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Third party gap fees

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Free kindy from 2024

Kindy is free for all Queensland families from 1 January 2024.

Kindy is for 15 hours per week, 40 weeks per year.

The 2024 Queensland Kindergarten Funding Essentials apply from 1 January 2024.

The Australian Government recognises certain state government subsidies to reduce out-of-pocket costs as 'third party' gap fee payments for child care subsidy purposes.

This enables these subsidies to be applied after Child Care Subsidy (CCS) has been deducted from a family's childcare fees.

The Australian Government recognises the gap fee kindergarten subsidy as a third party payment of gap fees.

Long day care services can deduct this subsidy from a family's fees after applying CCS. This arrangement will ensure that eligible families benefit from fee-free kindergarten.

Examples

Example 1

Nikki's child, Courtney, is 4 years old and is enrolled at the local long day care service for 2 days a week. Courtney attends day care for 20 hours each week, which includes 15 hours in the approved kindergarten program.

Nikki's circumstances:

  • Eligible for a CCS rate of 60%.
  • Eligible for 72 hours a fortnight subsidised care.
  • The service charges $125 a day for a 10-hour session, which is $250 a week before the gap fee subsidy is deducted.

The service is a Queensland Government-approved kindergarten program provider that has opted into free kindy and receives Queensland Kindergarten Funding (QKF) subsidies to help offset the cost of providing a teacher-delivered kindergarten learning program.

Child attends 2 days a week (20 hours a week) Weekly cost a Annual cost a
Childcare fees $250.00 $13,000.00
Less CCS at 60% b $142.50 $7,410.00
Equals out-of-pocket cost (gap fee) before subsidies $107.50 $5,590.00
Free kindy c $80.63 $3,225.20
Parent cost (hours of care outside kindergarten program) $26.87 $1,074.80
Parent cost non-kindy weeks $107.50 $1,290.00

Notes:

  1. Weekly and annual costs are based on a 52-weeks of care. Free kindy is paid by the service equally over 40 weeks.
  2. Includes 5% withheld from CCS which the family can claim in their tax return at the end of the financial year.
  3. Amount that the Queensland Government will pay for the kindergarten program to make it free.

Example 2

John’s child, Connor, is 4 years old and is enrolled at the local long day care service for 3 days a week. Connor attends day care for 30 hours each week, which includes 15 hours in the approved kindergarten program.

John's circumstances:

  • Eligible for the maximum CCS rate of 90% CCS.
  • Eligible for 72 hours a fortnight subsidised care.
  • The service charges $125 a day for a 10-hour session, which is $375 a week before the gap fee subsidy is deducted.

The service is a Queensland Government-approved kindergarten program provider that has opted into free kindy and receives QKF subsidies to help offset the cost of providing a teacher-delivered kindergarten learning program.

Child attends days a week (30 hours a week) Weekly cost a Annual cost a
Childcare fees $375.00 $19,500.00
Less CCS at 90% b $320.64 $16,673.28
Equals out-of-pocket cost (gap fee) before subsidies $54.36 $2,826.72
Free kindy c $27.19 $1,087.60
Parent cost (hours of care outside kindergarten program) $27.17 $1,086.80
Parent cost non-kindy weeks $54.36 $652.32

Notes:

  1. Weekly and annual costs are based on a 52-weeks of care. Free kindy is paid by the service equally over 40 weeks.
  2. Includes 5% withheld from CCS which the family can claim in their tax return at the end of the financial year.
  3. Amount that the Queensland Government will pay for the kindergarten program to make it free.​
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Last updated 04 March 2024