Recap: A summary of all key Federal and State COVID-19 support packages available to ECEC
Over the course of the last three weeks there have been multiple relief schemes launched by both Federal and State and Territory Governments aimed at mitigating the economic consequences of the COVID-19 outbreak.
To support readers in developing an understanding of their full range of opportunities and entitlements as a result of these initiatives, The Sector has prepared a high level summary of available packages from an early childhood education and care (ECEC) perspective.
ECEC Relief Package
Federal package, released by the Department of Education, Training and Employment on 2 April 2020.
The Relief Package sees the CCS system suspended and replaced with a direct payment from the Federal Government equal to around 50 per cent of revenue generated in the fortnight prior to 2 March 2020.
The payment will be paid instead of CCS and ACCS and will be paid up to 28 June 2020.
Services need not apply, it will be processed automatically.
In exchange for this payment services are expected to comply with three requirements, namely:
- remain open for the next 12 weeks,
- not charge families a fee of any sort for the next 12 weeks,
- prioritise care to essential workers, vulnerable and disadvantaged children and children who have previously enrolled that may have un-enrolled due to COVID-19
The Department of Education, Training and Education information page is comprehensive and contains useful detail about the policy covering special circumstances that would merit applying for a higher percentage, information about “gap” fees management, immunisation and regulatory guidelines and much more.
It can be accessed here.
Federal package, released by the Australian Treasury and the Australian Tax Office on 30 March 2020
The JobKeeper payment is the Federal Government’s centerpiece policy in its third COVID-19 response package.
The JobKeeper payment will see $1,500 paid to eligible businesses for each eligible employee they had on their books as at 1 March 2020.
Employers with less than $1 billion turnover who can self assess a 30 per cent fall in revenue due to the COVID-19 pandemic will be eligible, and employees who are Australian residents, New Zealand citizens working in Australia or migrants on JobSeeker or Youth Allowance and who are or were full time, part time, long term casual and/or have been stood down since 1 March 2020 are eligible.
The package will also be formally extended to include registered not for profits, regardless of size, that can demonstrate a 15 per cent decline in turnover or more due to COVID-19.
That being said, it is understood that all ECEC services that are eligible for the ECEC relief package will be automatically eligible for this subsidy due to the implications of the 50 per cent of revenue to be received instead of CCS.
A detailed summary of the JobKeeper payment has been provided by the ATO and is accessible here.
Boosting Cash Flow for Employers Payments
Federal package, released by the Australian Treasury and the Australian Tax Office on 22 March 2020.
The Boosting cash flow for Employers Payments scheme was part of both the first and second COVID-19 support packages.
It will see eligible employers receive a 100 per cent rebate of PAYG paid on behalf of employees in the quarter ended March 2020 and the upcoming quarter ended June 2020.
The amounts to be received will range between $20,000 and $100,000 in total, so $10,000 and $50,000 per quarter.
Businesses, including not for profits, with annual turnover of less than $50 million are eligible.
No application is required. It will be paid automatically with the first tranche expected in early May.
A detailed summary of the payments scheme is available at the ATO website which can be found here.
Payroll tax deferrals, rebates and waivers
Packages released by various State and Territory Governments on multiple dates, these packages are directly applicable to for profit operators who pay payroll tax
- Victoria – Payroll tax refunds and payroll tax deferrals available
- New South Wales – Payroll tax waivers and threshold increases available
- Queensland – Payroll tax refunds, waivers and deferrals available + job support loans available
- Western Australia – One off grants, payroll tax deferrals and threshold increases available
- Australian Capital Territory – Payroll tax deferrals available
- Tasmania – Payroll tax waivers, rebates + grants available
- Northern Territories – Payroll tax exemptions + NFP grants + Business improvement grants available
- South Australia – Payroll tax waiver, deferral + Business support fund + Community support fund available
For a complete summary of state and territory packages please click here.