Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025

Administered by Department of Education

Legislation au F2025L01611 Rules Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Issued by the authority of the Minister for Education

A New Tax System (Family Assistance) Act 1999

Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025

AUTHORITY

The Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025 (Amendment Rules) are made under subsection 85GB(1) of the A New Tax System (Family Assistance) Act 1999 (Family Assistance Act) as construed in accordance with subsection 33(3) of the Acts Interpretation Act 1901 (Acts Interpretation Act).

Under subsection 33(3) of the Acts Interpretation Act, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by‑laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

PURPOSE AND OPERATION

The Child Care Subsidy Minister’s Rules 2017 (Principal Rules) prescribe matters that are required or permitted (or which are otherwise necessary or convenient) for the purposes of the Family Assistance Act or the A New Tax System (Family Assistance) (Administration) Act 1999 (Family Assistance Administration Act).

The Amendment Rules amend the Principal Rules to have the effect that:

         Obsolete provisions that currently provide a lower or equal subsidised hours result than the automatic result of 72 hours per fortnight under the Early Childhood Education and Care (Three Day Guarantee) Act 2025 (3 Day Guarantee Act), or that are not consistent with the policy intent of the Three Day Guarantee (3 Day Guarantee) measure are removed or amended;

         Terminology is amended to be consistent with the terminology changes in the 3 Day Guarantee Act;

         Certain requirements relating to the In Home Care (IHC) Program currently set out in the IHC National Guidelines are reflected in the Principal Rules;

         ‘Serious incident’ is defined for the purposes of section 194EA of the Family Assistance Administration Act, and corresponding consequential changes are made to the Principal Rules;

         A minor technical amendment is made to clarify the meaning of ‘ceases to operate’;

         Participants in the Intensive Early Childhood Education and Care (ECEC) Model Trial (the Trial) overseen by Parkville Institute Ltd may continue to be eligible for Additional Child Care Subsidy (ACCS) (child wellbeing) until 30 June 2027, an extension from the current end date of 30 June 2026;

         The period designating State and Territory preschool payments as prescribed payments for determining the hourly session fee charged to families for sessions of care is extended until 31 December 2027. Prescribed payments allow a family’s co-contribution, or gap fee, to be reduced or removed without affecting their Child Care Subsidy (CCS) entitlement;

         Changes to the Principal Rules are made in accordance with changes to the Family Assistance Administration Act following the passage of the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 (the Strengthening Regulation Act), providing for an additional exception to the direct gap fee collection requirement for Family Day Care (FDC) and IHC providers where an individual reasonably fears they will be at risk of family or domestic violence if the exception is not granted.

Three Day Guarantee Measures

The 3 Day Guarantee measures amend the Principal Rules to ensure consistency with the provisions in the 3 Day Guarantee Act. The 3 Day Guarantee Act commences on 1 January 2026.

The 3 Day Guarantee is part of the next steps in building a universal ECEC system and helps ensure more children are school-ready, while providing targeted cost-of-living relief for families. The measure removes the activity test and entitles all eligible families to a minimum of 72 hours per fortnight of CCS, while allowing families to tailor their child care usage based on individual needs and circumstances.

Individuals will be entitled to a higher subsidy of 100 hours per fortnight if they:

  • have more than 48 hours of recognised participation (for example, paid work, study, volunteering) per fortnight;
  • care for an Aboriginal or Torres Strait Islander child or children; or
  • are eligible for a Minister’s rules result under Part 3, Division 4 of the Principal Rules.

Recognised participation is defined in clause 12(2) of Schedule 2 of the Family Assistance Act, and includes an activity prescribed by the Principal Rules. Clause 14(1) of Schedule 2 of the Family Assistance Act defines ‘Minister’s rules result’ as being a result worked out by a method prescribed by the Principal Rules. The provisions in the Principal Rules previously prescribed for these purposes need to be updated to ensure consistency with amendments made under the 3 Day Guarantee Act.

In Home Care Measures

The IHC measures amend the Principal Rules to reflect in the Principal Rules themselves central aspects of the current operation of the IHC Program and requirements currently set out in the IHC National Guidelines. The measures do not generally introduce new requirements for approved providers of IHC services or alter requirements relating to individuals’ eligibility for CCS for sessions of care provided by IHC services. Rather they are intended to clarify existing processes and requirements and will, therefore, increase transparency and certainty for approved providers and families accessing IHC services.

Specifically, the IHC measures amend the Principal Rules to:

  • clarify in section 8AA one of the requirements in relation to IHC services that must be met for an individual to be eligible for CCS for a session of care provided by an approved child care service to a child;
  • specify in section 45 additional criteria for satisfying the service eligibility rules in section 194D of the Family Assistance Administration Act where a provider applies for approval in respect of an IHC service;
  • include in section 48A additional conditions for continued approval for providers in respect of IHC services – these relate to the development and provision of education programs, the needs for sleep and rest of children, home safety assessments and checks, and engagement with IHC Support Agencies;
  • introduce a new section 48AA to specify additional conditions for continued approval for providers in respect of IHC services, focusing on requirements for IHC educators – these include minimum age requirements, citizenship and residency requirements, and requirements relating to training and qualifications;
  • specify in section 49B a wider range of matters that the Secretary must take into account in working out the number of places to be allocated to an IHC service, or the number of allocated places to be reduced.

Definition of ‘Serious Incident’

Section 194EA of the Family Assistance Administration Act (inserted into the Act by the Strengthening Regulation Act) sets out quality and safety considerations for approved child care providers and services which include having regard to notifications and complaints about ‘serious incidents’.

The Amendment Rules prescribe the definition of ‘serious incident’ for the purposes of subsection 194EA(2). For providers approved under the Education and Care Services National Law, the Amendment Rules apply the same definition prescribed by the Education and Care Services National Regulations. For other providers, the definition of ‘serious incident’ largely aligns with the definition prescribed by the Education and Care Services National Regulations. This will ensure the meaning of ‘serious incident’ is broadly consistent across jurisdictions.

The Amendment Rules also prescribe additional notification requirements to apply to those providers not approved under the Education and Care Services National Law to more closely align with notification requirements under the Education and Care Services National Law. This includes having to notify the Secretary of incidents involving physical or sexual abuse of a child or children while being cared for by a service, or allegations involving physical or sexual abuse of a child or children while being cared for by a service.

Extension of ACCS (child wellbeing) for children enrolled at the Trial sites

The Amendment Rules amend the Principal Rules to extend the current end date for participants in the Intensive ECEC Model Trial to be eligible to access to the ACCS (child wellbeing) from 30 June 2026 to 30 June 2027. The Trial is designed to support vulnerable and First Nations children from birth to three years, bridging the gap to school readiness.  

The Principal Rules have the effect that children enrolled at a Trial site are eligible for ACCS (child wellbeing), and that ACCS determinations for these children may have effect for up to 52 weeks under paragraphs 10(i) and 11B(c) of the Principal Rules. However, these rules only have effect for the period between 1 July 2022 and 30 June 2026. The Amendment Rules will extend the end-date of this period to 30 June 2027, giving the Trial sites more time to deliver as close to three years of support as possible for more participants, and maintain access to ACCS (child wellbeing) for participants.

These amendments support the Trial by providing certainty for participants, minimising administrative requirements, and addressing disincentives to participation in the Trial. As risk factors are assessed at Trial entry, frequent reassessment is unnecessary.

