Funding essentials for long day care providers

​​​​​​​​​​​​​​The Queensland Kindergarten Funding essentials for long day care providers is a comprehensive guide to all aspects of kindy funding including eligibility, claims and payments, legal obligations, assurance and subsidies.

The following information will support your service's operations and planning around the new free kindy funding. Terms and conditions apply from 1 January 2025.

Eligibility criteria

To be eligible for funding, service providers must meet 2 sets of criteria.

Child eligibility criteria

A child must be at least 4 years of age by 30 June in the year they commence kindergarten. Service providers may only claim funding for each enrolled, eligible child.

Service provider eligibility criteria

Each service provider (individual long day care service provider) must:

• operate a service that has a current service approval under the Education and Care Services National Law (National Law) or the Education and Care Services Act 2013 (ECS Act)
• be registered as an approved kindergarten program provider
• not had approved kindergarten program provider status suspended or revoked
• employ a qualified early childhood teacher or a 'working towards' early childhood teacher with an approved exceptional circumstance from the Department of Education to deliver the approved kindergarten program. Qualifications must
• meet requirements of an early childhood teacher under the National Quality Framework
• be checked against approved Australian Children's Education and Care Quality Authority (ACECQA) early childhood teacher qualifications
  
• deliver an approved kindergarten program using the Queensland kindergarten learning guideline or an alternative kindergarten learning guideline accredited by the Queensland Curriculum and Assessment Authority
• offer and provide all eligible children in the approved kindergarten program an annual provision of 600 hours made up of at least 15 hours a week or 30 hours per fortnight for 40 weeks. Any other model must be approved by the Department of Education prior to commencement
• have a rating of working towards National Quality Standard or higher. Services waiting to be assessed by the regulatory authority against the National Quality Standard are still eligible for funding
• have the correct eligibility status to receive Australian Government Child Care Subsidy payments on behalf of eligible families (long day care service providers)
• ensure that the fee charged for eligible children participating in an approved kindergarten program is not more than the fee charged for any other group at the service
• have kindergarten program fees that are below the Department of Education's funding threshold to opt in to free kindy.

Requirements

In claiming and receiving kindergarten funding, service providers agree to and must:

• adhere to the terms and conditions detailed in kindergarten funding service agreements
• retain and provide on request any evidence to demonstrate compliance with kindergarten funding for up to 3 years, including early childhood teacher qualifications, staff rosters, room rolls, programming information, enrolment forms, policies and procedures, invoices, software provider reports, fee structures and family fee statements
• spend funding for eligible children in the year for which the funding was claimed
• adopt a fee structure that is not a barrier to participation by families, including to reduce out-of-pocket expenses for families. Fees charged for eligible children should not be more than for any other age group at the service
• ensure funding is used strictly in accordance with subsidy spending rules
• ensure enrolment policies and procedures are followed and
• prioritise enrolment of eligible children into approved kindergarten programs prior to opening additional programs or enrolling non-eligible children
• ensure claims are made for eligible children in 1 kindergarten program only
• support family choice regarding the service provider to which kindergarten funding is applied, where a child attends multiple long day care services (funding is allocated to the sessional kindergarten if a child attends a long day care and sessional kindergarten)
• ensure enrolments are not refused for eligible children in an approved kindergarten program if funding has been claimed for that child by another service provider
• display the following information at all times an approved kindergarten program is being delivered
• approved kindergarten program provider certificate
• kindergarten program operating times
• approved kindergarten program 'kindy tick' identifier
• name and qualifications of the early childhood teacher delivering the kindergarten program
• fee structure clearly documenting the kindergarten program fees, including how subsidies or other funds are allocated or passed on, so that eligible families understand how kindergarten will be made free for their child. You can use the statement of fees as an editable template for the information you are required to provide
• use the Queensland Curriculum and Assessment Authority online application to develop and upload a transition statement (with family permission) for each eligible child's family in November of the kindergarten year. Read more about kindergarten transition statements
• have a workforce plan that is reviewed at least annually and includes a range of strategies to attract and retain suitably qualified early childhood teachers. Read more about workforce planning.
  

Exceptional circumstances

If a service believes that they have exceptional circumstances that have prevented them from engaging a fully qualified early childhood teacher to deliver their approved kindergarten program, they can complete and submit an exceptional circumstance application form​.

