The temporary Early Childhood Education and Care Relief Package was introduced on 6 April and provided weekly payments (50% of CCS) made automatically and directly to early childhood education and care services in lieu of the Child Care Subsidy (CCS) and the Additional Child Care Subsidy, to help them keep their doors open and employees in their jobs. Families were not charged fees during this time. Payments were to be made until 28 June 2020 but were extended to 12 July and the payments complemented the JobKeeper Payment, also available to the centres.
From 12 July, the Care Relief Package will cease and, from 20 July, JobKeeper will cease for employees of a CCS approved service and for sole traders operating a childcare service.
From 13 July the Child Care Subsidy (CCS) will return and, from 13 July until 27 September, the Government will pay childcare services a Transition Payment of 25 per cent of their fee revenue during the Care Relief Package reference period (17 February to 1 March). Importantly, the last two payments scheduled for September will be brought forward to help with the transition and cash flow.
Free childcare is ending on 12 July, the 50 per cent “funding” that childcare centres receive will reduce down to 25 per cent and job keeper will end 20 July. In order to receive the 25 per cent funding, the centre needs to agree to an employment guarantee and not to increase their fees until the funding ends which is scheduled for around September.
The employment guarantee means that the childcare centre must guarantee the employment of all employees who were receiving JobKeeper, meaning they cannot make anyone redundant while receiving this funding and can only terminate in circumstances where there is gross misconduct or an employee loses their qualifications. Clarification has also been provided that JobKeeper will also end for cleaners, gardeners, cooks etc who are employed by childcare centres.
Businesses are reminded that there are several actions that can be taken to help relieve the financial burden of COVID ‑19.
If you have an EBA with an increase coming up you can make as 185 application to the Fair Work Commission to have the agreement varied to have this increase delayed under exceptional circumstances.
Click here for more information
An example of a case in which the Commission may be satisfied exceptional circumstances exist is where the agreement is part of a reasonable strategy to deal with a short-term crisis in, and to assist in the revival of, the enterprise of an employer covered by the agreement.
Return to Work SA decided that wage subsidy payments under the Commonwealth Government JobKeeper Program will NOT be considered remuneration for calculation of premium for 2020 – 21. This may provide your centre with further, unexpected relief.
For further information, the South Australian Business Chamber members can contact our FREE Business Advice Hotline on (08) 8300 0000 from Monday to Friday between 8:30am and 5:00pm. To learn more about the hotline, click here
