Payment of fees policy
Last reviewed: 8 November 2026. Checked against regulations 168, 171 and 172 of the Education and Care Services National Regulations and the Department of Education’s provider obligations guidance on 8 November 2026. This is a guide to what the policy should cover, not financial or legal advice.
Quick answer
Regulation 168(2)(n) requires every education and care service to have policies and procedures on payment of fees and provision of a statement of fees charged. Parents must be told at least 14 days before any change that will affect the fees charged or how fees are collected (regulation 172(2)). Services that administer Child Care Subsidy also have Family Assistance Law duties that the policy should reflect: collecting the gap fee electronically, issuing fortnightly statements of entitlement and passing on CCS as a fee reduction.
What the National Regulations require, the Child Care Subsidy rules that sit alongside them, and a checklist of what a fees policy should cover.
What the National Regulations require
- Regulation 168(2)(n): policies and procedures on the payment of fees and the provision of a statement of fees charged by the service.
- Regulation 172(2): parents of enrolled children must be notified at least 14 days before any change that will affect the fees charged or the way fees are collected. Unlike other policy changes under regulation 172(1), this notice applies to every fee change, not only those with a significant impact.
- Regulation 171: current copies of the policies must be readily accessible to staff and available for inspection at the premises whenever the service is operating, or otherwise on request.
The National Regulations do not set fee amounts, payment methods or debt rules. Those are business decisions for the provider, subject to Family Assistance Law if the service administers Child Care Subsidy, and to general consumer law.
Child Care Subsidy obligations to reflect in the policy
These come from Family Assistance Law, not the National Regulations, and apply to providers approved to administer CCS:
- Gap fees collected electronically: providers must take all reasonable steps to collect the gap fee (the difference between the fee and the family’s CCS) directly from families by electronic funds transfer. Limited exceptions exist, for example where a family reasonably fears that paying by EFT would put them at risk of family or domestic violence. See the department’s gap fee guidance.
- Family day care and in home care: since 1 January 2026, providers must collect gap fees directly from families; educators can no longer collect them on the provider’s behalf.
- Statements of entitlement: providers must give families who get CCS a statement of entitlement every fortnight.
- Passing on CCS: CCS paid to the provider must be passed on to the family as a fee reduction within 14 days. See payments and fees.
- Fee reporting: providers report their fee information to the government, which publishes it on StartingBlocks.gov.au.
What a fees policy should cover
- Fee schedule: daily or session fees, what they include (for example meals, nappies, excursions), and any extra charges such as late collection fees.
- Statement of fees charged: how and how often families receive a statement of the fees charged, as regulation 168(2)(n) requires, alongside CCS statements of entitlement.
- Payment methods and timing: accepted EFT methods, when fees are due, and payment plans (which for the gap fee must still be paid by EFT and recorded).
- Absences and public holidays: when fees are charged for days a child does not attend, and how CCS absence rules affect what the family pays.
- Fee changes: how families receive at least 14 days’ written notice under regulation 172(2).
- Overdue fees: reminders, payment arrangements, and the steps before care is suspended or ended, applied consistently and with the child’s best interests in mind.
- Notice of withdrawal: the notice period families must give to end an enrolment and how fees apply during it.
- Hardship and complaints: who families contact about fee difficulties or disputes, linking to the complaints policy.
Common gaps
- Fee increases announced with less than 14 days’ notice, or only by a noticeboard sign families may not see.
- A policy that covers CCS but says nothing about the statement of fees charged.
- Cash gap-fee payments accepted without an approved exception.
- Overdue-fee steps applied differently from family to family.
Frequently asked questions
Is a fees policy required in childcare?
Yes. Regulation 168(2)(n) requires policies and procedures on payment of fees and provision of a statement of fees charged by the service.
How much notice must a childcare service give before increasing fees?
At least 14 days. Regulation 172(2) requires parents of enrolled children to be notified at least 14 days before any change that will affect the fees charged or the way fees are collected.
Can families pay the childcare gap fee in cash?
Generally no. Under Family Assistance Law, providers must take all reasonable steps to collect the gap fee electronically. Limited exceptions apply, such as where a family reasonably fears that paying by EFT would put them at risk of family or domestic violence.
How often must families get a statement of entitlement?
Every fortnight, for families who receive Child Care Subsidy.
Can family day care educators collect the gap fee?
No. Since 1 January 2026, family day care and in home care providers must collect gap fees directly from families.
Ask the question in your own words
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.