NSW childcare fraud 'motivated by greed'

A NSW childcare director who bought a pool, expensive car and house with $3.6 million worth of fraudulently obtained federal government payments has spent her first night behind bars.

Melissa Jade Higgins fraudulently charged families a "ridiculous" $180 an hour, or around $9000 a week, per child for 14 at-risk children because she knew the government would pay under the Special Child Care Benefit.

The claims she made were false because the children did not attend the Albury centre on the dates claimed, the number of hours claimed were false or the hourly rate was more than she was permitted to claim.

On Friday, Downing District Court judge Donna Woodburne sentenced Higgins, who intends to appeal the sentence after applying for bail, but the matter was adjourned until Wednesday.

In her sentencing, Judge Woodburne said the 29-year-old was motivated by greed when she made the claims between September 2013 and March 2015.

"Ms Higgins intentionally abused a system designed to assist children in need," she said.

"She was motivated by greed.

"She has demonstrated a complete lack of contrition and I consider it appropriate the sentence reflect an increased need for personal deterrence."

Higgins, who maintains her innocence, made the claims on behalf of her Aussie Giggles childcare centre.

She bought an $87,000 car, a $30,000 pool and $740,000 house with the money, which was put into five bank accounts.

Higgins was sentenced to a maximum seven years, but will be eligible for parole in May 2021.