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Transitioning from the Early Childhood Education and Care Relief Package

Written by Peter Ryan . June 16, 2020
2 min read

The Federal Government has recently announced the Early Childhood Education and Care Relief Package will be extended from 28 June to 12 July 2020, but from 13 July 2020, it plans to return to the Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS).

Gaining the most media attention was the announcement that JobKeeper payments to CCS approved services will cease from 20 July 2020.  Much speculation surrounds the potential early end to JobKeeper as a whole, though the Federal Government has consistently said the JobKeeper program will continue until 27 September 2020 as planned.  The recent Child Care industry announcement initially appeared to contradict this.  It is important to understand that a transitional support package was also announced to replace JobKeeper for the CCS approved services.

Below are details for this and the changes to JobKeeper for child care service employees and operators.

Arrangements for the Early Childhood Education and Care Relief Package end

  • The Early Childhood Education and Care Relief Package, originally due to cease on 28 June, has been extended until 12 July 2020, allowing providers to receive an additional two weeks of payment.
  • When the Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS) returns on 13 July 2020, transition measures will be introduced to support providers and families during the move back.

Transitional Support

  • All approved early childhood education and care services will receive a Transition Payment instead of the JobKeeper payment, for the period from 13 July to 27 September 2020.
  • Transition Payments are up to 25% of the service’s fee revenue from the reference period, or the existing hourly rate cap, whichever is lower. The relevant reference period for most services is the fortnight preceding 2 March 2020.
  • Services receiving Transition Payments must maintain the same fees charged during the reference period and the same average number of employees.

JobKeeper Details

  • JobKeeper will cease from 20 July 2020 for employees of a CCS approved service and for sole traders operating a child care service.
  • For education and care sector organisations that deliver a mix of approved child care and other services, that are not working in delivering a CCS approved service, their employees are still eligible for JobKeeper.

Family Transition

  • The activity test requirements will be eased from 13 July 2020 until 4 October 2020 for families impacted by COVID-19, who can no longer access the same number of activity hours as before.
  • Families will be able to access 100 hours of subsidised child care per fortnight during the 12 weeks, to assist families in returning to their previous level of activity.

For more information visit the Early Childhood Education and Care COVID-19 Frequently Asked Questions page.

If you would like assistance with this or other business questions please talk with us about your situation and find out if we’re the right fit for you. Our team at BLG Business Advisers are here to assist you.

*The above information was correct at the time of publishing and subject to change*
Written by Peter Ryan . June 16, 2020
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