Published on April 6, 2020 6:02 am, by Jen Bakker
Updated: 8 June 2020
New Funding Arrangements for Childcare during the COVID-19 Pandemic
For the period 23 March 2020 until 6 April 2020
Under initial changes implemented by the Government Child Care Centres are able to waive out of pocket fees for children for the period between 23 March 2020 and 5 April 2020 where a Child Care Centre was open but the child didn’t attend because of COVID-19. It is a business decision for each Child Care Centre whether they charge families the gap fee for this period and whether thy refund any out of pocket fees already paid. If you pre-paid fees for this period you should contact your Child Care Centre.
For the period 6 April 2020 until 12 July 2020
The Government has changed how Child Care Centres are funded for the period 6 April 2020 until 12 July 2020. These changes are designed to ensure the Child Care Centres remain open and child care is available, especially for the children of essential workers and disadvantaged families.
Under the new arrangements the Government will pay a special subsidy to Child Care Centres in place of the normal Child Care Subsidy and Additional Child Care Subsidy.
As a result of this new subsidy parent will not be charged for child care including any out of pocket or gap fees.
The new arrangements are not means tested and parents don’t need to do anything other than ensure their child is enrolled, remains enrolled and attends the centre.
Parents of children whose enrollment has ceased are encouraged to re-enroll their children. Even Child Care Centres don’t need to do anything to arrange the new subsidy. It will be paid automatically from 6 April 2020.
On July 13 2020 the new subsidy will stop and the existing Child Care Subsidy and Additional Child Care Subsidy will resume.
Parents should continue to make sure they remain eligible for Child Care Subsidy and Additional Child Care Subsidy
For the period 13 July to 4 October 2020
There will be new transitional arrangements in place between 13 July 2020 and 4 October 2020. During this period parents that can no longer satisfy the activity test will be entitled to 100 hours of subsidised child care per fortnight per child. Parents can notify Services Australia of their eligibility for these transitional arrangements via myGove and their Centrelink online account.
There will also be additional transitional payments made to child care operators during this period.
Other you might need to know
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This summary has been prepared by MoneyBrilliant Pty Ltd (ABN 34 153 932 766, AFSL 492711, ACL 493068). The information in this summary is of a factual nature only. We are not suggesting or recommending that you take any particular course of action in relation to any financial product or service. It does not take into account your personal circumstances or objectives. If you need financial advice or taxation advice you should seek advice from a licensed financial adviser or tax agent. You may also be able to access additional information from the websites of the Australian Securities and Investment Commission (ASIC) and the relevant product providers.
Jen is an experienced banking professional who loves wine, coffee, finding a bargain and of course her three beautiful children. Since Jen's first budget led her to buy a home at 20, Jen has passionately helped others to make better decisions with their money.