From January 1, 2026, all family day care providers will be required under Family Assistance Law (FAL) to collect Child Care Subsidy (CCS) gap fee payments directly from families. This is known as Direct Gap Fee Collection (DGFC), though some in the sector may use the term “centralised model” to describe the same process.
The change is being introduced by the Australian Government to support the sustainability of the family day care sector by:
FDCA is partnering with the Australian Government Department of Education to develop a suite of practical resources and provide tailored practical support to assist you in transitioning to DGFC. Whether your service is in the early stages, already well underway or you're already operating under a centralised model, these resources are designed to support you to critically reflect and refine your current systems, practices, policies and procedures.
All resources are developed in consultation with the sector and are available to both FDCA members and non-members.
Foundational tools to support services and educators in the planning for the transition:
Family Day Care Provider Checklist
A practical guide outlining key stages for planning, implementation and evaluation.
Business Implementation Plan – Template and Example
A blank template to help services plan and document their transition strategy, including timeframes, responsibilities and key actions.
A completed example that demonstrates how a service might structure their transition planning process.
Communications Plan – Template and Example
A blank template to support services in identifying key audiences, messaging, channels, timing, and responsibilities to support consistent communication with educators, families, and staff.
A completed example showing how a service might structure their messaging and roll out of timelines.
Resources for Best Practice:
Practical tools that can help services with governance and continuous improvement:
Resources to be released soon:
Information sheets for families
This factsheet informs families about the changes to CCS gap fee payments from 1 January and how this change may affect them. Services and educators are encouraged to share this factsheet within their networks.
Information sheets for educators
This factsheet outlines what the changes mean for family day care educators, explaining how responsibilities will shift and how to support families and services during the transition.
Educator and Family Communication Scripts
Ready-to-use scripts to help educators feel confident, clear, and supported when discussing DGFC with families.
Examples and insights from services that have already made the transition to DGFC.
Case Study: Reducing the Administrative load
Insights into how one service successfully streamlined its operations while transitioning to DGFC.
Case Study: Getting Debt Management Right
The story of how one service approached debt management as part of DGFC implementation.
Resources to be released soon:
Visit our FAQ page for answers to common questions about the change to direct gap fee payments.
FDCA is also providing ongoing dedicated support throughout the lifespan of the project and beyond 1 January 2026. Our direct support service includes:
Contact FDCA’s sector support team on 1800 658 699 or enquiries@fdca.com.au.