Where an early childhood teacher exceptional circumstance is approved, the progress report declaration form​ is to be completed​​ and submitted to the Department of Education​ twice a year, by 30 January and 17 July respectively, to demonstrate that your approved ‘working towards’ educator is actively making progress towards the completion of their ACECQA approved early childhood teacher qualification.

Kindergarten funding subsidies

Kindergarten funding is provided to service providers through 1 or more subsidies.

• Base subsidy—provided for each eligible child who is enrolled in an approved kindergarten program at a long day care service that has opted in to free kindy.
• Gap fee subsidy—provided for each eligible child enrolled in an approved kindergarten program in a long day care service that has opted in to free kindy and covers the parent fee component of the kindergarten program for at least 15 hours a week for 40 weeks, or 600 hours a year.
• Service location subsidy—provided to service providers that have opted in to free kindy (for each eligible child) where the service is located in an eligible remoteness category using the Australian Bureau of Statistics (ABS) remoteness measure at the SA2 geographic level.
• Kindy Uplift—all early childhood services delivering an approved kindergarten program are invited to participate in Kindy Uplift for a one-year period. This excludes services receiving the per capita kindy subsidy. Kindy Uplift funds professional development, programs, resources and supports to build teacher and educator capability, support inclusion and improve children’s learning and development.​
  
• Inclusion subsidy—provided to service providers to support inclusion of all eligible children in an approved kindergarten program irrespective of diversity of background or additional needs.
• Per capita kindy subsidy—provided to service providers that have not opted in to free kindy.

Kindergarten funding claims and payments

Long day care service providers are funded through quarterly payments over a calendar year, based on information provided by service providers to the Department of Education through QGrants.

Service location subsidies are paid to long day care service providers in advance, with an acquittal process completed at the end of each quarter. Payments of the base subsidy are made on receipt of the acquittal.

Payments are made via electronic funds transfer.​

Legal obligations

Approved providers of long day care services have legal obligations relating to kindergarten funding and must have financial oversight of the use of grant funding provided to each service provider.

Each approved provider of individual or multiple long day care services is the legal entity that enters into a contractual relationship with the Department of Education. Legal obligations include:

• reporting requirements
• accurate submission of claims including agreement to the kindergarten funding terms and conditions
• compliance with the kindergarten funding category guidelines and the kindergarten funding essentials, including service eligibility and other requirements.

Approved providers must enter into a new service agreement with the Department of Education at the beginning of each calendar year to remain eligible to receive kindergarten funding. This agreement is provided under the Community Services Act 2007 and binds approved providers to the standard terms and conditions, kindergarten funding category guidelines and kindergarten funding essentials.

Approved providers are legally bound to provide forecast and acquittal claims for each service provider, including those service providers submitting a 'nil claim'.

When making quarterly claims, approved providers must ensure claims represent true and accurate information.

Kindergarten funding assurance

The Department of Education conducts assurance reviews of approved kindergarten providers to monitor compliance against the requirements of kindergarten funding.

Assurance reviews are conducted by officers authorised under the Community Services Act 2007. The Community Services Act 2007 authorises investigating, monitoring and ensuring compliance of services in receipt of kindergarten funding.

Funding provided by the Department of Education will be recovered (or reimbursed) in full for all periods where:

• the kindergarten funding terms and conditions, service eligibility criteria or requirements have not been met, or there is insufficient evidence to support compliance
• there is insufficient evidence of
• appropriate expenditure of subsidies
• support for claims, particularly where the claim falls outside the normal operating context of the service
• claiming anomalies or deliberate overclaiming have been identified
• subsidies have not been passed on to families
• funding has not been correctly applied
• enrolment of an eligible aged child into the kindergarten program has been denied on the basis of parental choice as to the application of the funding in multiple service settings.

Long day care service provider subsidies

Base subsidy for long day care service providers

The base subsidy is provided to service providers for each eligible child enrolled in an approved kindergarten program.

Base subsidy amounts funded

Read the table of amounts that can be claimed (appendix 4).

