ACA urges providers to take advantage of free worker retention grant support 

Timelines for eligible approved providers of early childhood education and care (ECEC) to apply for the Australian Government’s Worker Retention Payment (WRP) grant are narrowing, with those who wish to have payments backdated to 2 December 2024 urged to seek support to ensure that they have made a complete application by the end of the financial year (30 June 2025). 

 

“We strongly encourage you to get started now, to ensure you meet the necessary deadlines and secure your eligibility for payment,” Australian Childcare Alliance (ACA) President Paul Mondo said.

 

“We appreciate there is a lot of information to take in, navigate and make decisions on.”

 

“We can help you consider the grant guidelines and whether your service would benefit from receiving the WRP, and if, after considering your options, you decide to apply for the WRP we can help you to gain a clear understanding of each workplace instrument option, to weigh up the pros and cons of each and help you decide which one best suits your service’s needs.”

 

Free support for all eligible WRP applicants

 

ACA is one of a handful of organisations entrusted by the Federal Government to help ECEC services to navigate the WRP process by providing a sounding board to support them to weigh up the pros and cons of selecting the WRP and to make a decision which best suits the needs of their service.

 

It is important to note that the decision to apply for the WRP rests solely with each individual provider, and should be based on a thorough assessment of their individual circumstances and the suitability of the WRP’s terms and conditions. The WRP may not be appropriate for all services.

What is the WRP? 

 

In 2024 the Australian Government announced that it would support a 15 per cent wage increase for the ECEC workforce over a period of two years, via a government grant called the ECEC Worker Retention Payment (WRP).

 

Eligible ECEC approved providers (i.e. centre-based day care and outside school hours services) can opt-in to receive this government funding, via an online application process which comes with a set of grant guidelines. Providers which are approved must then pass the payment on to eligible ECEC workers.

 

What is the ‘fine print’ relating to the WRP? 

 

ECEC service providers wishing to apply for the WRP are required to comply with a set of grant guidelines,  which among other things, stipulate that in order to be eligible for the payment: 

 

• They must engage your employees in an acceptable workplace instrument; and
• They must limit their fee growth by a set percentage from August 2024. This is known as the fee growth cap.

(The fee growth cap is 4.4 per cent between 8 August 2024 and 7 August 2025, and 4.2 per cent between 8 August 2025 and 7 August 2026.)

 

Providers can access and read the WRP grant guidelines in their entirety by downloading the full document here.

 

A summary of the grant guidelines is available here.

 

What is a workplace instrument? 

 

In the context of the Australian Government’s WRP grant, a workplace instrument refers to any formal agreement, policy, or document that sets out employment conditions for workers. 

 

This can include awards, enterprise agreements, employment contracts, or workplace policies that outline pay rates, job roles, and conditions of employment. These instruments help determine whether an employer is eligible to receive the grant based on their commitment to retaining workers under the specified conditions.

 

The two main options for adopting a compliant workplace instrument are:

 

• the Individual Flexibility Arrangements (IFAs); and
• the Multi-Employer Agreement (MEA).

 

Each of these options come with advantages and disadvantages which should be carefully considered before making a decision. ACA can assist providers to decide on the best option for the needs of their service(s), and then help the service to adopt the chosen instrument. Both options require consultation with employees.

 

Workplace instruments can be negotiated through a bargaining process, and they are legally binding. 

 

What about the financial implications? 

 

ACA understands the uncertainty surrounding the WRP decision making process, and has been well positioned through consultancy with members, and involvement in the WRP process, to support those with questions about the financial implications of accessing the WRP. 

 

ACA’s free service is offered with the support of the Department of Education, and in collaboration with an expert legal team from the Australian Business Lawyers and Advisors (ABLA).  

 

The professional support service has been made available to assist all ECEC service providers (i.e. you don’t have to be an ACA member) to help them engage with a workplace instrument and access the WRP as soon as possible.

What if making a decision is too complex? 

 

For those services who have taken a ‘watch and wait’ approach to making a WRP decision, ACA is able to help and support, including with the completion of the online application, however it is important to note that for those who are seeking to backpay educators their educators from 2 December 2024 that applications need to be approved by 30 June 2025. 

 

This means providers will need to have their MEA application submitted to the Fair Work Commission (FWC) in one of the monthly rounds prior to the end of June. 

 

“For those who haven’t yet landed on a decision about applying for the WRP, we recommend that you take advantage of our free, professional service to help you make an informed decision,” Mr Mondo said. 

 

“The FWC has set up a strict timeline of monthly submission processes to join the MEA. If you are intending to adopt the MEA for the purposes of the WRP and you wish to backdate the payments to 2 December 2024, you must partake in one of the next three monthly submission rounds,” he added. 

 

“We strongly encourage you to get started now and take advantage of our free offer to support you through the process and make sure you have expert legal representation from our trusted legal team.”

 

Application help and ongoing support

 

As well as assisting providers with the initial decision making and WRP application, offering insights and overview to ensure the application is compliant with grant guidelines and avoids any obstacles for approval, ACA can offer ongoing support to help services comply with the ongoing reporting requirements of the WRP grant via its free, professional resources. 

 

How to connect with the WRP Support Service

If you are seeking further assistance in making your WRP application, you can contact the Australian Childcare Alliance via email at [email protected] or by phone at 1300 856 379.