Childcare Centre Overcharged You? Letter of Demand for Fee Refunds

You have gone through the statements three times. The centre charged you for 5 days a week when your child was booked for 3. Or your Child Care Subsidy was not applied for two months and you paid full fees of $145 a day. Or you gave four weeks’ notice in writing and they billed you for eight. The total is $2,300, and every time you ask, the director says “I’ll get admin to look at it.”

Admin is not going to look at it. You are.

You are a consumer, and they are a business

Childcare is a service under the Australian Consumer Law. A centre cannot charge you for services not provided (section 62), and an invoice that does not reflect the enrolment you agreed to may amount to misleading conduct (section 18). If their enrolment agreement has terms that let them charge whatever they like or lock you into notice periods of two months, those are open to challenge under the unfair contract terms rules.

Government rules sit on top

Approved centres must comply with the Family Assistance Law and the Child Care Subsidy rules. That includes:

• Applying your CCS entitlement correctly and promptly
• Only submitting session reports for sessions actually delivered or genuinely booked (including permitted absences)
• Giving you accurate statements at least monthly
• Not charging for a session where the child was not enrolled

Submitting incorrect session reports to claim subsidy is a serious compliance issue for the centre. The Department of Education runs audits. Mentioning that you will report a discrepancy to the department’s tip-off line focuses the mind.

Work out the exact figure

Put it in a simple table. For each week: what you were charged, what you should have been charged, and the difference. Attach your enrolment form showing the booked days, and your Centrelink CCS letter showing your percentage.

Example: charged 5 days at $145 for 8 weeks = $5,800. Booked 3 days at $145 for 8 weeks = $3,480. Overcharge: $2,320.

Evidence

1. Signed enrolment agreement showing booked days
2. Every fee statement
3. Sign-in/sign-out records (you can request these)
4. Your CCS entitlement letter and your myGov “Child Care Subsidy” statements
5. Your written notice to withdraw, with the date it was sent

The Letter of Demand

Address it to the approved provider (the company that owns the centre), not just the director. Set out the calculation, cite the ACL and the Family Assistance Law, demand the overcharge within 14 days, and state that failing that you will file at the tribunal and lodge a report with the Department of Education.

Do not let them keep “looking into it.” Put a date on it.

Worried about your child’s place?

Many parents do not push because they fear losing their spot. A centre cannot lawfully cancel your enrolment as payback for a fee dispute; that would be a further breach and would look terrible in front of a tribunal. Keep it polite, keep it in writing, and keep dropping your child off as normal. The money is yours either way.

Claim Done drafts your Letter of Demand for $49. Done in about 5 minutes. You approve it before it is sent.