Since 3 August 2025, a service’s safety and quality record can cost it Child Care Subsidy funding, not just its state approval. The Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 amended the Family Assistance Law. It lets the Department of Education impose conditions on, suspend or cancel CCS approval, or refuse a new CCS service application, where a provider or service does not meet quality and safety considerations. Those considerations are NQS ratings and improvement over time, serious incidents, complaints, breaches of safety laws and compliance with CCS rules. The Act also gives authorised officers powers to make unannounced visits and widens what the Department can publish about compliance action.
How the 2025 federal law ties Child Care Subsidy approval to a service’s safety and quality record, what the Department looks at, and what providers should do.
The Strengthening Regulation of Early Education Act 2025 received Royal Assent on 2 August 2025. It amends the A New Tax System (Family Assistance) (Administration) Act 1999, the law that governs approval to administer the Child Care Subsidy. Its provider quality and safety measures commenced on 3 August 2025. It works alongside, not instead of, the National Law: state and territory regulators still enforce the NQF, while the Department of Education decides who can administer CCS. The powers apply to every CCS-approved care type: centre-based day care, family day care, outside school hours care and in home care.
The Department’s provider guidelines say it works with state and territory regulators and considers:
| Consideration | Evidence a provider can point to |
|---|---|
| Commitment to safety and quality, measured against the NQS | Current rating, QIP, governance and child safe culture. See NQS ratings |
| Improvement over time | Ratings that rise, or Working Towards areas resolved, at the next assessment |
| Previous and current ratings and assessments, including conditions | The regulator’s record for each service |
| Serious incidents, complaints and breaches of safety laws | Timely notifications, root-cause fixes, and few repeat breaches. See most common breaches |
| Compliance with CCS rules | Accurate attendance, session reports and enrolment notices. See CCS provider obligations |
The guidelines rate each area as “performing well”, “of concern” (at risk of compliance action) or “falling short” (likely compliance action). They also say a single poor result may not lead to action, because each provider’s circumstances are considered.
The guidelines describe a proportionate approach that starts with engagement. Family Assistance Law already allowed immediate suspension or cancellation where children face imminent risk. The Act also widened the Department’s power to publicise compliance action. Families can now see more on StartingBlocks.gov.au, including regulatory visits, enforcement actions and conditions on services (Department of Education). See checking a centre’s compliance history.
Authorised officers have powers of entry for unannounced visits and spot checks. These check that CCS is being administered correctly, and officers can pass any safety concerns they see to the state regulator. They are separate from state regulator visits; see regulatory authority visits.
Yes. Since August 2025 the Department of Education can impose conditions on, suspend or cancel a provider's or service's CCS approval where quality and safety considerations are not met, under amendments made by the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025.
Commitment to safety and quality against the NQS, improvement over time, current and previous ratings and conditions, serious incidents, complaints and breaches of safety laws, and compliance with CCS rules.
No. State and territory regulators still administer the National Law and Regulations. The Department of Education controls approval to administer the Child Care Subsidy and works with those regulators.
All CCS-approved care types: centre-based day care, family day care, outside school hours care and in home care.
WIDEN Law answers National Quality Framework questions with inline citations to the National Law, the Regulations and the NQS, so you can check the source provision yourself.
14-day free trial, no card →This page is a research summary, not legal or compliance advice. It is written in our own words from the sources linked on the page; confirm the position with your regulatory authority before relying on it for a compliance decision.