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New Child Care Package – how does it affect your Service?

New Child Care Package – how does it affect your Service?

Childcare PackageThe Federal Government has announced a New Child Care Package that aims to support children of essential workers and vulnerable children with child care during the COVID-19 pandemic.

This package will also deliver a level of relief and assistance to the Early Childhood Learning and Care sector so that providers are able to continue to operate and support their Educators.

Details continue to be released and we have compiled the major points for you below as well as some resources you might find useful.

  • In lieu of CCS payments, the government will be paying a Business Continuity Payment (BCP) to childcare service providers from April 6, 2020 in a lump sum payment. No Child Care Subsidy (CCS) or Additional Child Care Subsidy (ACCS) will be paid from April 6, 2020 onwards.
  • This payment will be equal to 50% of the hourly rate cap for all fees charged during the fortnight prior to 2 March (17.2.20 to 28.2.20), regardless of whether or not children attended the Service.
  • This payment will be paid into your Service bank account. This is the same bank account that Child Care Subsidy is currently paid into.
  • This New Child Care Package will come into effect from 6 April 2020 until the week ending 28 June 2020. It will then be reviewed and may be extended for an additional 12-week period.
  • In order to receive the payment you must:
    • Stay open, with at least one active enrolment, unless closed on public health advice or for other health and safety reasons
    • Ensure families are not charged a fee, including an out of pocket or gap fee
    • Prioritise care to essential workers, vulnerable and disadvantaged children and previously enrolled children
    • Record attendance. Providers will not be able to upload session reports to the Child Care Subsidy System during this period however, must continue to keep attendance records while the payments remain active.
    • Comply with all other provider obligations including National Quality Framework and other relevant conditions of approval under Family Assistance Law.
  • To support families and the sector, you are able to formally waive out of pocket fees for families where your Service remained open, but children did not attend for COVID-19 reasons. This change is in effect from 23 March 2020. Until 5 April 2020.

Additional resources you might find useful:

Where to from here?

Details of this package continue to be released and it is important to ensure that you have all the information in order to make the most informed decision for Services.

We’re here to help you navigate this new package and determine the best way forward for your business and Services.

Why not give Managing Director Jane a call to discuss all your options – 02 8123 2300.

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