Stamping out fraud in Family Day Care

The Morrison Government will target rorters and fraudsters in a further crackdown to protect Australia’s Family Day Care system. 

The Government has committed an extra $52.2 million over 2018-19 to 2021-22 to tackle fraud and non-compliance issues in the sector. 

Minister for Education Dan Tehan said the new investment would strengthen the Government’s capacity to track, detect and shutdown those providers committing fraud. 

“Since being elected, our Government’s action to stamp out fraud and non-compliance in the child care sector has stopped around $2.8 billion of taxpayers’ money being ripped off,” Mr Tehan said. 

Targeted activity will build on the success of the first wave of the Government’s Family Day Care integrity crackdown. 

“The Family Day Care payment integrity surge removed more than 150 high risk providers, and prevented around $1.2 billion from being paid out to non-compliant and fraudulent Family Day Care providers. 

“We will continue to work to detect and disrupt non-compliant and fraudulent services. There will also be greater cooperation between government agencies to protect other government payments.” 

Mr Tehan said the overwhelming majority of high quality Family Day Care providers who operate according to the law had nothing to fear from the next wave of compliance activity. 

“The majority of Family Day Care services are committed to providing the best possible care for our children. This new work will target and weed out those who are giving the sector a bad name.” 

The Morrison Government will develop education and support products to help Family Day Care services understand and fulfil their compliance obligations. 

Since 1 January 2014, 27 people have been charged with criminal offences for child care fraud and of those, 21 have been found guilty.