COVID-19 Wage Subsidy for Childcare
Scott Morrison’s $130 billion plan keeps childcare workers employed.
IMPORTANT: Service Closure
You will be notified by the state or territory regulatory authority if your service should be closed. If you voluntarily chose to or are advised to close your service by authorities, you must notify your state or territory regulatory authority within 24 hours.
The Federal Government has announced a $130 billion package to support small and big businesses whose livelihoods have been affected by the pandemic. This includes the childcare sector, which employs over 180,000 staff, and this promising plan will help support qualified childcare workers in keeping their jobs. Supporting as many as 6 million Australian workers, the plan will enable businesses to help pay their employees’ wages with the government’s fortnightly subsidy.
Daily childcare rates can range between $120-$140. Which would have caused many parents to withdraw their children from childcare to try to curb the financial strain. The $130 billion package will not only provide relief for parents but may also encourage them to bring their children back to daycare.
Costs to employ staff to help run a childcare centre can run as high as 70 – 75% of the gross revenue derived. The JobKeeper plan will assist owners and employees within the childcare sector who are affected and will ensure recovery as quickly as possible once the pandemic is over.
This plan also considers Australians who have lost or will lose their jobs because of the coronavirus crisis. The ATO’s JobKeeper scheme will guarantee workers receive $1,500 a fortnight to provide financial support.
JobKeeper Allowance – How It Works
A $1,500 JobKeeper wage subsidy will be issued fortnightly per affected employee to businesses that have incurred a 30% revenue hit (or 50% revenue hit for businesses with annual earnings of $1 billion).
The employer will pay their affected employees $1,500 fortnightly, provided they were listed on the books from March 1 st. The government will then reimburse those businesses.
The ATO will continue using the existing infrastructure to deliver this new plan rather than creating new systems and processes which could delay the procedure.
Who is Eligible?
People and organisations eligible to receive the $1,500 payment include:
- Not-for-profit organisations and charities;
- Full-time workers;
- Part-time workers;
- Casual employees who have been with an employer for at least 12 months;
- Sole traders; and
- New Zealanders on a 444 Visa.
Visit the government website to learn more about how to apply.
JobSeeker & JobKeeper – Can I Claim Both?
No, people cannot claim both JobSeeker and JobKeeper allowances. If you have already applied for JobSeeker payments but would prefer to claim via JobKeeper, Scott Morrison suggests speaking to your employer so you can be transferred across to this new payment plan.
Register now for JobKeeper Payment updates.
Further information
- Visit the COVID-19: Childcare Resources for latest news updates, understanding your responsibilities are to parents & children during the COVID-19 pandemic, when you should close your service, and how to get financial advice & assistance, and other key childcare-related information.
- Please visit the Department of Education, Skills and Employment Frequently Asked Questions for more information for providers and services and Coronavirus (COVID-19) for the latest education and training sector fact sheets.
- The CCS Helpdesk is available to assist with information for services to help them manage the impacts on their business. Please email the CCS Helpdesk on ccshelpdesk@dese.gov.au, send in your query via an online form or call 1300 667 276 between 9.00 am — 5.00 pm (AEDST), Monday to Friday.
Please make sure that if you are a child care provider or service you have subscribed to receive communications from the Department of Education, Skills and Employment.
