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

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.

Additional Gap Discounts

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:

Gap Discount by Amount/Percentage (Direct)
Gap Discount by Rule (Automatic)

Creating GAP Discounts (Prescribed)

Select the Discount Setup icon from the Settings menu

Select the green +Add button

Select the Centre name

Gap Discount by Amount/Percentage

This example will be for a ECEC Educator/Cook Discount

Add the name of the discount
Select Gap Discount
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 discount (example below)

Add in the description (This will appear on your Family invoices & statements)
Choose Amount/Percentage type
Set Bookings from date
Set Discount type - $ or % and add amount e.g. 50%
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%

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

Gap by Rule (automatic) example

Select Rules
Set Bookings from date (note cannot be backdated)
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)

Set Discount type - $ or % and add amount e.g. 50%
Select Save

For more information regarding Discounts within Xap see: Help Page - Managing Discounts within Xap

Updated on: 23/01/2026

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