Sydney day-cares shut down for ripping off taxpayers

Dozens of daycares have been shut down after ripping off tax-payers by claiming children who do not exist were under their care.

The daycares had been providing incorrect records to the government and creating ‘phantom children,’ according to the Herald Sun.

A school in western Sydney was stripped of funding last year for billing taxpayers for children were overseas, the Daily Telegraph reported.

However, more than 70 per cent of the Victorian services that were suspended or cancelled had been previously signed off on.

Federal Education Minister Simon Birmingham said the government was ‘failing in its duty of care’ after allowing such operators to look after children.

One particular case showed a day care in Caroline Springs, Victoria, had claimed government assistance for nearly 1,500 days for educators who were overseas at the time.

But Mr Birmingham also said the government had tripled their checks and saved nearly $1billion, according to the Herald Sun.

It comes as the Victorian Government accused Canberra of failing to fund compliance checks in December 2016.

The day-cares had been providing incorrect records to the government and creating ‘phantom children,’ to receive government assistance (stock photo)

‘Essentially children [are] being paid for and hours being claimed for care that hasn’t actually happened,’ Victorian Children’s Minister Jenny Mikakos told the ABC last year.

‘Taxpayers’ money is being wasted by payments being made to ghost children, phantom children that aren’t in the family day care providers’ home.’

At that time Senator Birmingham had said compliance checks had increased six-fold, with 75 suspensions and 15 prosecutions.