Changes to JobKeeper for Childcare Workers

Childcare workers currently receiving Jobkeeper will receive their last payments on 20 July 2020.  This follows the Government’s decision to end its free childcare scheme. 

To replace Jobkeeper in this sector the Government will pay Childcare services a transition payment equalling 25 % of their fee revenue from 13 July to 27 September 2020.  The aim is to help childcare services with cash flow.

Conditions will need to be met, including protecting employment for staff who move off the Jobkeeper payment and capping childcare fees.  The capping will be calculated at the level they were at between 17 February and 1 March 2020.

As Australia re-opens for business, the demand for childcare has increased.  Providers have indicated the transition payment is the preferred payment over JobKeeper.  This announcement has caused some uncertainty for other business sectors with fears the review of the $1,500 wage subsidy scheme for childcare may mean changes for other sectors that demonstrate a recovery prior to the September cut-off.

Treasury has indicated changes may be announced in late July but at this stage, Evolution continues to assist our clients to work under the current wage subsidy scheme whilst preparing them for the recovery ahead.