ECEC regulatory, financial and quality changes from July 1, 2024: Are you across them?

As we move into the new financial year it is quite striking how much change is taking place from an administrative, regulatory and financial perspective across the early childhood education and care (ECEC) sector. 

 

Whether it be an increase in the Modern Award, rises in superannuation guarantee contribution rates, changes to income tax or movement in the Child Care Subsidy (CCS) space, there is a lot for ECEC professionals to remain aware of. 

 

As such, the team at The Sector felt it would be useful to provide a quick summary of the key changes. Please note this is not an exhaustive list, and readers should ensure that they are consulting with key regulatory and local bodies for information specific to their context.  

 

1. Modern Award wages increase from 1 July 2024

 

As part of the Fair Work Commission’s Annual Wage Review all Award Minimum wages increased by 3.75 per cent.

 

The increases will come into effect on 1 July 2024 with team members on the Children’s Services Award 2010 and Educational Services (Teachers) Award 2010 seeing the 3.75 per increase passed through.

 

For more information about how the Award Wage changes will play out in ‘dollars and cents’ terms please see here. 

 

2. Superannuation guarantee increase

 

From 1 July 2024, the superannuation guarantee will increase to 11.5 per cent.

 

This means that employers have to pay superannuation contributions of 11.5 per cent of a part time and full time employee’s ordinary time earnings, up from 11.0 per cent before 1 July 2024. 

 

More information about superannuation changes is available here. 

 

3. Income tax changes

 

The Australian Government has made changes to individual income tax rates and thresholds that will apply to all taxable income earned from 1 July 2024. 

 

This means from 1 July most taxpayers will pay less tax each payday and will experience take home pay increases. 

 

Learn more here. 

 

4. CCS hourly rate cap increase

 

From 1 July the hourly child care subsidy (CCS) rate cap will rise by 4.1 per cent, with all caps for centre based care, outside school hours care (OSHC), family day care (FDC) and in home care adjusted accordingly for the 2024-25 year.

 

Long day care (LDC) and OSHC services will now have a fee cap of $14.29 per hour (compared to $13.73 last year) and FDC will have a $13.29 cap (compared to $12.72 last year).

 

5. Paid parental leave changes

 

Starting from 1 July 2024, eligible parents will receive an additional two weeks of paid leave with 22 weeks (110 flexible PPL days) now extended in relation to a child born or adopted on or after 1 July 2024.

 

This allowance will rise by a further two weeks as at 1 July 2025 and a further two weeks as at 1 July 2026.

 

More information is available here.

 

6. Restrictions on using personal devices to capture images

 

For those services who have elected to adopt the new National Model Code and Guidelines which have been introduced to safeguard children and young people whilst in the care of ECEC services taking photos and videos of children on personal phones and devices will be restricted from 1 July 2024.

 

The Model Code is however a voluntary, interim measure while future legislative reform is being considered by governments, and the Guidelines are in place to support the implementation of the Model Code.

 

More information can be found here. 

 

7. Temporary Graduate Visa Program changes

 

The Australian Government announced changes to the Temporary Graduate visa programs in its recent Migration Strategy. These changes came into effect from 1 July 2024.

 

The maximum eligible age for Post-Vocational Education Work stream applicants has been reduced to 35 years of age or under at the time of application, although Hong Kong and British National Overseas passport holders are still eligible if they are under 50 years of age.

 

8. Changes to Australian Apprenticeships

 

From 1 July 2024, some Providers (formerly known as Australian Apprenticeship Support Network Providers (AASNs)) are no longer delivering services, some have continued and new Apprentice Connect Australia Providers (Providers) have been introduced. This means some apprentices and employers moved to a new Provider from 1 July 2024.

 

If an apprentices provider changed as part of the transition they will have received an email with information about the new Provider. 

 

9. Changes to some rules in the National Quality Framework – Family Day Care

 

Family Day Care educators (excluding those in West and South Australia) have until 1 July 2024 to complete their Certificate III in Early Childhood Education and Care in order to remain compliant. 

 

From 1 July 2023, regulations came into effect which mean that new FDC educators must hold an approved certificate III level (or higher) qualification before starting their role in a family day care service. This means that new FDC educators cannot be ‘actively working towards’ a qualification.

 

Looking ahead it is also worth being aware of significant changes in casual employment laws that are due on 26 August 2024 that include a new pathway that will be introduced for eligible employees to change to permanent employment if they want to and meet the criteria. Further notice of these changes will be provided by The Sector closer to the implementation date.