Mark your calendars – the Child Care Subsidy (CCS) is making its long-awaited return on 13 July 2020.

However, this comeback will look slightly different from the CCS you knew – especially for Victorian families and providers.

Why? It’s all about the transition period and the continually evolving COVID-19 situation. With occupancy likely to decline as families and Services switch from the ECEC Relief Package (a.k.a ‘free childcare’ scheme) back to the CCS, the Federal Government has established a 12-week period of transition (from 13 July 2020 to 4 October 2020) to mitigate the risk. According to Think Managing Director and CEO, Mathew Edwards, this occupancy decline could be as high as 11%.

But wait, there’s more. On 7 July  2020, Minister for Education Dan Tehan announced additional measures specifically for those Services located in areas subject to Stage 3 COVID-19 restrictions. Currently, these measures only effect Services in metro Melbourne and Mitchell Shire, however as we have seen over the past 5 months, the COVID-19 situation can evolve and change quickly, so don’t be surprised if there are more changes ahead.

But for right now, with current demand reaching 74% across the sector, according to Mr Tehan, the Federal Government and sector are forging ahead with the return of CCS on 13 July 2020.

So, what does this mean for you, your families and your Service? It’s complicated and there’s a lot to take in, so we’ve unpacked it all below for you:

What this means for your Service from 13 July 2020

CCS is back

From 13 July 2020, families will once again be charged childcare fees and you’ll have the ability to recover the gap fee as usual (unless waived by the Service, in specific circumstances, for COVID-19 reasons). However, fees will need to remain capped. Services will not be allowed to increase fees to above reference period levels, change the service offering or add new administrative fees throughout the transition period.

Gap fees can be waived – but only for Stage 3 restricted areas

With the recent resurgence of COVID-19 within the state of Victoria, the Federal Government has announced that Services located within areas subject to Stage 3 COVID-19 restrictions are able to waive the gap fee for families if children are not attending for COVID-19 related reasons. Services will continue to be paid the CCS and families will be able to maintain their enrolment until they feel comfortable to return.

Session reports need to be submitted

Session reports and absences will need to be recorded and submitted – so don’t forget to add it back onto your weekly to-do list. Good news – you’ll also be able to amend session reports for periods prior to 6 April 2020.

A new Transition Payment will be available

In order to mitigate potential enrolment losses, due to families being unable to pay childcare fees once the ‘free childcare’ scheme ends, the Federal Government has introduced a new Transition Payment which will begin being paid weekly to Services from 13 July 2020 to 27 September 2020. It will be paid on top of CCS and Gap payments received from families and represent 25% of fee revenue during the relief package reference period, or the existing hourly rate cap, whichever is lower.

Haven’t received your Transition Payment Grant offer yet? Just follow this easy to understand guide.

Employment levels must be maintained

In order to receive the Transition Payment, Service Operators must guarantee that educator employment levels be maintained for the duration of the transition period. The Transition Payment is set to begin flowing the week before JobKeeper payments cease on 20 July 2020 to assist Services with this.

What this means for your families from 13 July 2020

Families have some work to do

To ensure that families receive the correct level of CCS, they have a range of tasks they need to complete by 12 July 2020 – more on that below.

Relaxation of the activity test

From 13 July 2020 to 4 October 2020 the activity test will be eased for families whose employment has been impacted as a result of COVID-19. If a family is no longer engaged in the same number of hours of work/study/training etc they were prior to the COVID-19 pandemic, they may be eligible for up to 100 hours of subsidised care per fortnight for up to 12 weeks.

Allowable absences will return to normal

Families will once again have 42 allowable absences per financial year. Families can receive CCS for absences up to seven days before a child’s first physical appearance at a service and seven days after a child’s last physical appearance to a Service where they have been booked in for care, for a set of predetermined reasons. This amendment will hopefully provide Services with a little more security around obtaining allowable absences under certain circumstances.

Family fees are capped

Services cannot raise fees, change their offering or add new administration fees for the duration of the transition period to “protect and relieve financial pressure on families that may be doing it tough under the current circumstances” said Mr Tehan.

