Business continuity payments for child care services in lockdown

As of 23 August, child care services will get business continuity payments during COVID-19 lockdowns.

Business continuity payments will be made to services in Commonwealth-declared COVID-19 Hotspots if:

  • the Commonwealth hotspot runs for more than 7 days and the state or territory government has limited who can access child care, or
  • the Commonwealth hotspot extends beyond 28 days.


Business continuity payments will be based on the service type.

Centre Based Day Care, Family Day Care and In Home Care services will get fortnightly payments of 25% of their pre-lockdown revenue calculated up to the hourly cap.

Outside School Hours Care (OSHC) and vacation care services will get separate fortnightly payments of 40% of their pre-lockdown revenue calculated up to the hourly cap.

Payments will be based on revenue in a specified fortnight before the lockdown.


Business continuity payments are contingent on services:

  • having reasonable expectations attendance will drop below 50%
  • not accessing other Commonwealth Government-funded business supports
  • waiving gap fees for all families whose children are not attending
  • maintaining staffing levels, and
  • agreeing to a fee freeze for the duration of business continuity payments.


This support will immediately benefit services in affected areas of Greater Sydney, Australian Capital Territory, and OSHC services in metropolitan Melbourne.

If current lockdowns continue, all other services in metropolitan Melbourne, regional Victoria and regional NSW will become eligible. Payments will be backdated to today.

We will write to services if they become eligible for a business continuity payment.

Further information on how payments will be made will be provided shortly.

Check key dates for business continuity payments in eligible regions.

Gap fees, additional allowable absences

Services in Commonwealth-declared COVID-19 Hotspots also may be able to waive gap fees and access additional allowable absences.

Business continuity payments are in addition to these measures.

More information

We regularly update our website with information about COVID-19 support for the early childhood sector.

Read the media release from Prime Minister Scott Morrison and Education Minister Alan Tudge.

This information was updated on 25 August 2021.