Extension of Preschool Payment Arrangements

The Amendment Rules amend the Principal Rules to extend the period designating State and Territory preschool payments as prescribed payments for determining the hourly session fee charged to families for sessions of care. Prescribed payments allow a family’s co-contribution, or gap fee, to be reduced or removed without affecting their CCS entitlement. The Amendment Rules ensure that State and Territory preschool payments remain prescribed payments for a further two years, until 31 December 2027. 

The main type of prescribed payment accessed by families is the preschool payment. Under the Principal Rules, states and territories are permitted to support preschool delivery by reducing or removing the CCS gap fee for families for preschool programs provided in Centre Based Day Care (CBDC) settings.

The extension supports continued access to affordable preschool programs delivered in CBDC settings and maintains alignment with broader preschool funding arrangements across jurisdictions as part of the Preschool Reform Agreement (PRA) to the end of 2027.  The PRA is a joint national initiative between the Australian Government and all states and territories to strengthen preschool delivery, attendance and better prepare children for their first year of school.

Clarification of the Meaning ‘Ceases to Operate’

The Amendment Rules amend the Principal Rules to clarify the operation of section 7A of the Principal Rules, which defines when a provider is taken to have ceased operating for the purposes of cancellation under section 197H of the Family Assistance Administration Act. This is a technical amendment to correct a cross reference in section 7A and clarify that a provider who has been deregistered but subsequently re-registered is not automatically deemed to have continued operating.

Exceptions to direct gap fee collection

Following the passage of the Strengthening Regulation Act, and amendments to section 201B of the Family Assistance Administration Act, from 1 January 2026, all FDC and IHC providers will be required to collect CCS gap fees (the fee paid by families for a child care session after CCS is deducted) directly from families. A provider that uses a payment gateway service to collect CCS gap fees on their behalf may still do so as long as the fees are collected through Electronic Funds Transfer (EFT) or an exception has been granted.

FDC and IHC educators will no longer be able to collect gap fees on behalf of providers, unless granted an exception by the Secretary. Section 201B(1A) of the amended Administration Act prescribes the circumstances in which exceptions to the direct gap fee collection requirement in the Ministers Rules may be granted.

This amendment to the Principal Rules prescribes an additional circumstance in which an exception to the direct gap fee collection requirement for sessions of care provided by FDC and IHC providers may be granted. The exception will be available in the same circumstance as that currently in place for the EFT requirement – where the individual will be at risk of family or domestic violence if the exception is not granted.

This amendment is intended to ensure the policy is implemented safely and equitably, without placing vulnerable families at further risk.

COMMENCEMENT

Sections 1 to 4 of the Amendment Rules, and any other part of the instrument that does not have a specific commencement date provided for, will commence the day after the Amendment Rules are registered.

Schedule 1 to the Amendment Rules will commence at the same time as the Early Childhood Education and Care (Three Day Guarantee) Act 2025 commences.

Schedule 2 to the Amendment Rules will commence on 1 January 2026.

Parts 1 and 2 of Schedule 3 to the Amendment Rules will commence the day after the Amendment Rules are registered.

Part 2 of Schedule 3 to the Amendment Rules will commence at the same time as the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 commences.

CONSULTATION

The Department of Education (the department) has consulted with stakeholders in the ECEC sector through the Early Childhood Education and Care Reference Group (ECECRG) about all proposed amendments to the Principal Rules. Limited feedback was provided on these changes, but feedback received was largely supportive of the changes.

Specific consultation was undertaken in respect of IHC measures, and the extension of access to ACCS (child wellbeing) for the Trial (detailed below).

In Home Care measures

For the IHC measures contained in Schedule 2 of the Amendment Rules, the IHC sector was consulted on the proposed amendments, specifically the movement of IHC provider obligations from the IHC National Guidelines to the Principal Rules. Feedback from the IHC sector supported the inclusion of existing obligations in the Principal Rules to provide greater clarity and enforceability. Minor drafting adjustments were made to reflect sector input regarding practical implementation.

The department consulted with the Department of Home Affairs to confirm appropriate terminology for sections 48AA(2) and 48AA(3).

The Attorney-General's Department was consulted on reviewable decisions associated with the exemption from educator qualification requirements under subsections 48AA(4)–(9), to ensure the amendments are consistent with administrative law principles.

Extension of access to ACCS (child wellbeing) for children enrolled at the Trial sites

For the extension of access to ACCS (child wellbeing) for participants in the Trial as contained in Schedule 3, Part 2 of the Amendment Rules, the department undertook targeted consultation with the Parkville Institute Ltd (which also consulted directly with the Trial sites), the University of Melbourne and SNAICC – National Voice for our Children. All were supportive of the measure. The department also consulted with Australian Government stakeholders including the Department of Finance, the Department of Prime Minister and Cabinet, Services Australia and the Victorian Government.

Extension of Preschool Payment Arrangements

The department consulted with State and Territory governments, particularly those that offer prescribed preschool payments. They supported the extension and recommended it be progressed ahead of the new preschool agreement to give jurisdictions certainty for planning in 2026.

The department has also consulted with Services Australia to ensure the legislative, policy, and technical elements are aligned, enabling the feasible extension of the prescribed preschool payment period from 2025 to 2027.

 

 


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025

The Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025 (the Amendment Rules) are compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Child Care Subsidy Minister’s Rules 2017 (the Principal Rules) prescribe matters that are required or permitted (or which are otherwise necessary or convenient) for the purposes of the A New Tax System (Family Assistance) Act 1999 (Family Assistance Act) or the A New Tax System (Family Assistance) (Administration) Act 1999 (Family Assistance Administration Act).

The Amendment Rules amend the Principal Rules to have the effect that:

         Obsolete provisions that currently provide a lower or equal subsidised hours result than the automatic result of 72 hours per fortnight under the Early Childhood Education and Care (Three Day Guarantee) Act 2025 (3 Day Guarantee Act), or that are not consistent with the policy intent of the 3 Day Guarantee measure are removed or amended;

         Terminology is amended to be consistent with the terminology changes in the 3 Day Guarantee Act;

         Certain requirements relating to the In Home Care (IHC) Program currently set out in the In IHC National Guidelines are reflected in the Principal Rules;

         ‘Serious incident’ is defined for the purposes of section 194EA of the Family Assistance Administration Act, and corresponding consequential changes are made to the Principal Rules;

         A minor technical amendment is made to clarify the meaning of ‘ceases to operate’;

         Participants in the Intensive Early Childhood Education and Care (ECEC) Model Trial (the Trial) overseen by Parkville Institute Ltd may continue to be eligible for Additional Child Care Subsidy (ACCS) (child wellbeing) until 30 June 2027, an extension from the current end date of 30 June 2026;

         The period designating State and Territory preschool payments as prescribed payments for determining the hourly session fee charged to families for sessions of care is extended until 31 December 2027. Prescribed payments allow a family’s co-contribution, or gap fee, to be reduced or removed without affecting their Child Care Subsidy (CCS) entitlement;

         Changes to the Principal Rules are made in accordance with changes to the Family Assistance Administration Act following from the passage of the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 (the Strengthening Regulation Act), that provides an additional exception to the direct gap fee collection requirement for Family Day Care (FDC) and IHC providers.

