$50 million in Commonwealth claims targeted during AFP‑coordinated week of action

In a significant and coordinated enforcement effort, the Australian Federal Police (AFP) and its partners have targeted more than $50 million in alleged fraudulent claims against Commonwealth programs, including the Child Care Subsidy (CCS). The operation is part of the Fraud Fusion Taskforce (FFT) and marks one of the largest national crack‑downs on government program fraud to date. 

The AFP, in collaboration with the FFT and the Australian Criminal Intelligence Commission (ACIC), executed 33 search warrants across four states under six individual operations, involving over 250 investigators. 

One key operation, dubbed Operation Banksia, focused on an alleged organised crime network in Western Sydney and Adelaide that purportedly claimed more than $40 million in funding from the National Disability Insurance Agency (NDIA) by submitting hundreds of false claims for services that were never delivered, some for participants who were incarcerated at the time. 

Another relevant session, particularly to the ECEC sector, involved an investigation in Western Australia, coded Operation Wolfsburg, concerning alleged fraudulent claims of over $2 million in CCS payments made to a family day‑care provider. 

While much of the media release focuses on fraud against the NDIA and other Commonwealth programs, the inclusion of CCS in one of these operations sends a strong signal to the ECEC sector that government funding mechanisms are under heightened scrutiny. Service providers must now view compliance, transparency and reporting obligations not just as administrative burdens, but as critical to protecting children, families and the integrity of the sector.

For early childhood services, the implications are clear: inflated hours, claims for non‑existent care, or misleading documentation may now trigger law‑enforcement action. The scale of the investigations and resources deployed signal that regulatory risk has escalated.

To align with the heightened risk environment, services may consider the following actions immediately:

1. Review your CCS claims practices
   ‑ Ensure that all attendance records, enrolments and claims reflect actual care delivered.
   ‑ Cross‑check your internal systems for accuracy and consistency; discrepancies can trigger audits or investigations.
2. Strengthen governance and documentation
   ‑ Maintain full records of staff supervision, trainee status, compliance with staff‑child ratio requirements, and service delivery.
   ‑ Providers of family day care or small services are not exempt; the WA case underlines that fraud risk applies across service types.
3. Embed a culture of transparency and accountability
   ‑ Train educators and administrators on the importance of accurate reporting and correct claim procedures.
   ‑ Establish whistle‑blowing protocols and encourage staff to report irregularities internally without fear of reprisal.
4. Engage with regulators proactively
   ‑ Keep abreast of policy updates from the Department of Education and other regulatory bodies regarding CCS, subsidy rules, and compliance expectations.
   ‑ Be prepared to respond to unannounced inspections or investigations; have records easily accessible and verified.

The AFP’s operation demonstrates that no program is immune from organised fraud. For the early childhood sector, entrusted with children’s learning, care and wellbeing, this is a moment to reaffirm commitment to ethical practice and public trust. Financial integrity is just one dimension of service quality; robust governance, accurate reporting and transparency are foundational to fulfilling duty of care obligations.

Providers who treat compliance as a strategic priority rather than an administrative requirement will be better positioned to navigate the evolving regulatory landscape. As the sector prepares for the years ahead, investment in strong systems, ongoing monitoring and a culture of accountability will protect services, children and families alike.

For more detail on the AFP media release and the broader national operation, see the original release on the AFP website.