Base subsidy spending rules (inclusions)

A minimum of 80% of the base subsidy must only be spent on:

• improved entitlements for the early childhood teacher and up to 2 diploma or higher qualified educators delivering the approved kindergarten program, including
• additional pay on top of their award wage and on-costs (e.g., superannuation)
• lump sum bonus paid directly to the early childhood teacher and diploma or higher qualified educator/s
• additional paid annual leave and on-costs paid on additional leave and leave loading
• payment of additional programming hours or non-contact times for the early childhood teacher (in addition to award entitlements for the early childhood teacher such as lunch break or programming time) and on-costs
• professional development (delivered by an accredited organisation that does not have the same ABN as the service) for the early childhood teacher and diploma or higher qualified educator/s specifically to assist them in delivering an approved kindergarten program
• learning resources for the early childhood teacher and diploma or higher qualified educator/s to enhance the delivery of an approved kindergarten program.

A maximum of 20% of the base subsidy can only be spent on:

• quality and age-appropriate resources specifically for eligible children
• providing extracurricular kindergarten activities (provided all eligible children undertake the activity, the early childhood teacher is present and participating, and the early childhood teacher includes the activity as part of their curriculum), with no cost to families
• removing any barriers to participation for eligible children experiencing vulnerability, which should be undertaken in consultation with families.
  

Where 10 or more long day care services are under a single approved provider (grantee), base subsidy funding may be distributed across services where the approved provider has entered into a service agreement with the department to permit this arrangement. The application of the base subsidy across multiple grantees is not permitted.

Base subsidy spending rules (exclusions)

The base subsidy must not be used for expenditure on general items used in the operation of the service, such as:

• award wages for the early childhood teacher and diploma or higher qualified educator/s
• other educator or support staff wages
• renovations, maintenance and utilities (e.g., rates, water, and electricity)
• furniture
• general food and groceries
• cleaning and hygiene products
• storage and storage containers
• celebrations, including catering, travel, venue hire, entertainment or gifts not related to the learning program
• decorations and party hire
• first aid material and sunscreen
• bedding and sheets
• safety items (e.g., softfall and shade sails)
• service software programs and memberships
• capital expenditure/improvements
• fixed structures (e.g., play forts, swings and slides).

Distribution of the base subsidy across services is not permitted unless the approved provider has a specific service agreement with the department permitting this arrangement.

Base subsidy financial obligations

The approved provider (individual or multiple services) must be able to demonstrate to the Department of Education:

• how the base subsidy was spent by each service provider for which the funding was granted
• that the base subsidy was used for the relevant kindergarten cohort enrolled in the year for which the funding was claimed
• that the base subsidy was used to directly enhance the approved kindergarten program for which the funding was granted
• that kindergarten funding was not used to subsidise the delivery of other programs (e.g., kindergarten programs for non-eligible children).

Each approved provider (individual or multiple services) must retain and provide on request evidence to demonstrate compliance with kindergarten funding base subsidy. This evidence may include:

• enrolment policy and procedures supported by enrolment forms
• fee structure for the service
• family fee statements
• detailed cost centre reports
• financial reports supported by receipts, invoices or bank account statements
• payslips/​employment contracts
  
• correspondence relating to negotiation of the early childhood teacher wage
• staff rosters.

Gap fee subsidy

The gap fee subsidy is provided for each eligible child enrolled in an approved kindergarten program delivered by a long day care service that has opted in to free kindy, and covers the parent fee component of the kindergarten program for 15 hours a week or 30 hours a fortnight for 40 weeks, or 600 hours a year.

Services can use the Free Kindy calculator to assist with calculating the gap fee subsidy. An example parent fees letter template is also available.

Each approved provider or long day care service must identify the gap f​ee subsidy (free kindy amount) paid by the Queensland Government on each family's fee statement. Where this is not possible, the family fee statement must include the '​kindy tick' and free kindy logo to demonstrate to the family that they have received free kindy.

Gap fee subsidy spending rules (inclusions)

The gap fee subsidy is paid on top of other subsidies to make kindergarten free and covers a portion of the day’s fees, dependent on the number of hours the early childhood teacher is delivering the approved kindergarten program (e.g., two 7.5-hour days or three 5-hour days).

The kindergarten program component of the day is free and is the out of pocket cost that families would normally pay after the child care subsidy.

The gap fee subsidy also covers the Australian Government’s withholding rate of 5%. Planned incursions and excursions should be part of the educational program and built into the fee structure for the service.

Gap fee subsidy spending rules (exclusions)

• Wraparound hours that fall outside of when the early childhood teacher is delivering the approved kindergarten program.
• Application and enrolment fees, if required, which should be minimal and will be payable by the family.

Gap fee subsidy financial obligations

The approved provider (individual or multiple services) must be able to demonstrate to the Department of Education:

• how the gap fee subsidy was allocated to each eligible child
• that the subsidy was not used to subsidise non-eligible children.

