Family day care service investigated over alleged subsidy claims

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Fiona Alston

Nov 05, 2026

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A Sydney-based family day care service is being investigated over suspected Child Care Subsidy claims for care not provided or overstated, according to a joint release involving the Australian Federal Police. Investigators are examining allegedly false attendance claims, inflated care hours and other irregular claiming patterns.

The family day care service received approximately $4 million in CCS payments since January 2024. That figure represents total payments received, rather than an established fraud amount.

Under Operation Fortis-Hailstorm, investigators executed three search warrants on 24 September, seizing six electronic devices and five cloud-based accounts. The investigation was disclosed on 4 November; the service has not been named, no arrests have been made and inquiries remain ongoing.

A Department of Education spokesperson said accurate claims protect funding intended for families. “Ensuring providers correctly claim Child Care Subsidy protects the integrity of the early childhood education and care sector,” the spokesperson said.

Reporting suspected subsidy fraud

The department accepts anonymous reports of suspected CCS fraud involving providers, services or employees. It asks people to report concerns promptly and advises them not to investigate suspected fraud themselves.

Reports can include what happened, when and where it occurred, the people or services involved and the approximate financial value.

The department evaluates tip-offs and may share information with other agencies where permitted by law. It does not disclose the outcomes of individual tip-offs

Read the joint announcement on the NDIS website or the Australian Federal Police website.

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