Human rights implications

The Amendment Rules engage the following rights:

  1.       Article 3 of the Convention on the Rights of the Child (CRC), which recognises that in all actions concerning children, the best interests of the child shall be a primary consideration;
  2.       Article 18 of the CRC, which requires States Parties to take all appropriate measures to ensure that children of working parents have the right to benefit from child care services and facilities;
  3.       Article 19 of the CRC, which requires that appropriate legislative, administrative, social and educational measures be taken to protect children from all forms of physical or mental violence, injury or abuse, neglect or negligent treatment, maltreatment or exploitation, including sexual abuse, including social programmes to provide necessary support for the child and for those who have the care of the child;
  4.       Articles 2(c) and 3 of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW), which provides for the effective protection of women against acts of discrimination and ensures the full development and advancement of women; and
  5.       Article 17 of the International Covenant on Civil and Political Rights (ICCPR) and Article 16 of the CRC, which provide the right to protection against arbitrary and unlawful interferences with privacy, family and home.

Rights of Children

Article 3 of the CRC recognises that in all actions concerning children, including those undertaken by administrative authorities or legislative bodies, the best interests of the child shall be a primary consideration.

Article 18(2) of the CRC requires States Parties to render appropriate assistance to parents and legal guardians in the performance of their child-rearing responsibilities and to ensure the development of institutions, facilities and services for the care of children.

Article 19 of the CRC requires States Parties to take all appropriate legislative, administrative, social and educational measures to protect the child from all forms of physical or mental violence, injury or abuse, neglect or negligent treatment, maltreatment or exploitation including sexual abuse, while in the care of parents, legal guardians, or any other person who has the care of the child. Paragraph 2 states that these measures should include effective procedures for the establishment of social programmes to provide necessary support for the child.

The Amendment Rules support the above rights of parents and children by:

         Supporting provisions in the 3 Day Guarantee Act, which improve the accessibility and affordability of childcare by subsidising at least 72 hours of childcare per fortnight for every eligible family, regardless of their circumstances. This promotes the best interests of a child by ensuring that eligible children can access subsidised ECEC, particularly those experiencing disadvantage and vulnerability.

         Supporting provisions in the 3 Day Guarantee Act, which also facilitates access to an increased baseline entitlement to subsidised ECEC for all eligible families, including families with working parents. This means that, regardless of the number of hours an individual spends working, or on other activities, they can access a minimum of 72 hours of subsidised ECEC per fortnight, to ensure that children have the right to benefit from child care services and facilities.

         Ensuring that there are adequate quality and safety obligations on child care service providers who fall outside of the scope of the Education and Care Services National Law, promoting the best interests of the child and implementing measures to protect children from injury or abuse.

         Continuing to implement ACCS (child wellbeing) for children enrolled at selected Trial sites, and ensuring continuity of support for vulnerable children and families.

         Implementing an exception to the direct gap fee collection requirement for FDC and IHC services, in instances where an individual is facing domestic or family violence. This measure supports the best interests of the child by ensuring access to child care and providing necessary support to a child facing violence.

         Extending the period designating State and Territory preschool payments as prescribed payments for determining the hourly session fee charged to families for sessions of care. Prescribed payments allow a family’s co-contribution, or gap fee, to be reduced or removed without affecting their CCS entitlement. This supports the best interests of a child, and provides for continued, affordable access to ECEC for both parents and children.

Right to equality and non-discrimination

The CEDAW provides that in relation to discrimination against women, States Parties must:

         ensure the effective protection of women against acts of discrimination (Article 2(b)); and

         ensure the full development and advancement of women (Article 3).

Through implementing the 3 Day Guarantee Act measures, the Amendment Rules ensure improved accessibility and affordability of childcare by subsidising at least 72 hours of childcare per fortnight for every eligible family.

The Amendment Rules also facilitate continued access to ACCS (child wellbeing) at selected Trial sites to ensure access to ACCS for certain families, and also facilitate affordable preschool, and an exception to the direct gap fee collection in certain settings where an individual is facing domestic or family violence.

Maintaining access to affordable ECEC promotes the development and advancement of women by providing them with the opportunity to engage in work, study or training at their desired level. Having the freedom to participate in these activities is an important pathway out of violent relationships, promotes financial security, independence, creates community connection and increased self-esteem.

Right to privacy

Article 17 of the ICCPR and article 16 of the CRC requires that no one shall be subject to arbitrary or unlawful interference with privacy.

The Amendment Rules require child care service providers that are not subject to the National Law to notify the Secretary of certain matters, including details of a serious incident, and incidents or allegations of physical or sexual abuse of a child while being cared for at the child care service.

Any limitation on the right to privacy is reasonable and proportionate, given the objective is to promote child safety. Notification will allow the Secretary to take an appropriate regulatory response to issues of child safety in child care services.

Further, there are a number of safeguards in place in relation to that information that is collected and disclosed by the provider. This includes that the Privacy Act 1988 applies in relation to the management of information collected by the provider and the department. In addition, any information collected by the provider and provided to the Secretary will, once it is obtained and recorded by the Secretary, be subject to the confidentiality provisions in sections 161 to 168 of the Family Assistance Administration Act.

To the extent that the right to privacy is limited, the limitation is reasonable and proportionate and as such, this instrument is compatible with the right to privacy.

Conclusion

This instrument is compatible with human rights because it promotes the protection of human rights recognised under the CRC, CEDAW and ICCPR.

 

 

Minister for Education, the Hon Jason Clare MP

 

Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025

EXPLANATION OF PROVISIONS

Section 1: Name

  1.   This is a formal provision specifying the name of the instrument as the Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025 (Amendment Rules).

Section 2: Commencement

  1.   This section provides that:

         Sections 1 to 4 of the Amendment Rules, and any other part of the Amendment Rules not elsewhere covered by the table, commence the day after the Amendment Rules are registered.

         Schedule 1 to the Amendment Rules commences at the same time as the Early Childhood Education and Care (Three Day Guarantee) Act 2025 (3 Day Guarantee Act) commences.

         Schedule 2 to the Amendment Rules commences on 1 January 2026.

         Parts 1 and 2 of Schedule 3 to the Amendment Rules commence the day after the Amendment Rules are registered.

         Part 3 of Schedule 3 to the Amendment Rules commences at the same time as Part 5 of Schedule 1 to the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025 commences.

Section 3: Authority

  1.   This section provides that the Amendment Rules are made under the A New Tax System (Family Assistance) Act 1999 (Family Assistance Act). Subsection 85GB(1) allows the Minister to make rules required or permitted to be prescribed by the Family Assistance Act, or the A New Tax System (Family Assistance) (Administration) Act 1999 (Family Assistance Administration Act), or necessary or convenient to be prescribed for carrying out or giving effect to certain provisions of the Family Assistance Act and the Family Assistance Administration Act.

Section 4: Schedules

  1.   This section provides that the Child Care Subsidy Minister’s Rules 2017 (Principal Rules) are amended or repealed as set out in the applicable items in the Schedules to the Amendment Rules.

Schedule 1 – Three day guarantee amendments

Child Care Subsidy Minister’s Rules 2017

Items 1 and 18: Paragraph 17(b); Subsection 22(2) (note)

  1.   These items amend various provisions of the Principal Rules to replace activity test result with subsidised hours. This will achieve consistency with the amended terminology in the 3 Day Guarantee Act and essentially remove reference to terms associated with the activity test and replace it with terms associated with the 3 Day Guarantee.

