Childcare managers say fee relief package will force centres to close

Childcare centres believe the Federal Government’s fee relief package will compromise quality of care and education and force the closure of many centres.

Without a gap fee Camp Hill’s Timber Tots childcare centre says services like their library program cannot be covered. Picture: Claudia Baxter

CAMP Hill Childcare Centre Timber Tots has warned the Federal Government’s new fee relief package will put the industry on the verge of collapse.

Timber Tots Owner and Director Jana Walker took to Facebook to say the new package immediately resulted in the centre losing 60 per cent of its revenue and also could no longer charge a gap fee for additional services including cleaners and a cook serving children fresh meals.

“This is unsustainable. No business that is deemed essential can survive that loss of revenue yet be expected to stay open to help keep the frontline workers and essential workers in their jobs,” she said.

“Initially the Government believed our industry was worth a minimum of $11.98 per hour per child but now they believe childcare is only worth $5.99 per hour per child ... even babysitters get paid more.

“Childcare is great if it is free but the cost will be there will be no quality childcare centres open to provide that free care. This will be the end for many exceeding childcare centres.”

Through the Relief Package, services will receive a weekly payment from the Government calculated to be 50 per cent of the services’ revenue up to the existing hourly rate cap.

A STRUGGLE TO MAKE ENDS MEET

CENTRES CUT BACK ON NAPPIES AND MEALS

A Department of Education, Skills and Employment spokeswoman said the package was in response to child care centres experiencing mass withdrawals which threatened their ability to provide care and continuity of education.

“In response, our Government has introduced a new system to ensure families can still access quality child care while viability of services is maintained,” she said.

“In developing this new package the Government listened to the concerns of peak industry organisations and the sector.”

Member for Griffith Terri Butler agreed with the comments from TimberTots and said she had heard from other centres in the electorate that were under pressure.

“The Commonwealth needs to tailor a solution for childcare centres that keeps them open,” Ms Butler said.

“Otherwise childcare workers will lose their jobs, and the families who rely on the services will be left without care for their children. Many of those parents are relying on childcare because they themselves are frontline, essential workers.

“The Government should also be thinking long-term. If childcare centres shut down that will mean a lot of the nation’s capacity to provide childcare will be lost. That will hurt us during the recovery, as parents will need care in order to return to work outside the home. And of course, early learning has significant benefits for children, which is an important reason to maintain continuity in the early learning workforce, and avoid the erosion of educators’ skills.”