Advertising and inducements: What early childhood providers need to know

The Australian Government Department of Education is reminding approved providers to review their marketing and enrolment practices to ensure they comply with the Child Care Subsidy (CCS) rules around advertising and prohibited inducements.

While providers are encouraged to promote their services and attract new families, certain incentives designed to influence enrolment decisions are prohibited under CCS legislation. Understanding the difference between acceptable marketing and prohibited inducements is essential to maintaining compliance and protecting the integrity of the subsidy system.

An inducement is something offered to encourage a family to enrol at, remain with or increase their use of a particular early childhood education and care service.

The Department advises that providers must not offer financial benefits or incentives that are unrelated to the delivery or quality of education and care.

Examples of prohibited inducements include:

• cash payments
• gift cards or vouchers
• electronic devices such as tablets or iPads
• other gifts or rewards intended to influence enrolment decisions.

The rules can also apply to incentives offered to existing families if they encourage another family to enrol or increase their use of care.

The Department makes it clear that providers can still advertise and market their services.

Permitted activities include:

• promoting the quality of education and care provided
• advertising vacancies and available enrolments
• offering free tours or orientation visits
• providing information about educational programs and service features
• offering fee discounts or free care where these are managed and reported correctly under CCS requirements.

The key consideration is whether the offer complies with CCS legislation and is accurately reflected in fee reporting.

Providers are encouraged to regularly review marketing campaigns, enrolment promotions and advertising material to ensure they remain compliant.

The rules are designed to ensure families choose services based on the quality of education and care rather than inappropriate financial incentives.

They also help maintain a level playing field across the sector by ensuring government funding is not used to create unfair competitive advantages.

Failure to comply with the advertising and inducement requirements may result in compliance action by the Department.

If providers, educators, families or members of the community become aware that a service may be offering prohibited inducements, concerns can be reported anonymously through the Australian Government's CCS fraud tip-off form,

The online form takes only a few minutes to complete and allows the Department to assess potential breaches and investigate where appropriate.

The Department has published detailed guidance explaining what providers can and cannot do when advertising their services, including examples of permitted and prohibited inducements.

Read the Department's full guidance on advertising and prohibited inducements here.

Report concerns through the anonymous CCS fraud tip-off form here.