Items 2, 7, 10, 11, 16, 22, 23, 26-34, 36, 37, 39, 41-45: Division 3 of Part 3 (heading); Subsection 19(1); Subsection 20(1); Subsection 21(1); Subsection 22(1); Subsection 23(2); Section 23A; Paragraph 25(1)(a); Paragraph 25(1)(d); Subsection 25(2); Subsection 25(3); Paragraph 26(1)(a); Subsection 26(1) (note); Subsection 26(2); Paragraph 27(1)(a); Subsections 27(2), (3), and (4); subsection 28(1) (note); Subsection 28(2); Subsections 29(2), (3), and (4); Paragraph 30(1)(a); Subsection 30(2); Subsection 30(2); Subsection 30(2) (examples 1 and 2); and Paragraph 32(a)

  1.   These items amend various provisions of the Principal Rules to replace recognised activity with recognised participation type. This will achieve consistency with the amended terminology in the 3 Day Guarantee Act and essentially remove reference to terms associated with the activity test and replace it with terms associated with the 3 Day Guarantee.

Items 3, 4, 6, 8, 12, 17, 19, 20, 24 and 40: Subsection 18(1); Subsection 18(2); Subdivision B of Division 3 or Part 3 (heading); Subsection 19(1); Subsection 21(1); Subsection 22(2); Subsection 22(2) (note); Subsection 22(3); Subdivision C of Division 3 of Part 3 (heading); Subdivision D of Division 3 of Part 3 (heading)

  1.   These items amend various provisions of the Principal Rules to replace activity or activities with participation type or participation types. This will achieve consistency with the amended terminology in the 3 Day Guarantee Act and essentially remove reference to terms associated with the activity test and replace it with terms associated with the 3 Day Guarantee.

Item 5: Paragraph 18(2)(d)

  1.   This item amends paragraph 18(2)(d) to make a terminology change and remove the use of the word activity, in line with the 3 Day Guarantee Act amendments.

Item 9: Subsection 19(2)

  1.   This item amends subsection 19(2) to make terminology changes and amend any uses of the terms recognised activity and activity.

Item 13: Paragraph 21(1)(c)

  1.   This item amends paragraph 21(1)(c) to remove the qualification that voluntary work in a school, preschool or centre-based care service must directly support the learning and development of the children at the school, preschool or service. This amendment simplifies the provision, removes some complexity that existed between the provision and the example, and aligns with the provision in paragraph 21(1)(b) where there is no qualification drafted to limit the scope or outcome of the other voluntary work.

Item 14: Subsection 21(1) (example)

  1.   This item amends the example within subsection 21(1) to remove reference to paragraph (b) as the example was not relevant to that subsection, and to expand on the previous examples, including removing reference to the term ‘activities’ and clarifying the scope of voluntary work within a school, preschool or service.

Item 21: Subsection 23(1)

  1.   This item amends subsection 23(1) to make terminology changes and amend any uses of the terms recognised activity and activity/activities.

Item 25: Section 24

  1.   This item repeals section 24 of the Principal Rules. This will mean, where an individual’s circumstances change, their entitlement to the changed subsidy amount will begin the fortnight after the change occurs.
  2.   For the purposes of an individual’s Child Care Subsidy (CCS) entitlement, subclause 12(7) of Schedule 2 of the Family Assistance Act requires that an increase in recognised participation is applied the fortnight after the fortnight in which the change in circumstance occurs. Section 24 makes it such that, when an individual commences or increases paid work, their CCS entitlement begins the fortnight prior to the CCS fortnight in which the change occurs.
  3.   When both provisions are applied together, the change to CCS entitlement applies in the same fortnight in which a person commences or increases their hours of paid work.
  4.   Section 24 was originally intended to incentivise workforce participation under the previous activity test. While encouraging workforce participation remains a core objective of the CCS, the 3 Day Guarantee renders the provision largely redundant due to the guaranteed baseline of subsidised hours.
  5.   Repealing section 24 will remove the complexity arising from its concurrent operation with subclause 12(7) of Schedule 2 to the Family Assistance Act. This ensures a simpler and more consistent approach to determining CCS entitlement across participation types and allows the application of subclause 12(7) alone ensuring a fairer, and more consistent system aligned with the 3 Day Guarantee objectives.

Items 35 and 38: Paragraph 28(1)(a) and Paragraph 29(1)(a)

  1.   Section 23A provides that an Australian course of study, as defined in the Tertiary Education Quality and Standards Agency Act 2011, is a recognised participation type. Australian courses of study include post-graduate Masters and Doctorate courses, which are not covered by the definition of ‘approved courses of study’ which is a recognised participation type as defined in paragraph 12(2)(c) of Schedule 2 of the Family Assistance Act.
  2.   Sections 28 and 29 have the effect that, for the purpose of an approved course of study, self-directed study and breaks in courses count towards hours of recognised participation. By contrast, it is not clear when section 23A applies and how an individual may engage in an Australian course of study for the purpose of CCS.
  3.   This item amends section sections 28 and 29 to extend the application of these provisions to Australian courses of study under section 23A.
  4.   This amendment addresses a drafting gap to ensure there is explanation of what it means to ‘engage in’ an Australian course of study, including the application of self-directed hours and course breaks to Australian courses of study.
  5.   This item also amends terminology in section 28 and 29 to be consistent with terminology in the 3 Day Guarantee Act.

Items 46 and 47: Section 38 and Subsection 39(4)

  1.   Sections 38 and 39 provide Minister’s rules results for those receiving specified benefits under the Social Security Act 1991 (Social Security Act).
  2.   The Minister’s rules results in these provisions are based on allowing individuals to combine their hours of recognised participation with their hours of caring or qualifying activities, as defined in the Principal Rules, to achieve the higher subsidy amount. For example, if an individual engages in 20 hours of caring activity and 40 hours of other recognised activity a Minister’s rules result of 100 will apply.
  3.   Item 46 amends section 38 of the Principal Rules to provide that if the combined hours of caring activity and recognised participation total over 48 hours per fortnight, there is a Minister’s rules result of 100 hours applied to the individual.
  4.   Item 47 amends subsection 39(4) of the Principal Rules to provide that if the combined hours of qualifying activity (time spent on meeting mutual obligations for the income support payment) and recognised participation total over 48 hours per fortnight, there is a Minister’s rules result of 100 hours.
  5.   These provisions have been amended to maintain the possibility of getting a Minister’s rules result of 100, but remove the possibility of getting Minister’s rules results of 72 or lower. This is because, following the 3 Day Guarantee Act amendments, the baseline subsidised hours result is 72 hours. Any Minister’s rules result that is 72 or lower becomes redundant because it is the default 3 Day Guarantee result that will apply.
  6.   This amendment simplifies both sections and still allows individuals receiving caring payments and other social security payments to receive a higher subsidy.
  7.   These items also amend terminology in section 38 and 39 to be consistent with terminology in the 3 Day Guarantee Act.

Item 48: Section 39A

  1.   This item repeals section 39A. The section is time-limited, and only applied for the period of 12 June 2023 to 9 June 2024.

Items 49 and 50: Section 39B and Section 40

  1.   These items repeal sections 39B and 40 as they will become redundant with the commencement of the 3 Day Guarantee Act. The Minister's rules result for this provision is 36 hours per fortnight which is less than the 3 Day Guarantee baseline amount.

Item 51: Subdivision C of Division 4 of Part 3

  1.   This item repeals Subdivision C of Division 4 of Part 3. The Subdivision is time-limited and only applied only for the period of 13 July 2020 to 4 April 2021.

