Coronavirus Australia: Childcare sector faces collapse within a fortnight without help

The child care industry says its 200,000 workers will be out of a job inside two weeks, decimating Scott Morrison’s plans to “resuscitate” the economy once the coronavirus crisis passes.

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The child care industry says its 200,000 workers will be out of a job within a fortnight, decimating Scott Morrison’s plans to “resuscitate” the economy once the coronavirus crisis passes.
While the Prime Minister yesterday declared the sector was a “high priority”, Australian Childcare Alliance (ACA) vice president Nesha Hutchinson said action was needed immediately.
“We’ve got 200,000 childcare workers. If the government doesn’t help now they will be hitting Centrelink – 100,000 next week,” Ms Hutchinson told The Saturday Telegraph. “The next week, the entire sector would be done.”

The childcare sector says its 200,000 workers will be out of a job.

If centres close permanently it won’t be possible for parents to go back to work as soon as the COVID-19 “hibernation” ends, she said.
The ACA wants the government to waive gap fees. That would stop parents whose kids are at home from pulling out of care altogether. Centres would then continue to receive the taxpayer-funded childcare subsidy and avoid collapse.
Mr Morrison said childcare was a “very sensitive” area and an “essential part of keeping the economy running.” He said “arrangements” were being made but hadn’t been finalised.

Scott Morrison says childcare is a priority industry.

Speaking more broadly, the PM said the aim of an upcoming third wave of financial support would be to help businesses “resuscitate … on the other side” of the virus crisis.
“That means your job is there again, your income is there again, like a return to some form of, some sort of normality,” he said.
“There will be a burden for everyone to share. And that will include the business as well. There will be landlords who will suffer … the banks will be having to make arrangements with them.
“Whether councils are involved in providing waivers on rates, things of that nature will be something states work through,” Mr Morrison said.

“Whether land tax will be relieved for those who have tenants in distressed situations, all of these are what we are working through. It isn't simple.”
Australian Local Government Association President David O'Loughlin told the Telegraph that councils probably won’t provide rates relief to all businesses.
“There won’t be a blanket impact and therefore it is unlikely councils will have a blanket response,” Mayor O’Loughlin said. He urged businesses that were in trouble to talk to their council.
In line with the PM's comments, the state government is believed to be considering waiving or deferring land tax.
On rent, a spokesman for NSW Treasurer Dominic Perrottet said “the states are working together to develop options and ideas” for relief.

That will cover both commercial and residential. However it's not known if the land tax concessions under consideration will be applied to both types of property.

Meanwhile, energy retailers have promised they won’t switch off the lights on any small businesses or household until at least July 31.

Originally published as Coronavirus Australia: Childcare sector faces collapse within a fortnight without help