Almost $1 billion in taxpayer dollars destined for 151 dodgy family day-care centres has been stopped, after a six-month government crackdown on providers gaming the system.

Subsidies have been cancelled and suspended for rorting providers, with the blitz restoring integrity to the system and protecting taxpayers from potential rip-off.   

Federal Education Minister Simon Birmingham says the compliance overhaul is a big win for the taxpayer.

“People would expect a liberal government to be about making sure that taxpayer dollars are respected. In the end, every dollar is precious because it’s tax that someone is paid,” Birmingham tells Luke Grant.

“So we now conduct more than 4,000 checks a year. We have taken action against 151 different providers in a 6 month surge to make sure we clean up the system.”

“We’ve thrown the book at quite a few people. There are a number of prosecutions that have happened and we will continue to not just shut down and push out of business those doing the wrong thing, but where we can lay criminal charges, we will.”

A range of different malpractice forms have been detected through the blitz, ranging from exaggerating hours work to inventing children.

“At the extremes we get cases where they claim for children who don’t exist, children who weren’t there, children who were overseas at the time. You do get claims for higher fees then were actually charges and extended hours and sessions of care where the kids where only there for a part of the time. It’s a range of different areas.”

Almost $1 billion in taxpayer dollars destined for 151 dodgy family day-care centres has been stopped, after a six-month government crackdown on providers gaming the system.
Subsidies have been cancelled and suspended for rorting providers, with the blitz restoring integrity to the system and protecting taxpayers from potential rip-off.&nbsp;&nbsp;&nbsp;
Federal Education Minister Simon Birmingham says the compliance overhaul is a big win for the taxpayer.
&ldquo;People would expect a liberal government to be about making sure that taxpayer dollars are respected. In the end, every dollar is precious because it&rsquo;s tax that someone is paid,&rdquo; Birmingham tells Luke Grant.
&ldquo;So we now conduct more than 4,000 checks a year. We have taken action against 151 different providers in a 6 month surge to make sure we clean up the system.&rdquo;
&ldquo;We&rsquo;ve thrown the book at quite a few people. There are a number of prosecutions that have happened and we will continue to not just shut down and push out of business those doing the wrong thing, but where we can lay criminal charges, we will.&rdquo;
A range of different malpractice forms have been detected through the&nbsp;blitz, ranging from exaggerating hours work to inventing children.
&ldquo;At the extremes we get cases where they claim for children who don&rsquo;t exist, children who weren&rsquo;t there, children who were overseas at the time. You do get claims for higher fees then were actually charges and extended hours and sessions of care where the kids where only there for a part of the time. It&rsquo;s a range of different areas.&rdquo;

Join Phil O'Neil from midnight to 5.30am Tuesday to Friday.

Join Phil O'Neil from midnight to 5.30am Tuesday to Friday.

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