Item 52: At the end of Part 6A

  1.   This item inserts an application provision into the Principal Rules. The application provision provides that the amendments made to the Principal Rules by Schedule 1 to the Amendment Rules will not apply until the start of the CCS fortnight that begins after the commencement of Schedule 1 to the Child Care Subsidy Amendment (Three Day Guarantee and Other Measures) Minister’s Rules 2025. In practice, this means that these amendments, along with the rest of the 3 Day Guarantee policy settings, will apply from 5 January 2026. It is not practicable for the amendments to have effect from when the Amendment Rules commence because this is partway through a CCS fortnight and an individual may use their subsidised hours as they wish over the course of a fortnight. Therefore, the application provision ensures that the changes apply to sessions of care provided from the start of the first CCS fortnight after commencement.

Schedule 2 – In home care amendments

Item 1 – Section 4 (definition of IHC Support Agency)

  1.   Item 1 repeals and substitutes the definition of ‘IHC Support Agency’ in section 4 of the Principal Rules. This amendment is consequential to the amendments in item 12 – that item has the effect of repealing subsection 49B(2) of the Principal Rules, which is referred to in the current definition in section 4. The new definition in section 4 is the same as the current definition in subsection 49B(2).

Item 2 – At the end of subparagraph 8AA(2)(b)(i)

  1.   Item 2 amends subparagraph 8AA(2)(b)(i) of the Principal Rules by adding the words ‘within the meaning of subsection (3)’ at the end of that subparagraph.
  2.   For the purposes of paragraph 85BA(1)(e) of the Family Assistance Act, section 8AA of the Principal Rules prescribes requirements in relation to in home care (IHC) services that must be met for an individual to be eligible for CCS for a session of care provided by an approved child care service to a child.
  3.   Under subparagraph 8AA(2)(b)(i), one such requirement is that the parents or carers of the child work non-standard or variable hours that are outside normal child care service hours.
  4.   The amendment in item 2 makes it clear that the term ‘normal child care service hours’ has the meaning set out in new subsection 8AA(3) (refer to item 3 below).

Item 3 – At the end of section 8AA

  1.   Item 3 adds a new subsection 8AA(3) at the end of section 8AA of the Principal Rules. New subsection 8AA(3) defines the term ‘normal child care service hours’ for the purposes of subparagraph 8AA(2)(b)(i) to mean weekdays from 6:30 am to 6:30 pm.
  2.   Together with the amendment in item 2, the purpose of the amendment in item 3 is to make it clear that, for an individual to be eligible for CCS for sessions of care provided by IHC services, the parents or carers of the child to whom a session of care is provided must work non-standard or variable hours outside weekdays from 6:30 am to 6:30 pm, in other words they must usually work weekdays 6:30 pm to 6:30 am and/or weekends, and this work pattern makes other approved child care types unsuitable or unavailable.

Item 4 – At the end of section 45

  1.   Item 4 adds a new subsection 45(5) at the end of section 45 of the Principal Rules.
  2.   Section 45 sets out additional criteria for satisfying the service eligibility rules, for the purposes of paragraph 194D(g) of the Family Assistance Administration Act. A child care service must satisfy the service eligibility rules in section 194D of the Family Assistance Administration Act for a provider to be approved under the family assistance law in respect of that service (section 194B of the Family Assistance Administration Act). Continued satisfaction of the service eligibility rules is also a condition for the continued approval of an approved provider under the family assistance law (subsection 195A(1) of the Family Assistance Administration Act).
  3.   Currently, section 45 of the Principal Rules sets out additional criteria for satisfying the service eligibility rules where a provider applies for approval under the family assistance law in respect of a centre-based day care service (subsection 45(2)), in respect of an outside school hours care service (subsections 45(3)-(3A)), and in respect of a family day care (FDC) service (subsection 45(4)).
  4.   The effect of new subsection 45(5) is to specify additional criteria for satisfying the service eligibility rules where a provider applies for approval in respect of an IHC service. These criteria are that:
    •         the service must primarily provide education and care; and
    •         the service must not provide any of the following services, except to the extent that they are reasonably incidental to the provision of education and care:
      1.       undertaking household chores, such as cleaning, shopping, and meal preparation;
      2.       other support services, such as including parental support, disability support, allied health services, or respite care.
  5.   The additional criteria in subsection 45(5) are intended to ensure that IHC services remain focused on delivering education and care to children, consistent with the purpose of CCS, which is to assist families with the cost of child care, not to fund household assistance or other support services. Limiting these activities to those that are reasonably incidental to the provision of education and care maintains the integrity of the CCS program.

Item 5 – Paragraphs 48A(2)(a) and (b)

  1.   Item5 repeals paragraphs 48A(2)(a) and (b) of the Principal Rules and substitutes them with a new paragraph 48A(2)(a).
  2.   Section 48A of the Principal Rules sets out additional conditions for continued approval for a provider in respect of an IHC service, in accordance with section 195E of the Family Assistance Administration Act.
  3.   Subsection 48A(2) requires the provider to be equipped to provide high quality child care having regard to the provider’s ability and commitment to, amongst other things: (a) provide a tailored, individual education program that is based on each child’s knowledge, ideas, culture, abilities and interests; and (b) develop a program that acknowledges and strengthens the cultural identity of children to whom care is provided (paragraphs 48A(2)(a) and (b)).
  4.   The effect of item 5 is to: (a) combine and clarify the existing requirements in paragraphs 48A(2)(a) and (b) relating to the development and provision of education programs; and (b) introduce a requirement for those programs to be based, and delivered in accordance with, an approved learning framework. The term ‘approved learning framework’ is defined in new subsection 48A(11) (see item 10 below).

Item 6 – Paragraph 48A(2)(e)

  1.   Item 6 repeals and substitutes paragraph 48A(2)(e) of the Principal Rules.
  2.   Existing paragraph 48A(2)(e) relates to a provider’s ability and commitment to ensure that at least one IHC educator who is caring for children at residential premises holds a current first aid qualification. This aspect of the additional conditions for continued approval in section 48A of the Principal Rules is now captured in new section 48AA (see item 11 below).
  3.   New paragraph 48A(2)(e) relates to a provider’s ability and commitment to ensure that the needs for sleep and rest of children are met, including the need for safe sleep practices, having regard to the ages, developmental stages and individual needs of the children. The intention is to promote children’s wellbeing and safety by requiring providers to meet individual sleep and rest needs, including in line with safe sleep practices.

Item 7 – Subsection 48A(8)

  1.   Item 7 repeals subsection 48A(8) of the Principal Rules and substitutes it with new subsections 48A(8) and (9).
  2.   Existing subsection 48A(8) requires a provider of an IHC service to comply with the IHC National Guidelines, as existing from time to time. This requirement is no longer needed as central aspects of the IHC National Guidelines are being expressly set out in the Minister’s Rules through the amendments in Schedule 2 to the Amendment Rules. Setting out the requirements directly in the Minister’s Rules will ensure that the obligations of providers of IHC services are clear and incorporated into the legislative framework.
  3.   New subsections 48A(8) and (9) impose requirements relating to home safety assessments and checks, specifically:
    •         before an IHC service provides its first session of care at a particular location, the provider of the IHC service must conduct a home safety assessment of the location;
    •         before each session of care provided by an IHC service at a particular location, the provider of the IHC service must ensure that a safety check of the location is conducted.
  4.   The terms ‘home safety assessment’ and ‘safety check’ are defined in new subsection 48A(11) (see item 10 below).
  5.   Importantly, home safety assessments and safety checks are required to be conducted for any location where care is provided, which could include the child’s home or another location. This is consistent with existing requirements in the Principal Rules for IHC to be provided at the home of the individual who would be eligible for CCS for the sessions of care, or a different location if approved by the Secretary (subsections 15B(5)-(6) of the Principal Rules).
  6.   These requirements ensure care is provided in a safe environment by requiring providers to identify and address hazards before care begins and to verify ongoing safety before each session of care. This strengthens child safety protections and supports consistent standards across all locations where IHC is delivered.