Each approved provider or long day care service must identify the gap fee subsidy paid by the Queensland Government on each family's fee statement. Where this is not possible, the family fee statement must include the 'kindy tick' and free kindy logo to demonstrate to the family that they have received free kindy.

Each approved provider must retain and provide, on request, evidence to demonstrate compliance with the gap fee subsidy. This evidence may include:

• enrolment policy and procedures, supported by enrolment forms
• fee structure for the service
• family fee statements
• detailed cost centre reports
• financial reports, supported by receipts, invoices or bank account statements.

Service location subsidy

The service location subsidy is provided for each eligible child to service providers located in an eligible remoteness category using the ABS remoteness measure at the statistical area level 2.

The subsidy is designed to assist service providers to attract and retain qualified early childhood teachers to deliver an approved kindergarten program.

It is provided for each eligible child enrolled in the service through varying amounts.

Service location subsidy amounts funded

The subsidy is calculated as a per child amount multiplied by the number of eligible children enrolled in the service. Where eligible enrolments are fewer than 22 children (at the service), a minimum payment based on 22 enrolments will be provided.

The kindergarten funding service agreement includes a condition that the service provider must seek to maximise the number of eligible aged children enrolled in the program. As a condition of payment, the Department of Education may seek additional information or evidence from the service about activities to maximise eligible aged enrolments.

Read the details of amounts that can be claimed (appendix 4).

Service location subsidy spending rules

The service location subsidy must only be used to attract and retain qualified early childhood teachers, including:

• assisting the early childhood teacher with relocation costs​
  
• subsidising rent for the early childhood teacher
• paying above award wages
• paying a bonus in addition to their wages
• providing additional paid annual leave
• subsidising flights to and from the community to the early childhood teacher's home base
  
• subsidising visa sponsorship costs
• accessing professional development (delivered by an accredited training organisation that does not have the same ABN as the service) for the early childhood teacher specifically to assist them in delivering an approved kindergarten program
• purchasing learning resources for the early childhood teacher to enhance their delivery of an approved kindergarten program.

Service providers must prepare and retain an annual Service Location – Early Childhood Teachers plan specifying how the funding will be used to attract and retain early childhood teachers. Download a sample template in an editable format.

Service location subsidy financial obligations

The approved provider (individual or multiple services) must be able to demonstrate to the Department of Education how the service location subsidy has been spent by service providers for the purpose of attracting and retaining a qualified early childhood teacher.

Each approved provider (individual or multiple services) must retain and provide on request evidence to demonstrate the above. This evidence may include:

• early childhood teacher payslips/employment contract
• correspondence relating to negotiation of the early childhood teacher wage
• financial reports supported by receipts, invoices or bank account statements
• evidence of administering and monitoring financial viability component
• annual Service Location – Early Childhood Teachers plans.

Kindy Uplift

Kindy Uplift is provided to eligible service providers to respond to children's learning and development needs through provision of evidence-based initiatives. Kindy Uplift is designed to strengthen children's access to, and meaningful participation in, the full range of kindergarten experiences.

The Department of Education determines service and funding eligibility.

Kindy Uplift amounts funded

Read the amounts that can be claimed (appendix 4).

Kindy Uplift spending rules (inclusions)

Kindy Uplift must be used to improve children's learning and development. Funding can be used for professional development, programs, resources and educational supports to build teacher and educator capability and support inclusion. ​​​

All early childhood services delivering an approved kindergarten program are invited to participate in Kindy Uplift for a one-year period. This excludes services receiving the per capita kindy subsidy.

Kindy Uplift funding is for building teacher and educator capability to improve the outcomes of children in kindergarten. Services can use Kindy Uplift to fund professional development, programs, resources and supports relating to capability improvement. Kindy Uplift prioritises the strengthening of inclusion, cultural responsiveness and improving children’s learning and development against the following key priority areas:​

1. Culturally safe, responsive and inclusive kindergarten programs
1. Embedding Aboriginal and Torres Strait Islander perspectives
2. Equity and access for all
2. ​Social and emotional learning
3. Physicality
4. Executive function
5. Language and literacy
6. Mathematics and numeracy

Kindy Uplift encourages all participating services to prioritise embedding Aboriginal and Torres Strait Islander perspectives within their Kindy Uplift plans.

