Childcare & Education
Accounting for Childcare and Education Providers
Child Care Subsidy reconciliation, GST-exempt income, staff payroll and compliance — handled by a team with education sector experience.
Early childhood education and care (ECEC) providers face accounting complexity that few general accountants understand — Child Care Subsidy (CCS) reconciliation, mixed GST treatment, staffing ratios, and ACECQA compliance. ANH Accounting works with long day care centres, family day care, OSHC, and private education providers across Sydney.
The accounting challenges childcare & education face
We have seen these issues repeatedly — and know exactly how to resolve them.
Child Care Subsidy reconciliation
CCS payments arrive from Services Australia based on attendance and family entitlements. Reconciling CCS receipts against attendance records and fee statements is complex and must be accurate for compliance and cash flow management.
GST treatment for childcare services
Long day care, family day care, outside school hours care, and vacation care are generally GST-free. However, some additional services, meals, and late fees may have different GST treatment. Incorrect classification creates BAS exposure.
Staff payroll and super under the ECEC Award
The Children's Services Award sets minimum rates, allowances, and penalty rates for ECEC educators. Compliance with the award, correct classification of qualified vs unqualified educators, and Payday Super management all require careful attention.
Capital expenses and equipment
Childcare equipment, fit-outs, outdoor play areas and IT equipment all have specific depreciation treatment. Instant asset write-off rules and the threshold changes affect how and when these are claimed.
What we do for childcare & education
- Xero bookkeeping with CCS integration
- Payroll under Children's Services Award
- BAS / IAS preparation & lodgment
- Annual tax returns
- Cash flow management
- Business structure advice
- ATO correspondence
- Equipment depreciation planning
What you can expect
CCS receipts reconciled against attendance monthly
Payroll compliant with Children's Services Award
All GST classifications correct in every BAS
Equipment deductions maximised annually
Why childcare & education choose ANH Accounting
Start with a free 30-minute session
We review your situation, identify savings opportunities, and outline exactly what we can do for your childcare & education business — no charge, no obligation.
After hours & weekend appointments available
Common questions from childcare & education
Are childcare services GST-free?
Yes, most childcare services — including long day care, family day care, outside school hours care, and vacation care — are GST-free under the GST Act. This means you do not charge GST on your fees and cannot claim input tax credits on related purchases. Some additional services provided alongside childcare (eg meals sold separately, late pickup fees) may have different GST treatment. We review your fee structure and ensure correct classification.
How should childcare centres handle Child Care Subsidy payments?
CCS is paid directly from the Australian Government to approved providers via Services Australia. The amount is based on enrolled children's attendance, their family's entitlement, and your gap fee. CCS receipts must be reconciled monthly against attendance records and fee statements. We set up your Xero file to correctly capture CCS receipts and ensure your reports accurately reflect both your gross fees and the subsidy received.
What payroll obligations apply to childcare educators?
Childcare educators are covered by the Children's Services Award 2010. This sets minimum pay rates that differ based on qualifications (Certificate III, Diploma, or degree-qualified), allowances, and shift penalty rates. From 1 July 2026, superannuation must be paid on every pay run under Payday Super. We manage payroll compliance end-to-end and ensure award obligations are met.
Ready to get your accounting handled properly?
Book a free 30-minute session with ANH Accounting. We'll review your current situation, find opportunities, and tell you exactly what we can do for your childcare & education business.
Registered Tax Agent RN 26258346 · IPA · IFA · CPA · CA · Xero Certified · Est. 2018