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# Gap Discount - State Funding

# Gap Discount - State Funding

Providers can offer discounted ECEC to some employees without reducing their CCS.

|| Find out more about here [discounted care for early childhood workforce.](https://www.education.gov.au/early-childhood/providers/howto/manage-payments-fees/third-party-payments-discounts/prescribed-discounts)

How the Gap Discount works:
* Is a [prescribed discount](https://www.education.gov.au/early-childhood/providers/howto/manage-payments-fees/third-party-payments-discounts/prescribed-discounts)
* Is applied after CCS calculation
* Will not reduce a family’s CCS entitlement
* Requires the employee to pay at least 5% of the gap fee.

###### Scenario

Jacob attends your service who charges **$100.00** for an 8hr session of care.
CCS% of **85%**, and normal Gap would be **$15.00**.
Jacob is eligible for State Funding contributions of **$12.50**. 
As this is a Gap Fee Discount, you don't need to reduce the Total Session/Fee of **$100.00** before reporting.
The family will still be eligible for the **$85.00** CCS Reduction and the new Gap of **$2.50** will be applied.


**Example calculation**
| **Description** | **Amount** |
| Session of care fee | $100.00 |
| Family CCS (85% of $100.00) | $85.00 |
| Gap Fee before State Funding Discount | $15.00 |
| State or Territory 3rd party payment for preschool children | $12.50 |
| **Family CCS after State or Territory 3rd party payment for preschool children** | **$85.00 no change** |
| **New Gap after Gap Discount** | **$2.50** |

### Actions:
1. [Create the Tag](https://help.xap.rocks/en/article/managing-tags-settings-screen-mbrh7p/)
2. [Apply the Tag to the selected child/ren](https://help.xap.rocks/en/article/kindy-tags-tbr3ft/)
3. [Create the state funding discount](#3-creating-a-state-funding-discount-prescribed)
4. [Directly apply if required](#3-applying-a-gap-discount-by-rule)

### Creating a State Funding Discount (Prescribed)


1. Select the **Discount Setup** icon from the **Settings** menu
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_gc2hrk.png)

2. Select the green **+Add** button
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_kfpdbm.png)

3. Select the **Centre** name
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_119l67x.png)

4. Add the **name** of the discount
5. Select **Gap Discount**
6. Select the **Discount Category** from the drop-down menu
* **State/Territory payment for preschool child**
* State/Territory payment for vulnerable or disadvantaged child
* State/Territory operated provider discount for preschool child
* Prescribed period of emergency
* ECEC Educator or cook discount

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_vp2tt6.png)

7. Add in the **description** (This will appear on your Family invoices & statements)
8. Choose **Rules** application type
| Rules apply automatically whenever a booking is created or changed and meets the Rule conditions. You only need to manually apply a Discount by Rule if the child now meets the Rule, but their booking hasn’t changed. **Example:** A Rule applies a discount based on a Tag. If the child has just been given that Tag, the Discount won’t apply automatically because the booking didn’t change. In this case, you will need to manually apply the Direct Discount.
9. Set **Bookings from** date
10. **Set Discount Rule** - Discount Applied Weekly

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_z24oxm.png)

11. Select the **Rule** to auto apply the State funding discount to, in this example **Child Tag**
12. Add **Additional Rules** as required eg. Selected, rooms, session/fees, days
13. Add in the **Discount** details
14. Select **Save**

### Discount Rule options

Rules can be configured against:
* Booking Start Date and Booking End Date
* Specific Children
* Children with Tags
* Children in a Kindy Program see: [State Funding - Creating a Kindy Program](https://help.xap.rocks/en/article/state-funding-creating-a-kindy-program-12jipwc/)
* Sessions
* Rooms
* Days
* Min # of Bookings
| Note: Rules apply automatically whenever a booking is created or changed and meets the Rule conditions. You only need to manually apply a Discount by Rule if the child now meets the Rule, but their booking hasn’t changed. **Example:** A Rule applies a discount based on a Tag. If the child has just been given that Tag, the Discount won’t apply automatically because the booking didn’t change. In this case, you will need to manually apply the Direct Discount.

**You are then able to specify a weekly or yearly amount**

* The discount will always be consumed starting from the first applicable bookings and will not exceed the Gap.
* The Discount will not necessarily be applied equally across all eligible bookings.
|| **e.g.** If the weekly limit is **$42.20** and there are **2** eligible bookings, if the child's Gap is $50.00, the first booking will have the full weekly discount of $42.20 applied and no discount will be applied to the second booking.

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1swar1r.png)

**Discounts screen will display the Type of Gap Discount & Category as well as how it will be applied.**

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_2u9ppm.png)

### Applying a Gap Discount - by Rule

| Rules apply automatically whenever a booking is created or changed and meets the Rule conditions. You only need to manually apply a Discount by Rule if the child now meets the Rule, but their booking hasn’t changed. **Example:** A Rule applies a discount based on a Tag. If the child has just been given that Tag, the Discount won’t apply automatically because the booking didn’t change. In this case, you will need to manually apply the Direct Discount see: [Applying a Direct Fee/Gap Discount](/en/article/applying-fee-gap-discounts-16um4cr/).


1. Select the **Bookings & Attendances** Screen from the left-hand menu.
2. Select the **Bookings** Tab
3. Select **Bulk Action**
4. Select **Apply Discounts** from the drop-down menu

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_128crxc.png)

5. Select **Gap Discount**
6. Select **Rules**
7. Add Bookings From & To Dates
8. Select the **Rule Filter** e.g. Child Tag
9. Apply **Additional Filter** options if required
10. Select **Save**

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_66nnkn.png)

| For more information regarding Discounts within Xap see: [Help Page - Managing Discounts within Xap](https://help.xap.rocks/en/article/help-page-managing-discounts-in-xap-1v0ej2s/)