Item 8 – Before paragraph 48A(10)(a)

  1.   Item 8 inserts a new paragraph 48A(10)(aa) before paragraph 48A(10)(a) of the Principal Rules.
  2.   Subsection 48A(10) deals with a provider of an IHC service’s engagement with IHC Support Agencies.
  3.   New paragraph 48A(10)(aa) requires a provider of an IHC service to register with the IHC Support Agency of each State and Territory in which it provides an IHC service. This is intended to formalise existing practice and ensure providers engage with IHC Support Agencies for coordinated service delivery and program oversight.

Item 9 – Paragraph 48A(10)(c)

  1.   Item 9 amends paragraph 48A(10)(c) by removing unnecessary wording that referenced the IHC National Guidelines. This reference is no longer necessary as key obligations are now set out directly in the Minister’s Rules. This will simplify and clarify the obligation under paragraph 48A(10)(c) to provide assistance to and cooperate with IHC Support Agencies.

Item 10 – At the end of section 48A

  1.   Item 10 adds a new subsection 48A(11) at the end of section 48A to set out definitions for various new terms:
    •          ‘approved learning framework’ (which is used in new paragraph 48A(2)(a), see item 5 above) means a learning framework approved and in operation under the Education and Care Services National Law and the Education and Care Services National Regulations;
    •          ‘home safety assessment’ (which is used in new subsection 48A(8), see item 7 above) means a structured evaluation of a location to identify hazards and address risks to children’s health, safety and wellbeing;
    •          ‘safety check’ (which is used in new subsection 48A(9), see also item 7 above) means a brief, documented inspection of a location to ensure the environment remains safe and suitable for children.

Item 11 – After section 48A

  1.   Item 11 inserts a new section 48AA after section 48A of the Principal Rules.
  2.   New section 48AA specifies additional conditions for continued approval for a provider in respect of an IHC service, in accordance with section 195E of the Family Assistance Administration Act, focusing on requirements for IHC educators. These requirements are intended to set clear minimum requirements to ensure safe and quality care.
  3.   New subsection 48AA(2) provides that a provider of an IHC service must ensure that each educator who works at the service:
    •          is 18 years of age or older (paragraph 48AA(2)(a)); and
    •          meets the citizenship and residency requirements in subsection 48AA(3) (paragraph 48AA(2)(b)), namely that the educator be an Australian citizen, the holder of a permanent visa (as defined in section 3 of the Family Assistance Act) or the holder of a visa that permits the holder to work in Australia for a period of 12 or more consecutive months; and
    •          holds a current approved first aid qualification (paragraph 48AA(2)(c)); and
    •          has undertaken current approved anaphylaxis management training (paragraph 48AA(2)(d)); and
    •          has undertaken current approved asthma management training (paragraph 48AA(2)(e)); and
    •          unless the Secretary has granted an exemption under subsection 48AA(5), holds, or is actively working towards an approved education and care qualification.
  4.   Subsections 48AA(4) to (7) deal with the process for seeking exemptions from the education and care qualification requirement in paragraph 48AA(2)(f). The exemption process aims to maintain access to IHC in remote areas while safeguarding quality through support by a qualified educator. Essentially, the provider may apply to the Secretary for an exemption, and the Secretary may grant an exemption if the Secretary is satisfied of the following matters:
    •          the educator (referred to as the ‘first educator’) provides care in an area that is designated as ‘Remote Australia’ or ‘Very Remote Australia’ in accordance with data published by the Australian Bureau of Statistics; and
    •          the first educator will receive support and guidance from another educator (referred to as the ‘second educator’) who holds an approved education and care qualification and provides support and guidance for at least 20 per cent of the time the first educator is providing care.

If the Secretary is not satisfied of these matters, the Secretary must refuse to grant the exemption. Importantly, a decision to grant or refuse an exemption is reviewable on internal review under section 108 of the Family Assistance Administration Act, as further explained in the Note under subsection 48AA(7). Under subsection 111(1) of the Family Assistance Administration Act, if a decision has been affirmed, varied or set aside on internal review, application may be made to the Administrative Review Tribunal (ART) for review of the decision. This ensures that providers affected by a decision under new section 48AA(8) are entitled to multiple levels of review – not only internal review, but also review by the ART. 

  1.   Subsection 48AA(8) clarifies that a qualification or training mentioned in subsection 48AA(2) is taken to be current in the circumstances set out in regulation 136 of the Education and Care Services National Regulations.
  2.   Subsection 48AA(9) includes definitions for various terms used in new section 48AA by reference to definitions in the Education and Care Services National Regulations.
  3.   The power to grant exemptions under new subsection 48AA(5) may be delegated under section 221 of the Family Assistance Administration Act, which provides that the Secretary may delegate to an officer all or any of the Secretary’s powers under the family assistance law (subject to exceptions set out in subsections 221(3) and (4) which are not relevant here). Family assistance law is defined in subsection 3(1) of the Family Assistance Administration Act as including any instrument made under the Family Assistance Administration Act or the Family Assistance Act. The Principal Rules are an example of an instrument made under the Family Assistance Act, and are therefore part of the family assistance law.

Item 12 – Section 49B

  1.   Item 12 repeals and substitutes section 49B of the Principal Rules to specify a wider range of matters that the Secretary must take into account in allocating places to an IHC service. These considerations aim to ensure places are allocated where they are most needed, and to providers able to provide safe and quality care.
  2.   Division 5 of Part 8 of the Family Assistance Administration Act deals with the allocation of child care places. Paragraphs 198A(b) and (g) of the Family Assistance Administration Act enable the Principal Rules to prescribe: matters to be taken into account in working out the number (if any) of child care places to be allocated to approved child care services, and matters to be taken into account in working out the number of child care places by which the number of child care places allocated to approved child care services may be reduced under section 198C of the Family Assistance Administration Act.
  3.   Accordingly, new subsection 49B provides that, in working out the number of places to be allocated to an IHC service, or the number of allocated places to be reduced, the Secretary must take into account:
    •          if applicable, the number of child care places that the service is, under a law of a State or Territory, licensed to provide; and
    •          whether, and the extent to which, any places currently allocated to the service are used; and
    •          current demand for IHC, which would include demand for IHC nationally, or in the specific jurisdiction or geographic area in which the service operates, which the Secretary would assess having regard to data sources available to the Secretary and information provided by the relevant provider as part of its application to increase or decrease the number of allocated child care places; and
    •          the matters mentioned in subsection 194EA(1) of the Family Assistance Administration Act, which sets out a range of quality and safety considerations for providers and their child care services; and
    •          any non-compliance by the provider of the service with a law of the Commonwealth or a State or Territory.

Schedule 3 – Amendments

Part 1- Serious Incident

Item 1 – Section 4

  1.   This item inserts a definition for ‘WHS Laws’ in section 4 of the Principal Rules; section 4 provides the meaning of key terms used in the Rules. The definition of ‘WHS Laws’ is the same as that which is currently prescribed in subsection 49(6), which is repealed in the Amendment Rules (see item 9). The term is used in the definition of ‘serious incident’ (see item 2), in subsections 49(5) and 49(7) of the Principal Rules.

