Transition Payment for early childhood education and care providers

About the Transition Payment

From 13 July, all Child Care Subsidy (CCS) approved early childhood education and care providers can receive a Transition Payment to help them transition to back to CCS.

The Transition Payment will be made instead of the JobKeeper Payment, for the period 13 July 2020 to 27 September 2020. For more detailed information on JobKeeper eligibility please see Information for Child Care Subsidy approved providers.

The Transition Payment is 25 per cent of a services’ fee revenue or the existing hourly rate cap, whichever is lower, during the relevant reference period that has been used during the Relief Package. The Transition Payment will be paid as a grant under the Community Child Care Fund. 

A different Transition Payment rate will apply for services in metropolitan Melbourne. For more information see the COVID-19 restrictions and the Early Childhood Education and Care Sector webpage.

Conditions of the Transition Payment

To receive and maintain the Transition Payment providers must:

  • offer an Employment Guarantee by continuing to employ those employees over the transition period who were working or being paid JobKeeper at the end of the Relief Package
  • cap fees to the level in the relevant Relief Payment reference period
  • not claim JobKeeper for ineligible employees, or for themselves as JobKeeper eligible business participants.

These conditions are in place to protect staff who will move off the JobKeeper payment and help families who may be doing it tough. Please see the Transition Payment Guidelines for the eligibility requirements.

Grant offers

Providers began receiving emails from 17 June 2020 to offer an Australian Government Grant for the Transition Payment.

The department has established an online process, using DocuSign, for providers to review and agree to this offer.

If you haven’t accepted your grant offer, please accept via DocuSign as soon as possible. Offers will lapse on 31 August 2020.

For more information please see the Grant Agreement template with terms and conditions and Process for reviewing and submitting the Transition Payment Grant offer.

Resources

Transition Payment Guidelines

Grant Agreement template with terms and conditions

Process for reviewing and submitting the Transition Payment Grant offer

Transition Overview – Guide for Providers and Services

Information for Child Care Subsidy approved providers 

Information for Family Day Care and In Home Care providers 

Questions and answers

Will I receive the Transition Payment?

All CCS approved early childhood education and care service providers that previously received CCS, and new providers that were approved during the Relief Package period, that accepted their offer should receive the Transition Payment.

When will I receive the Transition Payment?

Transition Payments will be made each week, in accordance with grant agreements, and providers must ensure compliance with conditions of the agreement to maintain eligibility. The first weekly Transition Payments commenced on 17 July 2020.

Subject to when you accepted the Grant offer, the timing of your first weekly grant payment may have been affected. If providers have not done so already, you should accept the Grant offer as soon as possible. Offers will lapse on 31 August 2020.

What is the reference period fortnight used to calculate the Transition Payment?

The reference fortnight for the Transition Payment is the fortnight that was used to calculate each service’s baseline Relief Package payment. For most services, this fortnight commenced on 17 February 2020. If a different reference fortnight was used to calculate payments under the Relief Package, then the same reference fortnight will be used to calculate the Transition Payment.

My Grant offer is less than expected. Why?

Transition Payments are 25 per cent of the services’ fee revenue up to the hourly rate cap, in the relevant reference period, excluding any Exceptional Circumstance Supplementary Payment a service may currently be receiving.

The terms and conditions of the offer are non-negotiable and no changes will be entered into.

The 25 per cent Transition Payment is less than 50 per cent Relief Payment as it recognises that providers will once again receive CCS and Additional Child Care Subsidy (ACCS) payments on behalf of families, and parents will return to making their co-contribution (or gap fee) to child care fees. The Transition Payment is to maintain the viability of services, in order to support families as they return to the level of work, study or training they were undertaking before COVID-19.

A different Transition Payment rate will apply for services in metropolitan Melbourne. For more information see the COVID-19 restrictions and the Early Childhood Education and Care Sector webpage.

What if I haven't received my Grant offer? 

If you are a CCS approved provider that previously received CCS, or a new provider that was approved during the Relief Package period, and you haven’t received an offer yet, please check your junk/spam mail and your details in the Child Care Subsidy System.

If your details are not up to date, please update them in the Provider Entry Point (PEP) or third party software. The following need to be correct to receive your offer and for payments to be made:

  • Provider name
  • Provider email address
  • Service email address
  • Legal entity address
  • Service address
  • Bank details.

If you are a vacation care only service, you will have been paid your Transition Payment in the week of 7 July 2020 and will not receive a Transition Payment Grant offer.

If you need help, see the task card How to View and Update Organisation Details in the PEP or contact your software provider.

