This audit would examine the Department of Education’s effectiveness in modelling the cost of the Child Care Subsidy and ensuring compliance.

During 2021, there were several legislative changes to the Child Care Subsidy (the Subsidy) providing increased benefits. The affordability of the Subsidy is measured by a cost model administered by the department. Accuracy of the cost model, combined with effective compliance measures is required to ensure the scheme is, and remains affordable. ANAO financial statement audit activity has identified an absence of assurance on the cost modelling for the Subsidy.