Childcare sector concerned about viability under new scheme

The free childcare and JobKeeper schemes have enabled most Tasmanian centres to remain open. But there are now concerns about financial viability for some, including those in rural and remote areas.

THE decision to end the free childcare scheme will result in an uncertain time for the sector in Tasmania as the post-coronavirus transition approaches, industry leaders say.

The Federal Government on Monday said parents would have to pay childcare fees again from July 13, while JobKeeper payments to the sector would cease one week later.

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Childcare operators will share in a $708 million transition package that will be equivalent to a quarter of their revenue from the pre-coronavirus period.

Early Childhood Australia Tasmania president Ros Cornish (centre) with Ada Roberts, 4 and Van Gill, 4 at Lady Gowrie Childcare Centre in South Hobart. Picture: LUKE BOWDEN

Early Childhood Australia Tasmania president Ros Cornish said there were many questions to be answered in the coming weeks for the sector, which had about 300 centres employing 3000 people and caring for about 23,000 children.

Ms Cornish said the removal of the JobKeeper allowance had come as a surprise because of previous pledges that it would continue until September. And she said for operators to receive the transition package, they must sustain their current fee structure, which in normal circumstances would increase on July 1.

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Ms Cornish said families might withdraw their children once the free childcare scheme ended, creating uncertainty with demand.

“We’ve been pretty resilient, responsive, and we’ve remained open throughout the pandemic,’’ she said.

“I’m just getting concerned about the resilience of the sector with ongoing change in policy direction.”

Ms Cornish said families might withdraw their children once the free childcare scheme ended. Picture: LUKE BOWDEN

Ms Cornish said the support package and JobKeeper had enabled most centres to remain open.

But there were now concerns about financial viability for some, including those in rural and remote areas.

Education Minister Jeremy Rockliff said the sector had “done it tough” in recent months, but said it had performed a crucial role or children of essential workers.

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Mr Rockliff said the State Government did not intend to offer free childcare in response to the federal announcement.

Labor deputy leader Michelle O’Byrne said a targeted response was needed to ensure viability.

“If we make it unaffordable for women to go back to work, then we impact on their ability to participate in the workforce,’’ Ms O’Byrne said.