After you update your details please contact the CCS Helpdesk on 1300 667 276 or email at ccshelpdesk@dese.gov.au.

Can I decrease fees?

Yes. It is not considered a breach of the Transition Payment conditions if a provider decreases their fees. If a provider decreases fees for a set period of time and then needs to increase fees before the end of the transition period, they can do so as long as the revised fees do not exceed the fees specified in the Relief Payment reference period used to calculate their Transition Payment (for most services this was the fortnight starting 17 Feb 2020).

Can I increase administrative fees? E.g. bonds, or late fees? 

No. Providers receiving the Transition Payment should not be changing their service offering or increasing or adding new administrative fees.

The usual service offering generally includes consumable items such as meals, wipes, or art supplies as part of the cost of providing a session of care. For example, if nappies were included as part of the session fee your service usually provided, nappies should continue to be provided without any extra cost to families.

Some services also charge administrative fees. These fees do not form part of the session of care fee that a family’s Child Care Subsidy was calculated on, meaning that services can continue to charge administrative fees, for example, late pick-up fees. However, services are not to increase these fees while receiving the Transition Payments or add new ones that were not listed in a family’s Complying Written Arrangement.

Can I increase the fees for children attending under an Organisational Agreement or Relevant Agreement? 

No. As a condition of receiving the Transition Payments, services must maintain the same fees charged during the relevant reference period, until 27 September 2020. 

Are new services eligible for the Transition Payment? 

New services may be eligible for the Transition Payment where they have been in operation for more than two weeks before 27 September 2020. 

For a new service, the department will determine an appropriate reference fortnight to use for the calculation of the Transition payment. This will typically be the service’s first fortnight in which it receives CCS. OSHC services that first opened after 13 July 2020 are not eligible for the Additional Viability Support Payment.

What if I have a new service that was not included in the Grant offer?

New services approved for CCS on or after 13 July 2020 are eligible for the 25 per cent Transition Payment were not included in the initial grant offer. These services were dealt with separately and providers should have received a further offer with a variation containing Transition Payment details for these services.

What if my Grant agreement includes services that are unapproved or will be unapproved in the Transition Period?

Services that are no longer approved or cancelled post 9 June 2020 may have been listed in your Grant offers agreement. Services deemed to be ineligible under the Transition Payment Grant Guidelines will not receive Transition Payments after the date from which they are deemed ineligible.

Providers with multiple services, including those that may be deemed ineligible were encouraged to accept their offers to ensure unaffected services receive payments in a timely manner.

What happens if there is a change of ownership during the Grant agreement period?

If any service changes ownership during the course of the Grant agreement period, the grantee is responsible for informing the new owner of the grant agreement and obligations, and transferring any payments made to the former owner to the new owner, until arrangements can be made to commence payment to the new owner.

Transition Payments payable to providers during the transition period will not be adjusted to account for the transfer of services between providers (such as sale of a service by one provider to another). Any adjustment providers may make in transfer agreements for Transition Payments payable in respect of transferred services is a private commercial matter and the Commonwealth will not engage in any disputes between providers about such matters.

My service(s) delivers vacation care. Why haven’t I received my Transition Payment Grant offer for the vacation care service? 

Vacation care only services received an advance on their Transition Payment during the week of the 7 July 2020 and will not receive a Transition Payment Grant offer. This one-off payment, paid in the week of 7 July, covers two weeks of vacation care delivered between 13 July and 27 September 2020.

Was there a payment gap between the last payment under the Relief Package, the resumption of CCS/ACCS payments and the introduction of Transition Payments?

The last scheduled payment under the Relief Package occurred in the week commencing 29 June 2020. To help providers and services manage the transition period and to assist with cash flow, the last two Transition Payments scheduled for September 2020 were brought forward and paid as a one-off advance payment in the week commencing 6 July 2020.

Will there be any changes to Transition Payments for services is in Victoria?

All eligible services will continue to receive the Transition Payment.

A different Transition Payment rate will apply for services in metropolitan Melbourne. For more information see the COVID-19 restrictions and the Early Childhood Education and Care Sector webpage.

Do I need to stay open to receive the Transition Payment?

A condition of receiving the Transition Payment is that the service(s) stay open and continue to offer care, unless it has been directed to close by a relevant Commonwealth, state or territory government authority or health agency.

For more information on current restrictions see the COVID-19 restrictions and the Early Childhood Education and Care Sector webpage.

I have accepted the Transition Payment offer. Where else can I look for additional support?

Where can I get more information?

For more information on the Transition Payment, contact the CCS Helpdesk by emailing ccshelpdesk@dese.gov.au or calling 1300 667 276.

Last modified on [274|2442]