Transition arrangements for the end of the Early Childhood and Care Relief Package

As Australian families begin to return to school, the workplace, and re-open businesses, the Government has announced its plan to return to the Child Care Subsidy and Additional Child Care Subsidy to support families to access affordable child care from 13 July 2020.

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Minister for Education Dan Tehan has now announced that the Early Childhood Education and Care Relief Package will be extended until 12 July 2020 to keep services viable and to provide care for families of essential workers and vulnerable children. This decision follows the Four Week Review of the Relief Package and extensive sector-wide consultations.

From 13 July 2020, Child Care Subsidy (CCS) and Additional Child Care Subsidy (ACCS) return, along with new transition measures to support the sector and parents as they move back to the subsidy. To ensure Government support is appropriately targeted, JobKeeper will cease from 20 July 2020 for employees of a CCS approved service and for sole traders operating a child care service.

All approved early childhood education and care services will receive a Transition Payment, instead of JobKeeper Payment, for the period 13 July 2020 to 27 September 2020. The Transition Payment is 25 per cent of fee revenue or the existing hourly rate cap, whichever is lower, in the relevant reference period that has been used during the Relief Package.

In addition, the activity test requirements will be eased from 13 July 2020 for 12 weeks, for families impacted by COVID-19, who can no longer access the same number of hours as before.

During this period, impacted families will be able to access up to 100 hours per fortnight of subsidised care. This will assist families to return to the level of work, study or training they were doing before the COVID-19 crisis, or to do more than before.  

Details of the Minister’s announcement can be found in his media release.

For more information, go to the Early Childhood Education and Care COVID page.  This will continue to be updated.