Incentives Offered By Early Childhood Providers To Families Will Change From 2023

Early childhood education and care providers may offer only certain types of incentives from 1 January 2023 to secure a child's enrollment.

From January, incentives that are financial or not directly associated with the quality or provision of education or care services will not be allowed.

Some examples of inducements not allowed may include:

• cash or vouchers
• iPads, tablets or other electronic devices
• other gifts.

Discounted or free care is not affected by this ban and may still be offered. However, fee discounts must be reported correctly if any CCS is being claimed.

You can still advertise your service to prospective families and offer free site visits or trial periods. You may also issue marketing merchandise to the value of $30 per complying written arrangement.

By 1 January 2023, you must:

• stop offering inducements that are not allowed
• ensure any services or educators under your approval stop offering inducements that are not allowed
• update your marketing material, both printed and online, to remove incentives not allowed.

The measure is part of the Australian Government's commitment to improving the transparency of childcare fees. It supports a fairer market across the sector.

Action will be taken against providers that continue to offer incentives not permitted under the law.

This could include:

• putting conditions on your approval
• issuing an infringement notice and penalty
• suspending or cancelling your approval.

For more information: Department Of Education