Living under Stage 3 COVID-19 restrictions? Your gap fee can be waived

The Government will allow Services located in areas subject to Stage 3 COVID-19 restrictions, (currently metropolitan Melbourne and Mitchell Shire), to waive parent gap fees if children are not attending child care for COVID-related reasons from Monday 13 July.

So, what do families need to do prior to 13 July 2020?

The good news is that if a family was receiving CCS prior to 6 April 2020, it will automatically start again from 13 July 2020 – if they have remained eligible and their enrolment is current.

For Services, it’s all about ensuring families are ready for the return of the CCS, and most importantly receive the correct level of subsidy.

So, what should you ask families to do? We’ve created a simple list for families below to get them started.

• Log onto MyGov and check your activity hours! The Federal Government has relaxed the activity test requirements until 4 October 2020 to help families transition back to CCS. This is especially important for any family that may have experienced a reduction in their income as a result of COVID-19 as it could mean you’re eligible for a higher rate of subsidy from 13 July 2020.
• Ensure that your immunisation record is up to date for each child enrolled as this could affect your CCS. You can learn more about immunisation requirements here.
• Make sure that your enrolment details are up to date and if you need additional days, now is the time to request them.
• Make sure that you have provided Centrelink with your 2020-21 family income estimate to receive the correct CCS percentage and avoid an overpayment. No one likes a surprise bill.
• Make sure your billing details are up to date with the Service to ensure you don’t accumulate a debt.
• If you un-enrolled due to the COVID-19 pandemic – re-enrol now before you lose your spot!

What Services can do to be ready for the return of the CCS

With families taking a closer look at their enrolment, their requirements and their entitlements – and average sector occupancy currently sitting at 63% – now is a great time to take stock and look forward to how you can boost your occupancy and streamline your systems. So, what do we suggest?

• Stay informed. The situation surrounding COVID-19 can change overnight and the Federal and State Governments will continue to change with it to assist families. Make sure you continue to stay up to date with local and state changes to you, your Service, your family’s entitlements and your local restrictions.
• Accept your Transition Payment Grant offer – Having trouble? Simply follow this
• Start looking ahead – 2021 enrolments are just around the corner and will be here before you know it. What does your waitlist look like for 2021? Do you need to start developing a marketing campaign? Our in-house Marketing Team can help you here.
• How is your active and inactive debt ledger looking? Not great? With fees resuming, why not let our Accounts Team help you recover some of this debt before even more is incurred?
• Be prepared – your phone is about to start ringing with enquiries and questions from existing families. Why not create a cheat sheet for your team – you can bet that families are going to have a lot of questions. If you need additional support, why not get in touch with our Enrolments Team to help lighten the load?
• It’s a great time to clean up your inactive accounts – remove any aged or inactive accounts that have not had a booking in the last 2 years from your CCMS. That way, your system is clean and ready to go.
• Do you have any rolls or fees no longer being used? Get rid of them!
• Audit your emergency relief attendances from 6 April 2020 to 12 July 2020.

What’s next?

We know that’s a lot of information to take in, and a lot to get your head around – but you’re not alone. We’re here to help you navigate the continually evolving changes – and you can bet there will be a few more before the year is out.

Working with Xplor, QikKids or KidSoft our team can provide extensive administration support to your Service and help you navigate this transition period.

Acting as your own personal administration team, we can provide phone and email support to:

• Enter new enrolment form data and provide an overview of missing documentation
• Submit attendance, ensuring all times and child attendances are marked correctly
• Make changes to any booking, sending a confirmation of the changed enrolment to a family, while informing the Service Director
• Walk families through the process of applying for CCS or ACCS to alleviate pressure from Service staff
• Mark rolls and ensure absences are marked
• Send weekly statements to families
• Assist with entering manual payments or uploading required payments
• Audit family accounts to ensure they are maximising their CCS entitlements
• Provide a weekly debtors report overview to ensure that they can be followed up quickly and efficiently
• Deep dive in to your software system to ensure you are set up for success

Give yourself more time to focus on your Service, team and families.

Managing Director Jane Monaghan is always available to chat. Why not give her a call to discuss how we can help you on 02 8123 2300?

This information is current as at 10 July 2020.

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