Treasury confirms cost of ECEC Relief Package and more in Economic & Fiscal Update

Treasury confirms cost of ECEC Relief Package and more in Economic & Fiscal Update

by Jason Roberts

July 24, 2020

The Federal Government has provided an Economic and Fiscal Update detailing the impact of the COVID-19 pandemic on Australia’s economy in which details of the costs incurred for the early childhood education and care sector’s key support packages are revealed. 


With respect to the ECEC Relief Package which came into force on 6 April 2020 and consisted of weekly business continuity payments paid to providers that remained open equivalent to 50 per cent of a providers revenue during a predetermined reference period and exceptional circumstances supplementary payments paid to services on application in cases where enrolments had exceeded reference period levels.


The package, which ceased 12 July 2020 and operated for 14 weeks, cost the Federal Government a total of $1.9 billion which for the sake of context, is broadly equivalent to the $1.96 billion to the Government spent on Child Care Subsidy entitlements spent in the three months ended June 2019 last year.  



With respect to the Transition Payment arrangements, which will see services receive weekly business continuity payments equivalent to 25 per cent of reference period revenues for 12 weeks from 13 July to 27 September subject to maintaining fees and guaranteeing employment levels, the Government is expecting a cost of $0.7 billion.


In addition, during this period around $2.0 billion is expected to be spent on CCS entitlements over the same period which notably is just 10 per cent lower than that spent in the 13 week period ended 30 September 2019 and perhaps reflects a more positive demand uptake for ECEC services driven by additional measures such as relaxation of activity test rules. 


To review the details of the Economic and Fiscal Update pertaining to the Department of Education, Skills and Employment COVID-19 packages please click here and go to page 54.