Coronavirus Australia: Childcare centres excluded from JobKeeper package offered lifeline by NSW government

NSW has announced free preschool in NSW and extra funding to keep hundreds of childcare centres open after they missed out on funding help.

The New South Wales government has thrown a lifeline to hundreds of childcare centres who had been excluded from receiving the massive $130 billion JobKeeper package.

The groundbreaking free childcare plan from the federal government was extended after premier Gladys Berejiklian splashed an extra $133 million to help support both workers and parents.

She said this morning the state would spend $51 million paying preschool fees for six months and also commit $82 million to 260 childcare centres not eligible for the JobKeeper allowances.

The packages offer a two-edged support platform by allowing working parents to access childcare while supporting staff at the preschools and early childcare facilities.

“Parents are under a lot of pressure at the moment and it’s crucial for them to continue to have access to childcare, particularly those working on the frontline during this crisis,” Ms Berejiklian said.

“This will also provide funding certainty during an unpredictable time, ensuring preschool teachers and educators can be confident they will remain employed.”

The announcement comes after major cracks were beginning to show in prime minister Scott Morrison’s free childcare plan.

He revealed his plan to help working parents during the coronavirus pandemic at a press conference last week, explaining that about one million families would be eligible.

At the time, he said anyone who still had a job was considered “essential” and that childcare was also an essential service as it allowed parents to continue working and helping the economy.

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Under the plan, the Government will pay 50 per cent of the sector’s fee revenue up to the existing hourly rate cap based on a point in time before parents started withdrawing their children in large numbers as a result of COVID-19, but only so long as services remain open and do not charge families for care.

The funding will apply from April 6 based on the number of children who were in care during the fortnight leading into March 2, whether or not they are attending services.

The means and activity-testing of fee subsidies will be dropped while the new system is in place.

Centres were also required to re-enrol children who have been withdrawn, to make sure parents can keep places if they need them once the crisis is passed.

Prime Minister Scott Morrison said anyone with a job was considered ‘essential’. Picture: Lukas Coch/AAP

“If you have a job in this economy then that is an essential job, in my view, in terms of running of the economy and it is important that all of those parents who have children, that they get access to child care and those facilities will be there for them in the many months ahead,” Mr Morrison said.

“What we will be doing is we will be ensuring for those parents who are still in that position where they are needing that child care, it will be free.

“We will be putting in place support arrangements to childcare facilities, some 13,000 of them, to ensure they remain open and be there for their parents to ensure they can do what they need to do each day.”

But earlier this week, Sydney childcare centres announced plans to close as the government scheme was not financially viable.

That’s because local councils do not qualify for the JobKeeper wage subsidy – which guarantees $1500 a fortnight for eligible workers – meaning council-run centres were feeling the pinch.

Cumberland City Council in Sydney’s west announced it would temporarily close 17 of its early education and child care centres in two weeks, “unless additional financial support is provided to supplement payments under the Early Childhood Education and Care Relief Package”.

“As part of the package announced last week, the Federal Government will pay 50 per cent of the sector’s fee revenue up to the existing hourly rate cap but under the condition that services remain open and do not charge families for care,” a notice on the council’s website explained.

“Council is not eligible to participate in the JobKeeper program and will continue to pay staff salaries and all operating costs while faced with a 50 per cent decline in revenue.”

Mayor Steve Christou said the council supported government efforts to support families, but described the childcare plan as a “devastating blow” to its early education centres and their 150-strong team.

“As Councils are not eligible to participate in the JobKeeper program, we are facing a situation where families will not pay fees and Council-run centres will not receive the previous Child Care Subsidy,” he said.

He said the council had written to the Federal Treasurer, Federal Education Minister and NSW State Education Minister to explain its concerns, but had been met with “radio silence”.

As a result, the council had “no choice” but to close centres.

Sydney’s Georges River Council has also confirmed it would close two centres and reduce the open days of another, and was also reviewing the continuation of all centres.

“While for-profit centres are eligible for the $1500 per fortnight JobKeeper payment for each staff member, in addition to the new childcare funding, local government is not eligible for that money,” Mayor Kevin Greene said.

“Without access to the JobKeeper payment, the funding package fails to cover the costs of keeping childcare centres open.

“We have also been experiencing a steep decline in attendance as more parents remove their children from childcare centres because of this pandemic. We are devastated that we can no longer continue to provide care at all our centres.”

But the new package announced by the NSW government this morning will allow community preschools and council childcare centres to stay open unless closed due to health advice, minister for education and early childhood learning Sarah Mitchell said.

“Preschools and council childcare centres will now have the peace of mind that they will be financially viable, and parents will benefit from the relief of not having to pay any fees,” Ms Mitchell said.

“Families and children can now also be assured that their preschool service will continue to operate, providing some familiarity for them during these trying times.”