The “Child Swapping” Family Day Care loophole that was stopped last October is saving taxpayers almost $8 million a week.

According to the ABC, The Federal Governmnent implemented a child care crackdown in October last year, increasing compliance checks and recovering incorrect payments in the process.  It was found that some Family Day Care providers were taking advantage of a loophole that has been dubbed “child swapping.”

Simon Birmingham, Minister for Education and Training told the ABC that invalid claims were being made.

“It was never intended, nor envisaged, that family day care operators would be being paid in effect to look after their own children and what we should be looking to do is ensure that child care is as accessible and affordable as possible for those families who are most reliant on it to juggle work and family.”

Satistics provided to the ABC show that the closure of the loophole had seen weekly subsidy claims plummeting to just over $500,00 and overall was saving the Government more than $7.7 million a week.

Since the new rules have come into effect surrounding child care claims, the statistics show a 92 per cent drop in the number of parents who made claims in this area.

Victoria has seen the biggest drop in claimants, where the amount claimed has dropped from almost $4 million per week to $220,000 per week.

Day care providers have been reassured by Senator Birmingham that only those rorting the system are being targeted in the crackdown.

“All of our childcare reforms, including the ban on child swapping, are drafted very carefully to ensure that we take into consideration any other impacts where there might be legitimate cause for certain practices and where people are in remote circumstances or where children may have special needs that warrant the care of a different family day care provider,” the Senator told the ABC, “That’s permitted under the changes that we’ve brought in.”

The closure of the loophole works within a widespread childcare crackdown, which covers a range of reforms including, the increase of compliance checking and the active recovery of incorrect child payments.


Image Source: Getty Images

  • Wait…. What????


  • Good for tax payers that do not have kids in care!


  • I didn’t know about this, glad they are doing something about it


  • Never knew about this or that it was going on. Childcare is hard to get and getting good childcare even harder, glad the government is tightening these loopholes and wish they would do the same to the ones they use too.


  • My mum ran a home daycare when we were young kids but I never heard of this


  • I had never even heard of it let alone imagined doing it. Just Wow.


  • I had no idea the loophole even existed until I clicked on this link from facebook. Wouldn’t it be a wonderful world if everyone just done the “right” thing?


  • Wouldn’t it be good if every loophole was closed! Imagine how much money THAT would save!


  • i hadn’t even heard of this until right now on this site. wow.


  • Interesting! I know someone who runs a home day care. It’s a pretty hard gig…


  • I had no idea. I’m glad they have stopped it


  • I did not even know about this loophole until it was reported on the news last night. It is a shame that everyone takes advantage of loopholes (politicians included). Wouldn’t it be nice if everyone just do the fair and right thing?


  • Lke mb


Post a comment
Like Facebook page

LIKE MoM on Facebook

Please enter your comment below
Would you like to include a photo?
No picture uploaded yet.
Please wait to see your image preview here before hitting the submit button.
Your MoM account

Lost your password?

Enter your email and a password below to post your comment and join MoM:

You May Like


Looks like this may be blocked by you browser or content filtering.

↥ Back to top

Thanks For Your Star Rating!

Would you like to add a written rating or just a star rating?

Write A Rating Just A Star Rating