What to do if you receive a compliance notice

When an early childhood education and care (ECEC) provider is issued a compliance notice, it signals that the Department of Education believes there has been non‑compliance under the Family Assistance Law (FAL) or associated regulations. Understanding what a notice means, how to respond, and your obligations is essential for maintaining provider status, funding, and trust. This article lays out what providers need to know and do.

What is a compliance notice

• A compliance notice is a formal document from the Department under FAL that requires you to remedy certain identified non‑compliances. It may call for information, changes in practice, or other steps to come into line with legal obligations.
• Non‑compliance could relate to record keeping, reporting, attendance, fee reductions, staff checks, etc. Department of Education+2Department of Education+2

Why you may receive one

You may receive a compliance notice if:

1. The Department believes you have failed to meet one or more obligations under FAL.
2. There is missing or incorrect documentation or reporting.
3. Issues in care provision, entitlements or subsidy conditions are not adhered to.
4. Matters discovered during audits, investigations, or following a tip‑off.

Your obligations once you receive a notice

• Read the notice carefully. It will detail what is required, timeframes, what documents or information must be provided or what corrective actions to take. 
• Comply within the timeframe. For example, for “section 158” or “section 67FH” notices (legal tools to require documents, records or information), you usually have 14 days to respond. Failure to comply can have serious legal consequences. 
• Provide accurate and complete information. Do not redact or withhold required documents, unless advised that certain legality permits. If you believe there is ambiguity about what is required, seek clarification from the issuing officer. 
• Seek help if needed. If compliance is difficult (e.g. due to illness, loss of records etc.), or if you believe the notice is unclear or unreasonable, contact the Department’s officer who issued the notice. Legal or professional advice may also be considered. 

Potential consequences of non‑compliance

Failing to respond appropriately, or refusing or failing to comply with a compliance notice, can trigger enforcement actions, which may include:

• Infringement notices (fines) 
• Suspension or cancellation of provider approval to access Child Care Subsidy (CCS) or other government support 
• Other enforcement action under law, including possibly prosecution in severe cases. 

Best practices for responding

To ensure the best possible outcome when you receive a compliance notice:

1. Act immediately. Even if you believe you can resolve the issue, delays may worsen the situation.
2. Document everything. Keep a clear audit trail of your response: when you received the notice, when you responded, what you submitted, who you communicated with.
3. Engage your team. Make sure relevant staff understand the compliance issue and what steps are needed to resolve it.
4. Review internal practices. Use the compliance notice as an opportunity to audit other areas of your operations to prevent future notices.

Why compliance notices matter

• They are central to preserving the integrity of the Child Care Subsidy (CCS) system. 
• They help protect children’s safety, health and wellbeing by enforcing minimum standards.
• Maintaining compliance reduces risk of more serious consequences, including reputational risk, financial penalties, or government enforcement actions.

Supporting resources

Providers may wish to consult:

• Department of Education materials on FAL obligations, compliance and enforcement, specifically section 158 and  67FH of the notice guidance.
• Contact the issuing officer if you need more information or believe you are unable to comply with anything in the notice.
• Legal or professional advice if the notice is complex or you believe it is unjustified.

Receiving a compliance notice is serious, but it also provides a clear pathway back to compliance. By responding promptly, understanding your obligations, and using the opportunity to strengthen internal systems, Approved Providers can mitigate risks and continue to meet obligations under the Family Assistance Law and National Quality Framework. Ensuring transparency and responsiveness is both a legal requirement and a professional responsibility to the children and families served.