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# Gap Discounts - ACT Preschool Funding

# Gap Discounts - ACT Preschool Funding

The **2026** ACT Preschool Funding program provides funding to deliver affordable, quality preschool education to children aged 3 and above who are enrolled in eligible long day care services and reside in the ACT. 
More than 140 early childhood education and care services across Canberra deliver the program. These are known as [partner providers](https://www.act.gov.au/education-and-training/early-childhood-and-preschool/free-three-year-old-preschool/partner-providers-for-free-3-year-old-preschool).
|| To view further information about the Start Strong program see: [Free 3-year-old preschool](https://www.act.gov.au/education-and-training/early-childhood-and-preschool/free-three-year-old-preschool) and [4-year-old preschool](https://www.act.gov.au/education-and-training/early-childhood-and-preschool/4-year-old-preschool)

### 3 year old program:

* 6 hours per week over 50 weeks, or
* 7.5 hours per week over 40 weeks.
* Up to **300hrs** per year of free preschool (any additional hours that a child attends the service will be covered by standard subsidy).
A child needs to be enrolled in a participating service (partner provider). The free preschool time is then delivered as part of the day.

### 4 year old program:

* up to **15 hours a week** of free coverage
* some do 2 days one week and 3 days the next. 
* Other preschools offer 2 and a half days a week

### How fee relief will work with the Child Care Subsidy

The different level of payment per child in long day care services recognises that most families in long day care services are eligible to receive the Australian Government’s Child Care Subsidy (CCS).

||| The CCS does not apply to **community and mobile preschools or Department of Education preschools**.

### Creating the ACT Funding Gap Discount
### Recommended Actions

1. [Calculate required Gap discount amounts](#3-step-1-calculate-the-act-gap-discount)
2. [Apply Child Tag's e.g. 4YO Kindy Funding 2026](#3-step-2-applying-tags)
3. [Setup Gap Discounts by Amount/Percentage](#3-step-3-create-the-gap-discount)
4. [Apply the Discount](#3-step-4-apply-the-discount)
 
| Note: It is important to add the child Tags on prior to creating a Discount by Rule, to allow the Discounts to automatically be applied. If the Tags are added on AFTER the discount is created, use the direct apply discounts for the child/ren. see: [Apply Direct Discounts](https://help.xap.rocks/en/article/applying-fee-gap-discounts-16um4cr/)

### Step 1: Calculate the ACT Gap Discount

Depending on how many hours your Kindy program runs for, this process will assist you with calculating the amount of funding for your Service/Per child.
Items to consider:

* Daily Kindy program hours 
* Total session hours e.g. 12hr, 10hr etc.

Example: 
* Total session hours = 10
* Total fee charged = $150.00 / 10hrs
* Hourly fee charged = $15.00
* Total Kindy Program hours = 7.5
Total Kindy hours x Hourly Fee = $112.50 **Total Weekly 15hr** Kindy reduction
|| Note: To assist you further with the calculations, see: [ACT/SA Kindy Funding report](https://help.xap.rocks/en/article/actsa-kindy-funding-report-14koehf/?bust=1781245994628)
###### Scenario 1
Your Service provides a **10hr session** for children, and the Kindy program runs **7.5hr** per day.

|  |  | Session Hours | Fee | Program Hours | Current Gap | Hourly Gap | Program Gap | % Gap Discount |
| ---- |
| Original | Child 1 | 10 | $150 | 7.5 | $50 | $5 | $37.50 | 75% |
| Gap decreased | Child 1 | 10 | $150 | 7.5 | $45 | $5 | $33.75 | 75% |
| Gap increased | Child 1 | 10 | $150 | 7.5 | $55 | $6 | $41.25 | 75% |

###### Scenario 2
Your Service provides a **12hr session** for children, and the Kindy program runs **7.5hr** per day.

|  |  | Session Hours | Fee | Program Hours | Current Gap | Hourly Gap | Program Gap | % Gap Discount |
| ---- |
| Original | Child 2 | 12 | $150 | 7.5 | $50 | $4 | $31.25 | 62.50% |
| Gap decreased | Child 2 | 12 | $150 | 7.5 | $45 | $4 | $28.13 | 62.50% |
| Gap increased | Child 2 | 12 | $150 | 7.5 | $55 | $5 | $34.38 | 62.50% |

### Step 2: Applying Tag's

Tags are a powerful way to identify specific children and scenarios within Xap. They provide flexibility for organizing information and can be used as filters in reporting. 
Additionally, tags can be applied to manage **discounts**, making them a useful tool for both administration and billing.

###### To apply Tag's

1. From within your Families Screen, select the **Children** Tab
2. Select the **Filter** icon
| Note: For children attending multiple centres or with split families, remove the standard tag and apply a specific tag then use **direct discount** instead.
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1n4b44o.png)
3. Apply **Filters** as required, to identify the child/ren, in this example by Age, Room & Bookings from details.
4. Select **Update Search**

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_r01vcn.png)

5. Select the **child/ren**
6. Select **Bulk Action**
7. Select **Add Tag**

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1odgmtb.png)

8. **Select/Create** the required Tag
9. Select **Save**

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_yx3zfx.png)

### Step 3: Create the Gap Discount

The recommendation would be to create the Gap Discount as an Amount/Percentage, this will allow you to:
* Apply this directly to the bookings
* Can be done in bulk and in advance
* This means you don't need to create discount configurations for each child and then change them when entitlements change.

1. Within the **Settings** screen, select the **Discount Setup** icon
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1a6cblg.png)
2. Select the Green **+ Add** button
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_flqr5y.png)
3. Select the **Centre name** if you are in Enterprise mode
4. Add the **Discount name**
5. Select **Gap Discount**
6. Select the **Discount Category**
7. Add a **Description**
8. Select **Amount/Percentage**
9. Set Bookings **from Date**, a Bookings **to Date** can be added if required.
10. Add the **% discount** (add in a maximum default percentage e.g. 80%)
11. Tick **Staff members can apply a discount up to the set amount/percentage** to allow the same discount to be re-used for different %'s or leave unticked to create a locked template.
| Note: By adding in e.g. 80% for the discount amount, and ticking the staff member option, this will allow you to use the same Gap Discount for multiple children and apply the correct % discount as required. If you prefer, then you can choose to create multiple individual ACT Gap Discount templates for a locked % Discount amount.


![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1lotkto.png)

### Step 4: Apply the Discount

Search on the child/ren via the Bookings screen by the e.g. ACT Tags
* Bulk Action
* Apply Discounts
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_zj9n3b.png)
* Select Gap discount
* Select the required Discount name
* Select the filters for adding the discount eg. Child Tag
* Save
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1a6f7ih.png)



| For a further breakdown see: [Applying Direct Discounts](https://help.xap.rocks/en/article/applying-fee-gap-discounts-16um4cr/?bust=1768339735722)

### ACT State Funding on Family Statement

###### Statement screen

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1cxj8pz.png)




###### Downloaded Statement

###### Downloaded Statement -Summary page

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_5rumqw.png)



###### Downloaded Statement -Discount Breakdown page

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_16a1axm.png)


### ACT State Funding on Bookings

###### Bookings Screen
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_12w36tl.png)



###### Discount view per booking

![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1oqqsvy.png)

| For further information regarding discounts see: [Help Page - Managing Discounts in Xap ](https://help.xap.rocks/en/article/help-page-managing-discounts-in-xap-1v0ej2s/?bust=1761797837195)