Item 2 – After Division 4 of Part 4

  1.   Item 2 inserts a new section 46AA into new Division 4A ‘Quality and safety considerations’. This section defines the meaning of ‘serious incident’ for the purposes of subsection 194EA(2) of the Family Assistance Administration Act.
  2.   Section 194EA sets out the quality and safety considerations that the Secretary must have regard to when considering if the provider eligibility or service eligibility rules are met. These matters include having regard to notifications and complaints about ‘serious incidents’. Subsection 194EA(2) provides that for the purposes of that section, ‘serious incident’ has the meaning prescribed by the Minister’s rules.
  3.   New paragraph 46AA(a) provides that for providers approved under the Education and Care Services National Law, ‘serious incident’ means each incident or class of incidents prescribed by the Education and Care Services National Regulations as a serious incident. In effect, this reflects the definition of ‘serious incident’ under subsection 5(1) of the Education and Care Services National Law. Section 12 of the Education and Care Services National Regulations then prescribes the list of incidents that are defined to be ‘serious incidents’.
  4.   A separate meaning of ‘serious incident’ is provided in new paragraph 46AA(b) for any provider that is not approved under the Education and Care Services National Law. This group of providers include providers of IHC services and providers to which section 50 of the Principal Rules apply (for example, many of the providers of Community Child Care Fund services). The definition for this group of providers largely aligns with the definition of serious incident prescribed by the Education and Care Services National Regulations and differs mainly:
  • to accommodate the different drafting required to reflect the terminology used in the family assistance law as compared to the Education and Care Services National Law and Regulations; and
  • to include incidents required to be reported to the Regulator under any applicable WHS Laws.

Item 3 – Subsection 48A(3)

  1.   Section 48A of the Principal Rules sets out additional conditions for continued approval for approved providers of IHC services that do not have a provider approval within the meaning of the Education and Care Services National Law. Current subsection 48A(3) requires providers of IHC services to implement appropriate arrangements to manage serious incidents and specifies two notification requirements.
  2.   Item 3 repeals existing subsection 48A(3) and substitutes a new provision. The new subsection 48A(3) retains the requirement for providers of IHC services to implement appropriate arrangements to manage serious incidents but omits the two notification requirements. This is because these notification requirements have been moved to new subsection 48A(4A) to be grouped with other notification requirements (see item 5).

Item 4 – Subsection 48A(4)

  1.   Item 4 is a consequential amendment. As the meaning of ‘serious incident’ (see item 2) is now prescribed in new section 46AA, it is no longer necessary to include the definition in subsection 48A(4). Instead, new subsection 48A(4) provides that for the purposes of subsection 48A(3), ‘serious incident’ has the same meaning as in paragraph 46AA(b), which is the part of the definition that applies to providers that do not have a provider approval within the meaning of the Education and Care Services National Law. 

Item 5 – After subsection 48A(4)

  1.   Item 5 inserts a new subsection 48A(4A) under the heading ‘notification’. This new subsection includes the two serious incident notification requirements currently contained in subsection 48A(3) of the Principal Rules and prescribes three additional notification requirements to align with the Education and Care Services National Law.
  2.   New paragraphs 48A(4A)(a) and (b) retain the current notification requirements contained in paragraphs 48A(3)(a) and (b) of the Principal Rules which require providers of IHC services to notify the Secretary, in writing, within 24 hours after a serious incident occurs, or after a circumstance occurs that could have resulted in the occurrence of a serious incident.
  3.   New paragraph 48A(4A)(c) compels providers of IHC services to notify the Secretary, within 24 hours, after receiving a complaint in respect of a child care service of the provider alleging that a serious incident has occurred or is occurring. This is consistent with paragraph 174(2)(b) of the Education and Care Services National Law and paragraph 176(2)(b) of the Education and Care Services National Regulations and supports the operation of paragraph 194EA(1)(d) of the Family Administration Act which enables the Secretary to take into account complaints of such matters as part of the quality and safety considerations.
  4.   New paragraphs 48A(4A)(d) and (e) compel providers of IHC services to notify the Secretary, in writing, within 24 hours after an incident occurs where a provider reasonably believes that physical or sexual abuse of a child or children has occurred, or is occurring, or when the provider receives an allegation that physical or sexual abuse of a child or children has occurred or is occurring, while the child or children are being educated or cared for by a service of the provider. Again, these obligations are consistent with those imposed on providers that hold provider approvals under the Education and Care Services National Law (see paragraph 174(2)(c) of the Education and Care Services National Law and paragraphs 175(2)(d) and (e) and 176(2)(bb) and (bc) of the Education and Care Services National Regulations).
  5.   New subsection 48A(4B) provides that for the purposes of subsection 48A(4A), ‘serious incident’ has the same meaning as in paragraph 46AA(b) which is the part of the definition that applies to providers that do not have a provider approval within the meaning of the Education and Care Services National Law.

Item 6 – Subsection 49(3)

  1.   Section 49 sets out additional conditions for continued approval for a provider in respect to child care services to which section 50 of the Principal Rules applies (certain providers not required to meet State/Territory requirements). These are services that are not approved under the Education and Care Services National Law. Subsection 49(3) requires these providers to implement appropriate arrangements to manage serious incidents. This includes notifying the Secretary in writing, within 24 hours, after a serious incident occurs, or after a circumstance occurs that could have resulted in the occurrence of a serious incident (paragraphs 49(3)(a) and (b) of the Principal Rules).
  2.   Item 6 repeals existing subsection 49(3) and substitutes a new provision. The amendments in item 6 are the same as the amendments made in item 3 (in respect of providers of IHC services), but apply to providers in respect to child care services to which section 50 of the Principal Rules apply. The notification requirements are retained and moved to new subsection 49(4A) (see item 8).

Item 7 – Subsection 49(4)

  1.   Item 7 is a consequential amendment. As the meaning of ‘serious incident’ (see item 2) is now prescribed in new section 46AA, it is no longer necessary to include the definition in subsection 49(4). Instead, new subsection 49(4) provides that for the purposes of subsection 49(3), ‘serious incident’ has the same meaning as in paragraph 46AA(b), which is the part of the definition that applies to providers that do not have a provider approval within the meaning of the Education and Care Services National Law. 

Item 8 – After subsection 49(4)

  1.   Item 8 inserts a new subsection 49(4A), under the heading ‘notification’. This new subsection includes the two serious incident notification requirements currently contained in paragraphs 49(3)(a) and (b) of the Principal Rules and prescribes additional notification requirements in new paragraphs 49(4A)(c), (d) and (e).
  2.   The amendments in item 8 reflect the amendments made in item 5 (in respect of providers of IHC services) but apply to providers in respect to child care services to which section 50 of the Principal Rules apply.
  3.   The amendments ensure consistency with notification requirements contained in the Education and Care Services National Law, and new paragraph 49(4A)(c) also supports the operation of paragraph 194EA(1)(d) of the Family Administration Act (see item 5).
  4.   New subsection 49(4B) provides that for the purposes of subsection 49(4A), ‘serious incident’ has the same meaning as in paragraph 46AA(b) which is the part of the definition that applies to providers that do not have a provider approval within the meaning of the Education and Care Services National Law.

Item 9 – Subsection 49(6)

  1.   Item 9 repeals subsection 49(6) and is a consequential amendment. Since ‘WHS laws’ will now be defined in section 4 of the Principal Rules in accordance with Item 1 of this Schedule, it is no longer necessary for the definition to be included in subsection 49(6).

