Articles on: Discounts

Gap Discounts - NSW Start Strong Funding

The 2026 Start Strong for Long Day Care program provides funding to deliver affordable, quality preschool education to children aged 3 and above who are enrolled in eligible long day care services in NSW. 


To view further information about the Start Strong program see: NSW Government - Start Strong & 2026 Start Strong for LDC guidelines


In 2026, there will be two categories of Fee Relief Payment:


  • Children eligible for the maximum fee relief rate can receive up to:
    • $2,563 per year for children aged 4 and above
    • $769 per year for children aged 3 years old
  • All other children can receive up to:
    • $1,783 per year for children aged 4 and above
    • $423 per year for children aged 3 years old


For example, when creating the Discounts for the weekly reduction, consider:


Your service is open 50 weeks a year, you will pass on a reduction of:


  • up to $51.26 each week for children who are at least 4 years old on, or before, 31 July 2026
  • up to $15.38 each week for children who are 3 years old and not yet 4 years old on, or before 31 July in 2026.


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 NSW Funding Gap Discount


  1. Apply Child Tag's e.g. 4YO Kindy Funding 2026
  2. Setup Gap Discounts by Rules either by:
  • a. Weekly Application
  • b. Weekly Application with Yearly Cap

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


Step 1: 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.

  1. Apply Filters as required, to identify the child/ren, in this example by Age, Room & Bookings from details.
  2. Select Update Search



  1. Select the child/ren
  2. Select Bulk Action
  3. Select Add Tag



  1. Select/Create the required Tag
  2. Select Save



Step 2a: Create the Gap Discounts- Apply Weekly


  1. Within the Settings screen, select the Discount Setup icon

  1. Select the Green + Add button

  1. Select the Centre name if you are in Enterprise mode
  2. Add the Discount name
  3. Select Gap Discount
  4. Select the Discount Category
  5. Add a Description
  6. Select Rules
  7. Set Bookings from Date, a Bookings to Date can be added if required. You can set them up by term. (For 2026, this allows you of time as they only need it ready by the start of Term 1).
  8. Select the Discount Rule as Discount applied Weekly


  1. Select the filters to automatically apply the Discounts to, e.g., Child Tag - NSW 3YO Kindy 2026
  2. Additional Filters can be applied to refine who the Discount is applied to. For example, the Kindy children are in specific rooms. e.g Kindy children are grouped into 3–5 Kindy or 4–6 Prep.
  3. Select the Day/s the Children can be booked to apply the Discount (if applicable)
Note: If you are using the Kindy Programs screen, ensure the days selected match your Kindy program days.
  1. Leave Bookings at least section blank
  2. Add the Discount amount
  3. Leave up to bookings blank
  4. Select Save


Step 2b: Create the Gap Discounts - Apply Weekly with Yearly/Period Cap

Repeat steps 1-9 as per prior example
  1. Select Discount applied with Period Limit
  2. Select the filters to automatically apply the Discounts to, e.g., Child Tag - NSW 4YO Kindy 2026 Cap
  3. Additional Filters can be applied to refine who the Discount is applied to. For example, the Kindy children are in specific rooms. e.g Kindy children are grouped into 3–5 Kindy or 4–6 Prep.
  4. Select the Day/s the Children can be booked to apply the Discount (if applicable)
Note: If you are using the Kindy Programs screen, ensure the days selected match your Kindy program days.
  1. Leave Bookings at least section blank (if applicable)
  2. Add the Discount amount
  3. Leave up to bookings blank (if applicable)
  4. Add in the Yearly/Period Cap for the discount
  5. Select Save



New South Wales Fee Relief State Funding on Family Statement


Statement screen



Downloaded Statement


Downloaded Statement -Summary page


Downloaded Statement -Discount Breakdown page



New South Wales Fee Relief State Funding on Bookings


Bookings Screen



Discount view per booking



For further information regarding discounts see: Help Page - Managing Discounts in Xap

Updated on: 06/02/2026

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