Kindergartens to refund parents all advanced 2023 fees under overhaul

Guidelines for the overhaul of Victoria’s early learning system have been revealed, along with the fees centres can — and can’t — charge.

Kindergarten centres must refund parents all advanced 2023 fees and accept as many children as their facility allows when Victoria’s early childhood system is overhauled next year.

Under new guidelines seen by the Herald Sun that will be sent out to providers, there is nothing to stop centres from charging families maximum hourly rates if they choose to have their four-year-old child in care for more than the 15 hours per week that will be covered by the state government.

This means that parents could still be paying up to $12.74 per extra hour under rate caps set by the federal government.

Early childhood services can also opt out of the state’s free kinder program.

But providers that choose to participate in the scheme must make clear to parents the cost of any extra hours, and are not allowed to charge add-on fees for regular programs that they run on-site, such as bush kinder or any incursions.

Victoria’s early learning system will be overhauled in 2023. Picture: Jake Nowakowski

If they run four-year-old programs longer than 15 hours, the additional hours must remain optional.

Between five and 15 hours of free kinder must be offered for three-year-olds.

Centres will no longer be able to charge parents any compulsory maintenance fees or levies.

Enrolment deposits must be refunded once a child’s place is confirmed, along with any fees families have already paid for 2023.

The Department of Education will oversee compliance with the initiative to make sure kinders are passing on savings to parents, with the funding paid regularly to services – not to families directly.

With the program slated to save families up to $2500 per year per child for kinder and $2000 a year on childcare fees, parents can only receive the savings at one early learning centre.

Early Childhood Minister Ingrid Stitt said free kindergarten would help offset the cost of living crunch affecting families.

The median parent fee for sessional kinder in Melbourne was $1740 and $1680 in regional in 2019.

The Grattan Institute estimated that the average childcare cost a day was $110.

“We know families are struggling with the cost of living and free kinder will help make sure no child misses out on the vital years of early education,” she said.

“This is such an exciting time for families and the young learners who are able to attend free kindergarten for the first time.”

The Best Start, Best Life program is part of the state government’s $9bn investment into funded kinder programs and new early childhood centres over the next decade.

Announced as part of a joint commitment with NSW by Premier Daniel Andrews in June, it will see four-year-old kinder transition to a universal pre-prep year by 2032 – when all preschools will offer 30 hours of funded education for four-year-olds before they start school.

Parents will continue to receive subsidies from the federal government when free kinder begins in January 2023.