Federal Government announces rescue package for childcare sector

The Federal Government has moved to secure the future of the nation’s childcare sector in the wake of a mass exodus of children from childcare facilities as the coronavirus pandemic took hold.

CHILD care will be free for parents still using it during the coronavirus crisis.

The Federal Government will also support the nation’s 13,000 childcare centres to remain open after enrolment and attendance numbers plummeted.

Prime Minister Scott Morrison said childcare was an essential service to keep all parents who still had jobs in their work.

Under the plan, the Government will pay half the reasonable fee cap to centres for the next six months as long as they remain open and don’t charge parents any fees.

Childcare centre owner Louise de Bomford-Scott in her centre’s empty playground. Picture GLENN CAMPBELL

The funding will start from April 6 and will cover enrolments as they stood in the fortnight leading up to March 2, before people started pulling their children out of care en masse due to losing their jobs or out of health fears.

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

Centres must also seek to re-enrol children who have been withdrawn, to make sure parents can keep places if they need them once the crisis is passed.

Federal Education Minister Dan Tehan, left, and Prime Minister Scott Morrison announce the childcare rescue package. Picture: GARY RAMAGE

Federal Education Minister Dan Tehan said the aim was to make sure parents won’t have to worry about trying to find new care for their children.

“What we want to do by doing this is ensure that your childcare centre will remain open, so that you know where you normally take your child to get cared, that that will be there for you, so you are not looking to have to go to a new centre,” he said on Thursday.

Early Childhood Australia Tasmanian president Ros Cornish said the new measures would save many local providers from going under, but would not go far enough for others.

“Parents and families are the winners today which is great and we are hopeful it will encourage them to come back to our centres,” she said.

Early Childhood Australia Tasmanian president Ros Cornish.

Ms Cornish said the Tasmanian branch would seek to speak to the State Government about what additional support it might be able to give the sector.

It is also expected the childcare sector will be able to access about $1 billion in the JobKeeper wage subsidy payments.

Wages account for more than 60 per cent of a centre’s expenses.