Have you been affected?
In a recent article in The Australian newspaper, Australian Child Care Alliance president Gwynn Bridge said it was now common for parents to move their children from service to service to avoid paying overdue fees.
The article says that parents are exploiting a loophole in the system which enables them to claim rebates for unpaid bills and that some parents accrue debts amounting to thousands of dollars.
Under the current system parents are entitled to claim up to $7500 per child per year for child care fees with registered providers. However, parents are not required to show evidence that they have paid their fees before claiming the rebate.
In many cases parents are racking up debts, claiming the rebate and then moving onto another service provider. This leaves providers out-of-pocket and having to employ private debt collectors to chase parents for the money.
In the article Ms Bridge suggests the federal Education Department should require parents to provide proof of payment before refunding them money under the child care rebate.
Another suggestion raised in the past was to put together a register of families with child care debt so providers can check the data base before accepting families.
In an attempt to understand the scale of this problem and the number of services being affected we would appreciate it if you would fill in this brief questionnaire. We'll report back next month.
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