School and Childcare Enrolment Contracts: A Term’s Notice, Fees in Lieu and Non-Refundable Fees (Australia, 2026)

Prepared by Claim Done from the Australian Consumer Law, the family assistance legislation and Child Care Subsidy rules, the Education and Care Services National Regulations, a published ACT Civil and Administrative Tribunal decision, and the Services Australia and Department of Education pages listed under Sources. Last checked 8 November 2026. We found no ACCC or state regulator guidance on private school notice periods or enrolment fees on that date.

Enrolment contracts at a glance

Do I have to pay a term’s fees if I withdraw my child from a private school?

Only if the enrolment contract says so, and even then the clause can be tested under the unfair contract terms law. A private school enrolment is a contract for services to the parents, and “services” includes “instruction” (ACL s 2). Where it is a standard form contract, an unfair term is void (s 23(1)), and for contracts made or renewed from 9 November 2023 proposing or relying on one is also a contravention.

A term is unfair only if it causes a significant imbalance, is not reasonably necessary to protect the school’s legitimate interests, and would cause detriment (s 24(1)). The school must prove the term is reasonably necessary (s 24(4)). Two of the law’s examples matter most here: a term that “penalises, or has the effect of penalising, one party (but not another party) for a breach or termination of the contract” (s 25(c)), and a term that lets one party vary the upfront price without the other being able to terminate (s 25(f)).

The fee schedule you agreed to is the upfront price and cannot be challenged as unfair. But a charge that is “contingent on the occurrence or non-occurrence of a particular event”, such as withdrawing without notice, is not part of the upfront price (s 26(2)), so it can be reviewed.

The ACAT decision on a school’s notice clause

In Brindabella Christian Education Ltd v Respondent XD [2022] ACAT 37, the ACT Civil and Administrative Tribunal considered a clause requiring one full term’s written notice, or a full term’s fees. Notice received after the first day of term made the parents liable for that term and the next. The tribunal ordered that the notice term “is void as unfair pursuant to section 23(1) of the Australian Consumer Law.”

• Consumer contract: the tribunal treated the enrolment as a contract for services to the parents for their children.
• Significant imbalance: combined with terms letting the school vary fees and policies by publication, the notice term let the school alter the price without giving parents a matching right to leave.
• Transparency: the contract did not make clear that it rolled over from year to year.
• Not always unfair: the tribunal accepted that one term’s fees “may be a reasonable estimate” of a school’s loss in principle, and that notice for mid-year withdrawal could still be reasonable.

This is one tribunal decision on its own facts, under the earlier version of the law (void only, no penalty). It is not binding precedent and does not guarantee the same result for your contract. What it shows is the combination to look for: a term’s notice or fees, plus a one-sided right to change fees or policies “from time to time”.

Is a non-refundable enrolment fee legal?

We found no law, and no ACCC or state regulator guidance, that deals specifically with non-refundable application, enrolment, building or capital fees, or confirmation deposits. They are contract terms. Two rules from the Australian Consumer Law help you read them:

• The upfront price disclosed when you sign cannot be challenged as unfair (s 26).
• Amounts that depend on an event, such as a fee forfeited if you withdraw, are not part of the upfront price and can be tested under the unfair terms law (s 26(2)).

Before you pay, ask in writing what each fee is for, when it becomes non-refundable, and whether any of it comes back if the school cannot offer the place or you withdraw before the start date.

Childcare notice periods: why the last day matters

Child Care Subsidy (CCS) changes what you actually pay during a notice period. Services Australia says: “We generally won’t pay CCS for any absences before your child physically attends or after the last day your child physically attends child care. You’ll need to pay full fees for these days.” The Act limits subsidised absences to days after the child first attended and not after the last day attended (A New Tax System (Family Assistance) Act 1999 s 10(2)(b)).

• Leaving: if the centre requires two or four weeks’ notice and your child stops attending before the notice ends, the remaining days are generally charged at full fees with no CCS. A holiday is not an approved reason. Time the last day of attendance to match the end of the notice period.
• Starting: paying to hold a place before your child first attends also means full fees for those days.
• Exceptions: up to 6 days before the first or after the last attendance can be covered for listed reasons, such as illness, a change of service ownership or a family tragedy (Child Care Subsidy Minister’s Rules s 5B).
• Long absences: enrolment ends once “14 weeks have passed since the child last attended” (Family Assistance Administration Act s 200B(1)(b)).

Childcare absences, closures and fee changes

• 42 absence days a year. “You can get up to 42 allowable absence days per child each financial year”, for any reason including holidays, with no evidence needed (Services Australia; FA Act s 10(2)(c)). Beyond that, CCS is paid only for listed reasons, and illness needs a medical certificate (s 10(3)-(4)).
• Closures. Services cannot claim absences when the service is closed, except on a public holiday or during a period of emergency (Department of Education). A contract charging fees during a Christmas closure means full fees for those days.
• Fee increases. The provider must notify parents “at least 14 days before making any change that will affect the fees charged or the way in which fees are collected” (National Regulations reg 172(2)).
• Passing on CCS. The provider must pass on the CCS fee reduction no later than 14 days after it is notified (FA Administration Act s 201A). 5% of a family’s CCS is withheld (Minister’s Rules s 40A).
• Gap fees. The provider must take all reasonable steps to collect the gap fee, by electronic funds transfer (s 201B). A promise to waive the gap or take cash is a red flag.
• Written arrangement. The enrolment must be a complying written arrangement that sets out the parties, the child, the usual days and times, and fee details that clearly establish a liability to pay; otherwise CCS eligibility is at risk (Secretary’s Rules s 9).
• 3 Day Guarantee. Since 5 January 2026, at least 72 subsidised hours a fortnight (100 for more than 48 hours of recognised activity). It sets hours; it does not guarantee a place.

