COVID-19 Childcare Support to cease

Minister for Education, Dan Tehan, announced today that the temporary Early Childhood Education and Care Relief Package, introduced on 6 April, had done its job and would be turned off on 12 July.

From 13 July, the Child Care Subsidy (CCS) will return, along with new transition measures to support the sector and parents as they move back to the subsidy. In addition, JobKeeper will cease from 20 July for employees of a CCS approved service and for sole traders operating a child care service.

In addition to the CCS, the Government will pay child care services a Transition Payment of 25 per cent of their fee revenue during the relief package reference period (17 February to 1 March) from 13 July until 27 September. The last two payments scheduled for September will be brought forward to help with the transition and cash flow.

This additional Transition Payment of $708 million replaces JobKeeper and imposes some conditions on child care providers. For the period of the transition:

  • Child care fees will be capped at the level of the reference period (17 February to 1 March).
  • Services will need to guarantee employment levels to protect staff who will move off the JobKeeper Payment.

The Government will also ease the activity test until 4 October to support eligible families whose employment has been impacted as a result of COVID-19. These families will receive up to 100 hours per fortnight of subsidised care during this period. This will assist families to return to the level of work, study or training they were undertaking before COVID-19.