Child Care Relief Package Announced by Government to Assist Working Parents

On 2 April 2020, the Australian Government announced a Early Childhood Education and Care Relief Package with payments to be made directly to child care services and early childhood education operators, in lieu of the Child Care Subsidy and the Additional Child Care Subsidy, in order to ensure that childcare and early education centres remain open. The Relief Package is to due to officially commence on 6 April 2020.

As a result of the current COVID-19 epidemic, operators have seen a significant decrease in enrolments and attendance as parents withdraw their children from centres in fear of exposing their children to the virus, as well as financial uncertainty due to the increase in unemployment rates.

The Relief will ensure that the centres carrying out early childhood education and childcare services remain open for the children to attend and greatly assist working parents in particular.

What this means for you:-

1. Parents who are currently sending their children to child centres are able to continue to do so free of charge, or obtain a subsidy; and
2. For parents who have withdrawn their children from childcare and early childhood education centres and intend to re-enrol, services are able to waive gap fees payable by returning families.

However, there is are three factors which will determine a family’s level of Child Care Subsidy. See the Department of Education's Child Care Subsidy page and FAQ page to see whether you meet the eligibility test and to learn further information. Options are also available for parents who are currently studying/training, self-employed, looking for work and even volunteering, as well as other positions.

There is a range of government assistance available to early learning and childcare operators, which also includes:

• The $130 billion JobKeeper payment
• A cash flow boost of at least $20,000 and up to $100,000 with payments equal to 100 per cent of businesses’ and not-for-profits’ salary and wages withheld
• Loan guarantees so businesses can get working capital

The system will be reviewed after one month, with an extension to be considered after three months.

If you have any queries in relation to the above, please do not hesitate to contact Freedman & Gopalan Solicitors on 02 8917 8700 or send us an email at reception@freedmangopalan.com.au.