Service providers must submit an annual Kindy Uplift plan to demonstrate how the funding will improve outcomes for eligible children. Each Kindy Uplift plan must be endorsed by a Kindy Uplift advisor and the approved provider.

Kindy Uplift spending rules (exclusions)

Use of Kindy Uplift funds to support staffing ratios is out of scope. Services are permitted to use the funding to pay wages and employ staff (or training for new staff) to support teachers and educators, children and families to respond to educational needs (e.g., bicultural support workers, family support workers, cultural advisors, Elders in residence and early childhood experts/coaches).

Kindy Uplift must not be used for any costs not directly related to the delivery of the approved Kindy Uplift plan.

Kindy Uplift financial obligations

Each approved provider (individual or multiple services) must be able to demonstrate to the Department of Education how Kindy Uplift was spent by each service provider for which the funding was granted.

Each approved provider (individual or multiple services) must retain and provide on request evidence to demonstrate compliance with kindergarten funding for Kindy Uplift.

This evidence may include:

• enrolment policies and procedures supported by enrolment forms
• financial reports supported by receipts, invoices or bank account statements
• an approved Kindy Uplift plan.

Each approved provider (individual or multiple services) must acquit this funding at the end of each calendar year. This acquittal must be submitted through QGrants on or before 28 January of the following calendar year.

Inclusion subsidy

The inclusion subsidy (Inclusion Ready) is provided to service providers to support inclusion of all eligible children in an approved kindergarten program, irrespective of diversity of background or additional needs. Funding is provided to ensure all eligible children meaningfully participate in kindergarten on the same basis as their peers.

The Inclusion Ready subsidy is provided to service providers for each eligible child enrolled in an approved kindergarten program.

The Inclusion Ready subsidy is provided to service providers to:

• improve kindergarten participation and attendance for all children
• ensure eligible children with diverse backgrounds or additional needs are provided with adjustments, supplementary to the strategies and resources already available
• remove any barriers to participation for eligible children experiencing vulnerability, which should be undertaken in consultation with families
  
• engage in professional development to ensure educators support children and families to feel welcome, engaged and culturally safe
• support the transition into kindergarten or Prep for children with diverse backgrounds or additional needs.
  

Inclusion subsidy amounts funded

Read the amounts that can be claimed (appendix 4).

Inclusion subsidy spending rules (inclusions)

The Inclusion Ready subsidy must be spent to improve access and participation for all children, including those with diverse backgrounds or additional needs. Funding must be spent on:

• diploma-qualified educators (e.g., time release/backfill for teaching team to connect with external organisations)
• programs (e.g., Breakfast Club)
• resources (e.g., hats and bags for all kindergarten children, bus service for kindergarten children to access and participate in the approved kindergarten program)
• equipment
• educational materials
• professional development or specialist training
• visiting partners or specialists (e.g., centre visits by allied health specialists or parent and child workshops)
• visiting cultural advisors
• visiting Aboriginal and Torres Strait Elders
• visiting interpreters or translators.

Expenditure of the Inclusion Ready subsidy should be additional to the strategies and resources already available.

Inclusion subsidy spending rules (exclusions)

The inclusion subsidy cannot be used for costs not directly related to the delivery of the approved kindergarten program for eligible children, or general operational costs of the service provider.

Inclusion subsidy financial obligations​

Each approved provider (individual or multiple services) must be able to demonstrate to the Department of Education how the inclusion subsidies were spent by each service provider for which the funding was granted.

Each approved provider (individual or multiple services) must retain and provide on request evidence to demonstrate compliance with kindergarten funding – inclusion subsidy. This evidence may include:

• enrolment policies and procedures supported by enrolment forms
• financial reports supported by receipts, invoices or bank account statements.

Per capita kindy subsidy

The per capita kindy subsidy applies to long day care services that are not eligible to opt in to free kindy where their fees are higher than the funding threshold set by the Department of Education.

Services will receive an annual payment for each eligible child in the kindergarten program and will need to meet all kindergarten program provider eligibility requirements and reporting requirements under the Preschool Reform Agreement to qualify for funding for each eligible child.

Services receiving the per capita kindy subsidy will not be eligible for other kindergarten subsidies, nor will they be able to access Kindy Uplift.

Services can opt in to free kindy anytime during the year provided they can reduce their fees to meet the funding threshold and are otherwise eligible.

Read the amounts that can be claimed (appendix 4).​​​