Read The Times Australia

Daily Bulletin

Free childcare ends July 12, with sector losing JobKeeper but receiving temporary payment

  • Written by: Michelle Grattan, Professorial Fellow, University of Canberra
Free childcare ends July 12, with sector losing JobKeeper but receiving temporary payment

Free childcare will end on July 12, with the government saying it has “done its job” and demand is now increasing for places as the economy is reopening.

The system will return to the previous mean tested childcare subsidy scheme but with some transition funding for the sector and help for parents whose circumstances have been hit by the pandemic.

JobKeeper will end from July 20 for employees of providers, but there will be a $708 million in funding for services to replace JobKeeper from July 13 until September 27.

This funding will pay childcare services 25% of the fee revenue they received before COVID saw the sector crashing.

Two conditions will be imposed on services as part of the transition funding. Fees will be capped at the level they were in late February, and services will have to guarantee employment levels to protect staff who will move off JobKeeper.

The government will ease the activity test until October 4 to support families whose employment has been affected by the pandemic. During this time, these families will be able to receive up to 100 hours a fortnight of subsidised care.

Education Minister Dan Tehan said on Monday “this will assist families to return to the level of work, study or training they were undertaking before COVID-19”.

The removal of free childcare will be a big first test of the political reaction to the government winding back COVID emergency help.

The government’s announcement will also test the fallout when JobKeeper assistance, which was set to run until late September, is taken away in certain circumstances or replaced by industry-specific assistance.

The JobKeeper program in general is currently being reviewed, with the results made public in late July, when the government gives an economic and fiscal update.

The emergency free childcare package was brought in because the sector was experiencing mass withdrawals of children, which threatened its ability to continue providing care, especially for the children of essential workers.

The government budgeted for its three month package to cost $1.6 billion, including the JobKeeper payment. It had left open the possibility of an extension.

Asked for the difference between continuing JobKeeper and moving to the transition payment, Tehan said this was still being worked out, but the transition measure would “probably be a tiny bit less than what JobKeeper would be”. But he said the sector preferred the transition payment because “it spreads more equitably the support right across the sector”.

Tehan said a review of the child care relief package had “found it had succeeded in its objective of keeping services open and viable, with 99% of around 13,400 services operational” on May 27.

“Because of our success at flattening the curve, Australia is re-opening for business and that means an increase in demand for child care places, with attendance currently at 74% of pre-COVID levels.”

Labor’s shadow minister for early childhood education, Amanda Rishworth, said the decision could “act as a handbrake on the economy. If women and families are not able to access affordable childcare, how are they going to get back to work?”

Australian Greens education spokesperson senator Mehreen Faruqi labelled the decision “an anti-women move”.

“We know that a significant proportion of families currently accessing free childcare will now be forced to reduce their work days or completely remove their little ones from care. Let’s be honest: it will mostly be women who are forced out of work now,” she said.

The Parenthood advocacy group said thousands of parents would have to take their children out of early childhood education and care because they would not be able to afford it.

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more https://theconversation.com/free-childcare-ends-july-12-with-sector-losing-jobkeeper-but-receiving-temporary-payment-140253

Business News

Reducing Sales Friction Through Centralized Content Delivery

Sales friction appears whenever buyers or sales teams face unnecessary obstacles in the buying journey. It can happen when information is hard to find, when messaging feels inconsistent, when product ...

Daily Bulletin - avatar Daily Bulletin

Why Choosing the Right Bollard Supplier Matters for Australian Businesses and Public Spaces

From busy CBD streetscapes to sprawling warehouse loading docks, bollards have become one of the most essential safety and security fixtures across Australia. Whether protecting pedestrians from veh...

Daily Bulletin - avatar Daily Bulletin

Why Modular Content Is Transforming Modern Marketing Teams

Modern marketing teams are expected to produce more content than ever before. They need to support websites, landing pages, email campaigns, social channels, product pages, sales enablement material...

Daily Bulletin - avatar Daily Bulletin

Everything You Need to Know About Getting Support from Optus

Whether you've been an Optus customer for years or you've just switched over, at some point you'll probably need to contact their support team. Maybe your bill looks different from what you expected. ...

Daily Bulletin - avatar Daily Bulletin

The Marketing Strategy That’s Quietly Draining Sydney Business Owners’ Bank Accounts

Sydney businesses are investing more in digital marketing than ever before. The intention is clear. More visibility should mean more leads, more customers, and steady growth. However, many business ...

Daily Bulletin - avatar Daily Bulletin

Why Mining Hose Solutions Are Essential For High-Performance Industrial Operations

In environments where the ground itself is constantly shifting, breaking, and being reshaped, every component must be built to endure. Mining operations are among the most demanding in the industria...

Daily Bulletin - avatar Daily Bulletin

The Reason Talented Teams Underperform

If you’re in business, you might have seen it before. A team of capable and smart people just suddenly slows down, and things start spiraling out of control. On paper, everything looks perfect, but ...

Daily Bulletin - avatar Daily Bulletin

Why More Aussie Tradies Are Moving Away From Paid Ads

Across Australia, a lot of tradies are busy. There’s no shortage of demand in industries like plumbing, electrical, landscaping, and building. But being busy doesn’t always mean running a smooth or...

Daily Bulletin - avatar Daily Bulletin

Why Careers In The Defence Industry Are Growing Rapidly

The defence sector has evolved far beyond traditional roles, opening doors to a wide range of opportunities across technology, engineering, intelligence, and operations. This is where defense industry...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Australia’s Best Walking Trails and the Shoes You Need to Tackle Them

Australia is not short on spectacular walks. You can follow ocean cliffs in Victoria, cross ancien...

Why Pre-Purchase Building Inspections Are Essential Before Buying a Home in Australia

source Have you ever walked through an open home and started picturing your furniture, family d...

5 Signs Your Car Needs Immediate Attention Before It Breaks Down

Car problems rarely appear without warning. In most cases, your vehicle gives clear signals before...

Ensuring Safety and Efficiency with Professional Electrical Solutions

For businesses in Newcastle, a safe and fully functioning workplace remains a key part of day-to-d...

Choosing The Right Bin Hire Solution For Hassle-Free Waste Management

When it comes to managing waste efficiently, finding the right solution can save both time and eff...

Why Cleanliness Is Critical In Childcare Environments

Children explore the world with curiosity, often touching surfaces, sharing toys, and interacting ...

What to Look for in a Reliable Australian Engineering Partner

Choosing an engineering partner is rarely just about technical capability. Most businesses can fin...

How to Choose a Funeral Home That Supports Families with Care

Choosing a funeral home is rarely something families do under ideal circumstances. It often happen...

Why Premium Coffee Matters in Modern Hospitality Venues

In hospitality, details shape perception long before a guest consciously evaluates them.  Lightin...