From 1 January 2026, Family Day Care (FDC) and In Home Care (IHC) providers must collect Child Care Subsidy (CCS) gap fees directly from families.
This means that educators in these services are no longer able to collect the gap fee themselves on behalf of providers.
All gap fees must be paid by electronic funds transfer (EFT) to a provider’s nominated bank account or via the provider’s nominated online payment system. If exceptional circumstances apply to an FDC or IHC service, the provider can apply for an exception.
This change will strengthen the sector by:
- ensuring CCS is administered correctly and gap fees are paid as required
- allowing educators to focus on providing education and care
- giving families, governments and regulators greater confidence in the sector’s viability.