Part 2 – Other measures that commence the day after the Amendment Rules are registered

Item 10 – Subsection 7A(2)

  1.   This item amends subsection 7A(2) to correct a drafting error. Paragraph 7A(1)(b) provides that one of the circumstances in which a provider ‘ceases to operate’ for the purposes of section 197H of the Family Assistance Administration Act is if the provider is a body corporate and the body corporate is deregistered (within the meaning of the Corporations Act 2001).
  2.   Subsection 7A(2) provides that subsection 601AH(5) of the Corporations Act 2001 (about reinstatement after deregistration) should be disregarded for the purposes of paragraph 7(1)(a). This item replaces the reference to paragraph 7(1)(a) with paragraph 7A(1)(b) as originally intended.

Item 11

  1.   Item 11 substitutes the reference to ‘2026’ in paragraph 10(j) of the Principal Rules with ‘2027’.
  2.   This will have the effect of extending, from 30 June 2026 to 30 June 2027, the end of the period in which children enrolled at one of the services participating in the Commonwealth-supported Intensive ECEC Model Trial (the Trial) overseen by Parkville Institute Ltd are taken to be at risk of serious abuse or neglect for the purposes of eligibility for Additional Child Care Subsidy (ACCS) (child wellbeing) under section 85CA of the Family Assistance Act.
  3.   This item is intended to ensure the continuity of the current arrangements in relation to the Trial by extending the period in which children enrolled at Trial services are eligible for ACCS (child wellbeing) until 30 June 2027. It allows providers, for the purposes of section 85CB of the Family Assistance Act, to continue issuing certificates that they consider the child is or was at risk of serious abuse or neglect on a day, and for the Secretary, for the purposes of section 85CE of the Family Assistance Act, to determine that children participating in the Trial are eligible for ACCS (child wellbeing) because the Minister’s rules prescribe this as a circumstance in which the child is taken to be at risk of serious abuse or neglect.

Item 12

  1.   Item 12 substitutes the reference to ‘2026’ in paragraph 11B(c) of the Principal Rules with ‘2027’.
  2.   This will have the effect of extending, from 30 June 2026 to 30 June 2027, the end of the period in which children enrolled at one of the services participating in the Trial overseen by Parkville Institute Ltd may be subject to extended ACCS (child wellbeing) determinations of up to 52 weeks.
  3.   This item is intended to ensure the continuity of the current arrangements in relation to the Trial by enabling ACCS (child wellbeing) determinations to be made every 52 weeks (as opposed to a maximum of every 13 weeks) until 30 June 2027. By deeming participants to be ‘at risk’ and enabling eligibility determinations to be made every 52 weeks (as opposed to every 13 weeks), these amendments support the Trial by providing certainty of ACCS (child wellbeing) for participants, minimise administrative requirements, and address disincentives to participation. As risk factors are assessed as part of acceptance into the Trial, frequent reassessment is not considered necessary.

Item 13

  1.   Item 13 substitutes the reference to ‘2025’ in paragraph 16A(3D)(a) of the Principal Rules with ‘2027’.
  2.   New paragraph 16A(3D)(a) extends, from 31 December 2025 to 31 December 2027, the end of the period in which preschool payments made by a State or Territory, or an authority of a State or Territory, are prescribed for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act. Prescribed payments do not reduce the hourly session fee for a session of care for the purposes of working out the hourly rate of CCS for that session. A family’s co-contribution, or gap fee, may then be reduced or removed without affecting their CCS entitlement.
  3.   This item is intended to ensure the continuity of the current arrangements in relation to State and Territory preschool payments under subsection 16A(3D) of the Principal Rules. The amendment enables these payments to be made in respect of sessions of care provided to children until 31 December 2027. Payments must continue to meet the eligibility criteria under paragraphs 16A(3D)(b), (c) and (d) of the Principal Rules to be prescribed.

Item 14

  1.   Item 14 repeals and substitutes paragraph 16A(3D)(b) of the Principal Rules to clarify that prescribed State and Territory preschool payments may be made in respect of sessions of care provided by centre-based day care services operated by a State or Territory or an authority of a State or Territory.
  2.   This item clarifies that prescribed payments under subsection 16A(3D) operate consistently across government-owned and non-government-owned services and does not affect the continuity of the current arrangements under the Principal Rules. With the Amendment Rules repealing s 54B(2) and (3) of the Principal Rules, the amendment ensures that individuals remain, until 31 December 2027, eligible to benefit from State and Territory preschool payments, which do not affect their CCS entitlement where the service is operated by a State or Territory or an authority of a State or Territory. Payments must continue to meet the eligibility criteria under paragraphs 16A(3D)(a), (c) and (d) of the Principal Rules.

Item 15

  1.   Item 15 substitutes the reference to ‘third party’ in the heading of section 47A of the Principal Rules with ‘prescribed’.
  2.   This item is intended to avoid any confusion that may be created by new paragraph 16A(3D)(b), which establishes that prescribed State and Territory preschool payments may be made in respect of sessions of care provided by centre-based day care services operated by a State or Territory or an authority of a State or Territory. The amendment also ensures consistency with the wording in the heading of section 16A, which refers to payments prescribed for the purposes of paragraph 2(2A)(c) of Schedule 2 to the Family Assistance Act as ‘prescribed payments’ rather than ‘third party payments’.

Item 16

  1.   Item 16 omits the reference to ‘or by States or Territories’ from the heading of section 54B of the Principal Rules.
  2.   This item reflects the Amendment Rules repealing subsections 54B(2) and (3) of the Principal Rules which enabled providers to pass on State and Territory preschool payments to individuals as a prescribed circumstances discount for the purposes of subsection 201BB(1) of the Family Assistance Administration Act.

Item 17

  1.   Item 17 is a technical consequential change because of the Amendment Rules repealing subsections 54B(2) and (3).

Item 18

  1.   Item 18 repeals subsections 54B(2) and (3) of the Principal Rules to reflect the expiry of subsection 54B(2) on 31 December 2025.
  2.   The financial benefit of the prescribed circumstances discount to families, which allowed government-owned preschool services to reduce the cost of care for individuals without affecting their CCS entitlement, will be facilitated under subsection 16A(3D) of the Principal Rules as a prescribed State and Territory preschool payment until 31 December 2027.

Part 3- Measures that commence at the same time as Part 5 of Schedule 1 to the Early Childhood Education and Care (Strengthening Regulation of Early Education) Act 2025

Item 19 – Section 54A

  1.   This item amends the Principal Rules to align with the amendments made to section 201B of the Administration Act by the Strengthening Regulation Act. The Administration Act will be amended to require all gap fee payments for FDC and IHC to be made directly to the provider, unless the Secretary is satisfied that circumstances prescribed by the Minister’s Rules exist in relation to the individual. Section 54A of the Principal Rules is being amended to allow for an exception to this requirement where the individual would reasonably be put at risk of family or domestic violence if they made the gap fee payment directly to the provider. An individual in this prescribed circumstance would not be required to pay the provider directly.
  2.   This amendment is intended to ensure that the new policy does not place vulnerable families at risk. For example, paying gap fees electronically directly to the provider could allow a person at risk of domestic or family violence to be tracked by a partner or former partner with access to their finances. It expands on the existing exception to the requirement to pay fees using an electronic funds transfer system.
  3.   Domestic violence includes any behaviour within an intimate relationship (including current or past marriages, domestic partnerships or dates) that causes physical, sexual or psychological harm. Family violence is a broader term than domestic violence, as it refers not only to violence between intimate partners but also to violence perpetrated by parents and guardians against children, between other family members and in family-like settings.

 

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.