Enrolment contract red flags

1. A term’s notice or a term’s fees, combined with the school’s right to change fees, policies or the handbook “from time to time”.
2. A notice deadline on the first day of term that makes you liable for two terms.
3. A contract that rolls over each year without saying so.
4. Non-refundable fees with no explanation of what they cover or when they are forfeited.
5. One-sided rights for the school or centre to terminate or exclude, with no matching rights for you.
6. A clause excluding liability for the quality of care or teaching, or refusing refunds in all cases. The consumer guarantees cannot be excluded (ACL s 64).
7. Childcare fees for closures, or a notice period you cannot cover with attendance.

What our review checks

Upload the enrolment agreement and fee terms and get a plain-English report written for the parent, usually about 5 minutes after you pay. It:

• puts the notice period, fees in lieu of notice and any non-refundable deposits at the top, in dollars
• quotes and tests each notice, variation, termination and withdrawal-fee clause against the unfair terms examples
• flags the “change fees and leave nothing” combination the ACT tribunal found unfair
• for childcare, works out the days you would pay at full fees: before the first day, after the last day, closures and absences beyond 42
• checks the childcare agreement against the complying written arrangement rules and the 14-day fee change notice
• flags clauses that try to exclude the consumer guarantees
• tells you which policies and handbooks to ask for before you sign

For each flagged term the report says why it may be unfair; only a court or tribunal decides that. It is not legal advice. You decide what to sign.

Get your enrolment contract reviewed – $29

Questions people ask

Do I have to give a term’s notice or pay a term’s fees to a private school?

Only if your enrolment contract requires it, and that clause can be challenged as unfair. In 2022 the ACT tribunal declared one school’s one-term notice clause void, mainly because the school could also change fees and policies without giving parents a right to leave. That decision is not binding elsewhere.

Can a school charge fees in lieu of notice?

A school can include the term, but it is not automatically enforceable. Fees triggered by withdrawal are not part of the upfront price, so in a standard form consumer contract they can be tested under the unfair terms law, and the school must prove the term is reasonably necessary.

Is a non-refundable enrolment fee legal?

We found no law or regulator guidance dealing with it specifically, so it is a contract term. The upfront price cannot be challenged as unfair, but an amount forfeited because of an event, such as withdrawal, can be. Ask in writing what the fee covers and when it becomes non-refundable.

What is the notice period for leaving childcare?

It is set by your centre’s contract and fee policy, so read it before you sign. The cost depends on attendance: CCS is generally not paid for absences after your child’s last day of attendance, so notice days after that are charged at full fees.

Do I pay full fees during my childcare notice period?

Yes, for any notice days your contract charges after your child stops attending. Services Australia says CCS is generally not paid for absences after the last day your child physically attends, and a holiday is not an approved reason. Keeping your child attending until the notice ends avoids this.

Do I pay fees to hold a childcare place before my child starts?

Usually yes, and at full fees. CCS is generally not paid for absences before your child first physically attends, unless a listed reason applies within 6 days of the first attendance.

How many absence days does Child Care Subsidy cover?

42 allowable absence days per child each financial year, for any reason including holidays. Beyond 42, CCS is paid only for listed reasons, such as illness with a medical certificate.

How much notice must a childcare centre give before raising fees?

At least 14 days. The Education and Care Services National Regulations require parents to be notified at least 14 days before any change that will affect the fees charged or how they are collected (reg 172(2)).

Does unfair contract terms law apply to schools?

It applies to standard form consumer contracts, and a tribunal has treated a school enrolment as one. Whether a particular school or not-for-profit centre acts “in trade or commerce” can depend on the facts.

Can a school or childcare centre exclude liability for the quality of care?

No. Services supplied to a consumer must be rendered with due care and skill, and a term is void to the extent it excludes or limits the consumer guarantees (ACL ss 60, 64).

If a term is void, do I get my money back automatically?

No. A void term cannot be enforced against you, but recovering money already paid under it needs a separate claim.

Is the enrolment contract review legal advice?

No. It is a plain-English report that explains your enrolment agreement, what leaving would cost, and what to ask the school or centre. Claim Done is not a law firm.

Related guides

• Private school won’t refund fees after you withdrew?
• Childcare fees dispute? How to get your money back
• Childcare centre won’t refund your bond or keeps charging after you left
• How the unfair contract terms law works

Claim Done is not a law firm and does not give legal advice; this page is general information about Australian law as at 8 November 2026. Whether a contract term is unfair is for a court or tribunal to decide.

Sources (checked 8 November 2026)

• Competition and Consumer Act 2010 (Cth), Schedule 2 (Australian Consumer Law), Compilation No. 167 (ss 2, 3, 23-27, 60-62, 64, 267-269)
• A New Tax System (Family Assistance) Act 1999 (Cth), Compilation No. 124 (s 10; Sch 2 cll 11-12)
• A New Tax System (Family Assistance) (Administration) Act 1999 (Cth), Compilation No. 132 (ss 67EB, 200A, 200B, 201A, 201B)
• Child Care Subsidy Minister’s Rules 2017, Compilation No. 53 (ss 5B, 40A)
• Child Care Subsidy Secretary’s Rules 2017, Compilation No. 8 (s 9)
• Education and Care Services National Regulations, as applied in WA (as at 1 November 2026) (regs 168, 172)
• Brindabella Christian Education Ltd v Respondent XD [2022] ACAT 37
• Services Australia: if your child is absent from child care
• Department of Education: how to manage payments and fees
• Department of Education: collecting gap fees
• Department of Education: 3 Day Guarantee