Families must pay gap fees by electronic means only from July

From 1 July, families must pay their gap fee using electronic means. The gap fee is the co-contribution families make to their childcare fees, and is the difference between the provider’s fee and the Child Care Subsidy (CCS) amount. 

 

While 98 per cent of families already use the electronic funds transfer (EFT) methods available, the changes will make this a requirement, and will help the Department of Education to protect CCS against fraud and non-compliance.

 

The Department will audit this measure from 1 July, checking EFT payments against provider, service or educator bank statements and receipts as well as any relevant reports if a service uses third-party software.

 

The Department may also seek this information using a section 158 notice. A person with management or control of the provider (PMC) must respond to this notice.

 

Compliance action may be undertaken the following issues arise:

 

• A service fails to comply with the new requirements
• A service does not respond to a section 158 notice, or
• PMC details are not correct in the Child Care Subsidy System.

 

Compliance action could include:

 

• putting conditions on service approval
• issuing an infringement
• suspending or cancelling provider approval.

 

Information and data obtained through audits will be shared with the Australian Taxation Office. This will ensure providers getting government payments are meeting their tax and superannuation obligations.

 

Learn more on the Department’s website.