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2022-2023-2024
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
WAGE JUSTICE FOR EARLY CHILDHOOD EDUCATION AND CARE WORKERS (SPECIAL
ACCOUNT) BILL 2024
ADDENDUM TO THE
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Education,
the Honourable Jason Clare MP)
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The purpose of this addendum is to provide additional material to the Explanatory Memorandum
to the Wage Justice for Early Childhood Education and Care Workers (Special Account) Bill 2024
(the Bill) to provide further information in relation to the eligibility criteria for the Early Childhood
Education and Care (ECEC) Worker Retention Payment. This addendum responds to concerns by
the Senate Standing Committee for the Scrutiny of Bills' Scrutiny Digest 14 of 2024 (20 November
2024).
PART 3 - GRANTS
After paragraph 24 on page 12, insert the following:
24A. It is common practice for grant eligibility criteria to be left to non-legislative guidance
when establishing a special account to fund grants.
24B. In this case, it is appropriate that the eligibility criteria for grants are not contained within
legislation, as this provides the necessary flexibility to adjust eligibility if required. For
example, should eligibility criteria need to be amended to extend support to other parts
of the ECEC sector, following consultation with relevant stakeholders, the Grant
Opportunity Guidelines could be promptly amended.
24C. As at 22 November 2024, the Grant Opportunity Guidelines included the eligibility criteria
in paragraphs 24D to 24G below.
24D. The Grant Opportunity Guidelines explain that the intent of the Worker Retention
Payment is to fund a wage increase for eligible ECEC workers who:
(a) work at an eligible Child Care Subsidy (CCS) approved Centre-Based Day Care
(CBDC) or Outside School Hours Care (OSHC) service that opts in to the payment,
and
(b) are covered by either the Children's Services Award 2010 or the Educational
Services (Teachers) Award 2020, or
(c) undertake the duties included in the Children's Services Award 2010 or the
Educational Services (Teachers) Award 2020 but are not covered by these awards
(including workers covered by a state industrial instrument or working in a
setting covered by a different award) and these duties constitute the majority of
that worker's role.
24E. To be eligible to apply for a grant, the applicant must be a legal entity that provides CBDC
or OSHC services (a Provider). One Provider may apply in relation to one or multiple
service locations (Services).
24F. The Provider must be:
(a) an incorporated or unincorporated body or association, or
(b) a private or public company, or
(c) a registered co-operative, or
(d) a state or territory government body, or
(e) a local council, or
(f) an Indigenous corporation, or
(g) a sole trader, or
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(h) a partnership.
24G. The Provider must, for each Service on the application:
(a) have a valid Australian Business Number;
(b) have a valid account registered with a recognised Australian financial institution;
(c) be approved by the Department of Education under the Family Assistance
Administration Act to administer CCS payments as evidenced by a valid and
current CCS approval number;
(d) meet and maintain all eligibility requirements of continued CCS approval for the
duration of the Grant Agreement;
(e) have a legally enforceable workplace instrument in place, in line with section 4.3
of the Grant Opportunity Guidelines; and
(f) not increase their Service fees by more than:
i. 4.4 per cent in the 12 months from 8 August 2024 to 7 August 2025, 4.2
per cent from 8 August 2025 to 7 August 2026, and for each subsequent
12 month period, by more than the amount equivalent to the specified
growth rate based on the Childcare Services Cost Index developed by the
Australian Bureau of Statistics; or
ii. in relation to either time period specified above, such other fee growth
percentage caps as may be determined by the Department (see section
9.1 of the Grant Opportunity Guidelines for further detail).
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