Struggling Vic childcare providers get $306m in federal funding

Victorian childcare providers, including councils, are getting additional Commonwealth support to allay the effects of the state’s second-wave Covid-19 lockdowns.

The $305.6 million Child Care Recovery Package announced this week includes:

  • A recovery payment of 25 percent of pre-Covid revenue to Victorian childcare services, until 31 January 2021;
  • An extra payment of 15 percent of pre-Covid revenue for Victorian outside-school-hours care services, increasing their total support payments to 40 percent of revenue;
  • Continuing the employment guarantee to ensure that Victorian providers receiving the recovery payment pass support payments on to educators and employees through wages and payments; and
  • A childcare fee freeze for Victorian families until 31 January.

The recovery payment will start for centre-based daycare, family daycare, and in-home care on 28 September. The 40 percent recovery payment for outside-school-hours care will also start in Victoria when in-school teaching returns (anticipated to be mid-to-late October).

Childcare services can waive gap fees until 31 December 2020 if their service has been closed at the direction of a health authority.

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