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# Gap Discounts (Prescribed)

# Gap Discounts (Prescribed) COMING SOON!

From **Monday, 7 Jul 2025**, the Department of Education outlines specific rules for managing third-party payments—contributions made by entities other than families—to help cover early childhood education and care (ECEC) fees. 
These rules ensure compliance with Family Assistance Law and maintain the integrity of the Child Care Subsidy (CCS) system.

|| For further information see: [Reporting Third-Party Payments](https://www.education.gov.au/early-childhood/providers/howto/manage-payments-fees/third-party-payments-discounts/prescribed-discounts)

### What is considered a **Gap Fee/Prescribed Discount**?

###### Third Party Payments

State and territory governments may contribute to some or all of a family’s **Gap** fee with **no impact on CCS** in the following circumstances:

A Prescribed Discount is a **Gap Discount** i.e. It reduces the gap **after** the Session Fee, Fee Discount and CCS Entitlement has been applied. 
This can also be in the form of a **Third-Party Payments**, such a **State Kindy Payment**.
* [Three-Year-Old Preschool, ACT](https://www.act.gov.au/education-and-training/early-childhood-and-preschool/free-three-year-old-preschool)
* [Start Strong Program, NSW](https://education.nsw.gov.au/early-childhood-education/operating-an-early-childhood-education-service/grants-and-funded-programs/start-strong-funding)
* [Early start kindergarten, VIC](https://www.vic.gov.au/early-start-kindergarten)
* [Free Kinder, VIC](https://www.vic.gov.au/free-kinder-english)
* [Free Kindy, Queensland](https://earlychildhood.qld.gov.au/grants-and-funding/kindergarten-funding)
* [Targeted Child Subsidy SA](https://www.education.sa.gov.au/working-us/service-providers/apply-non-government-preschool-providers-funding)

###### Additional Gap Discounts
* [ECEC Educator/Cook Discounts](https://www.education.gov.au/early-childhood/providers/workforce/support/discounted-care)
* [Provider discounts for a period of emergency](https://www.education.gov.au/early-childhood/providers/extra-support/emergency)

### Rules vs Direct Discount

| Type | Description |
| ---- |
| Amount/Percentage | Allows Discounts to be applied directly as required to specific bookings |
| Rules - Applied Weekly | Allows Discounts to be applied automatically |
| Rules - Discount applied Weekly with Period Limit | Allows a 'period total' discount limit for the "Discount by Weekly Gap" rule, so that weekly discounts can be applied to bookings without surpassing a predefined cap. |
| Rules - Applied Per Booking | Allows a Gap discount per booking, so that eligible bookings automatically receive the discount. |

###### Examples: 
1. [Gap Discount by Amount/Percentage (Direct)](#3-gap-discount-by-amountpercentage)
2. [Gap Discount by Rule (Automatic)](#3-gap-by-rule-automatic-example)
### Creating GAP Discounts (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)
### Gap Discount by Amount/Percentage

**This example will be for a ECEC Educator/Cook Discount**
4. Add the **name** of the discount
5. Select **Gap Discount**
6. Select the **Discount Category**
* 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 discoun**t (example below)
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1szb924.png)
7. Add in the **description** (This will appear on your Family invoices & statements)
8. Choose **Amount/Percentage** type
9. Set **Bookings from** date
10. **Set Discount type - $** or **%** and add amount e.g. **50%**
11. Select **Save**
|| **Option to lock the rate in or if ticked allow Users to change the % or $ discount up to the added amount, e.g. change to 35%**


![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_1jd8jo1.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_1c4fq69.png)
### Gap by Rule (automatic) example
1. Select Rules
2. Set **Bookings from** date (note cannot be backdated)
3. Select **Discount Rule** - In this example selecting **Per Booking**
* **Applied Weekly** - Automatically applied weekly to current bookings
* **Applied Weekly with Period Limit** - Automatically applied weekly upto the capped amount (great option for State Funding exc. QLD Kindy)
* **Applied Per Booking** - Automatically applied weekly for any bookings for the child (will pick up and apply to casual bookings as well)
4. **Set Discount type - $** or **%** and add amount e.g. **50%**
5. Select **Save**
![](https://storage.crisp.chat/users/helpdesk/website/-/5/d/c/b/5dcba586b1ba9400/image_s3c3vs.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/)