fee to report | $50 |
| Family CCS (60%) | $40 |
| Gap fee | $10 |
A third party pays all of a family’s fee
If third parties pay all of a family’s child care fees, the family will not be entitled to CCS.
This includes where:
- a third party pays for 100% of a family’s child care fees, such as a charity
- an employer pays for 100% of a family’s child care fees as part of an employment package, such as through salary sacrifice
- a family receives free child care through the Adult Migrant English Program.
You will still need to submit sessions to the CCS system for care provided where a third-party is liable for the fee.
Reporting other third-party payments and discounts in session reports
Reporting other third-party payments and discounts in session reports is voluntary. If you choose to report these payments or discounts, you can include:
- the type of discount
- the amount of the discount.
- a description of the discount.
Multiple discounts
You can report multiple discounts in session reports. You must make sure the total discounts do not exceed the full session fee amount when submitting the session report.
Read more about how to manage session reports.
Recording other third-party payments and discounts in statements of entitlement
You must issue a statement of entitlement to families who get CCS at your service.
If a discount has been applied for the session, you must include information about:
- the type of discount
- the amount of the discount.
Read more about statements of entitlement.