Date posted: 11/06/2020

Child care sector first to lose JobKeeper payments

Australia’s JobKeeper payments will cease for the child care sector from 20 July 2020 to ensure government support is appropriately targeted.

The child care sector will be the first sector to be weaned off JobKeeper payments.

With businesses reopening and schools resuming face-to-face to learning, the demand for child care has grown, with attendance currently at 74% of pre-COVID-19 levels.

In response, the Australian Government has announced that the Early Childhood Education and Care Relief package (announced in early April) will be turned off 12 July 2020 and the child care subsidy will resume.

JobKeeper payments will cease from 20 July 2020 for employees of a child care subsidy approved service and for sole traders operating a child care service to ensure government support is appropriately targeted.

The Government will instead pay child care services a transition payment of 25% of their fee revenue during the relief package reference period (17 February to 1 March 2020) from 13 July until 27 September 2020 to support the transition back to the child care subsidy system.

The last two payments scheduled for September will be brought forward to help with the transition and cash flow.

This additional transitional payment of A$708 million replaces JobKeeper and applies important conditions on childcare providers:

  • child care fees will remain capped at the level of the reference period
  • services will need to guarantee employment levels over the transition period to protect staff who will move off the JobKeeper payment.

The activity test for the child care subsidy will be eased until 4 October to support eligible families whose employment has been affect by the COVID-19 pandemic. The additional child care subsidy will also be available to help families that have lost work.

The Minister of Education's media release

As Australians return to their workplace, businesses re-open and children return to classroom learning, the Government will resume the Child Care Subsidy (CCS) to support families to access affordable child care.

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Relief package announcement in early April

Details of the Early Childhood Education and Care Relief Package

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The child care subsidy details

Child Care Subsidy (CCS) and Additional Child Care Subsidy will start again from 13 July 2020. From then, some families affected by coronavirus (COVID-19) will have access to more CCS.

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