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FAQs

What is Direct Gap Fee Collection?

Direct Gap Fee Collection refers to the process where families pay the out-of-pocket (gap) fee directly to the In Home Care Provider, while the Child Care Subsidy (CCS) portion is paid to the service by the government.

As part of the Direct Gap Fee Collection requirement, In Home Care providers will be responsible for the direct collection of Child Care Subsidy (CCS) gap fees. This means In Home Care educators will no longer be able to collect gap fees from families on behalf of the provider.

When do services need to transition to Direct Gap Fee Collection?

Services must transition to the Direct Gap Fee Collection model by 1 January 2026 to remain compliant with CCS funding requirements.

What happens if a service does not transition to Direct Gap Fee Collection by 1 January 2026?

Services that fail to comply with the new requirement may risk losing their CCS approval, which could impact their ability to operate.

Why has Direct Gap Fee Collection been introduced?

This approach ensures compliance with government regulations, prevents fraudulent claims, and increases financial transparency.

Is Direct Gap Fee Collection mandatory for all In Home Care services?

Yes, services must comply with government guidelines regarding gap fee collection to maintain CCS eligibility.

Can services accept cash payments for the gap fee?

No, cash payments are not allowed for gap fee collection under the compliance rules to ensure traceability and financial transparency.

What documentation should services keep regarding gap fee payments?

Services should maintain records of invoices, receipts, payment confirmations, and any correspondence related to fee collection for auditing purposes.

How will compliance with Direct Gap Fee Collection be monitored?

The Department of Education and Services Australia may conduct audits and require services to provide financial records proving that families are paying the correct gap fee.

When do services need to transition to Direct Gap Fee Collection?

Services must transition to the Direct Gap Feel Collection model by 1 January 2026 to ensure compliance with the Family Assistance Law and Child Care Subsidy requirements.