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PM announces childcare stimulus to keep businesses running

Adrian Flores
Adrian Flores
05 August 2020 1 minute readShare

Prime Minister Scott Morrison has allocated an extra $33 million for childcare services in Victoria to keep their doors open for vulnerable families and keep essential workers operating.

Families under stage 4 lockdown in Melbourne will also receive an additional 30 days, or six weeks, of allowable absences from childcare.

The government has also committed to pay its contribution to services through the Child Care Subsidy (CCS), which can fund up to 85 per cent of the total cost of care.

In addition, $16.3 million will be spent to fund a higher transition payment of 30 per cent of pre-COVID revenue for Melbourne childcare services.

The government has also committed $16 million to fund an additional top-up payment for eligible services that receive low CCS payments and are experiencing very low attendance. 

For families in regional Victoria under stage 3 lockdown, the government will provide an additional 30 absence days and extend the gap fee waiver and the outside school hours care (OSHC) payment.

It has also announced a gap fee waiver for non-metropolitan Victorians for families with children absent from care for COVID-related reasons.

OSHC services, in regional Victoria, will be paid 15 per cent of their revenue from 6 August, in addition to the 25 per cent transition payment and the Child Care Subsidy.

Prime Minister Scott Morrison said the support will help Victorians get through their second lockdown.

“We will also make direct payments to childcare centres so they stay operational and staff are kept with an employment guarantee, while remaining open for workers and vulnerable families,” Mr Morrison said. 

“Many people will be worried and stressed in Melbourne right now and our support hopefully eases the burden for parents already juggling working from home, looking after other children or concerns about their job.”

Minister for Education Dan Tehan said the government had worked closely with the sector and the Victorian government to understand the impact of the extended lockdown measures on families, workers and services.

“Across Australia, we saw 99 per cent of services remain open and viable during COVID-19 as a result of the temporary, emergency measures our government put in place,” Mr Tehan said.

“We are now focusing on supporting Victorian families, workers and childcare services to help them get through their stage 4 lockdown. Our temporary package will ensure families receive continuity of care and services remain viable.”

PM announces childcare stimulus to keep businesses running
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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