This audit would assess the effectiveness of the Department of Education and Services Australia’s management and oversight of fraud and non-compliance within the Child Care Subsidy program.

The October 2022–23 Budget committed to a significant increase in the Child Care Subsidy (by $4.7 billion) and savings of $173.0 million over four years from 2022–23 by strengthening payment integrity and accuracy of the Child Care Subsidy program as part of Budget initiatives within the Education portfolio. Additional funding of $18.6 million over four years from 2023-24 for payment integrity activities to safeguard the program was provided in the May 2023-24 Budget, $13.3 million to the Department of Education to support activities to further reduce fraudulent Child Care Subsidy claims, and $5.3 million to Services Australia for their digital forensics capability. Net savings of $139.4 million is expected to be achieved over four years from 2023–24.

Work program portfolios

This potential Performance audit is featured in 2 annual audit work program portfolios: