![]() The decline in enrolments affects the revenue of providers and their ability to keep operating. Some families have done this out of health concerns and some because they are now providing care to their children at home as a result of being stood down, losing employment or working from home. In response to the coronavirus pandemic, many families have unenrolled their children from child care. An additional $268.5 million was spent on other programs to support child care providers. In 2018–19, the Australian Government spent $7.4 billion on the CCS (p. The payment was paid directly to providers to be delivered to families in the form of a fee reduction. The percentage received was determined by the family’s income and the hours subsidised determined by the parents’/carers’ level of work, training or study. Families received a percentage of the fees charged or the hourly fee cap (an amount set by the government)-whichever was lower. The CCS was means tested with rates of payment based on family income, hours of care used, type of care used, and parents’/carers’ level of work, training or study. Most of the assistance was delivered through a fee assistance payment: the Child Care Subsidy (CCS). Until 6 April 2020, the Australian Government provided both child care fee assistance to families and direct assistance to services. ![]() The new system will be reviewed after one month and an extension will be considered after three months. The main changes were made via a legislative instrument: the Child Care Subsidy Amendment (Coronavirus Response Measures No. The changes took effect on 6 April 2020 and remain in place until 28 June 2020. ![]() The new arrangements make child care services fee-free for families. On 2 April 2020, the Government announced new funding arrangements for the early childhood education and care (ECEC) sector in response to the coronavirus (COVID-19) pandemic and its impact on child care enrolments and attendance. It was amended on to correct an error in the section detailing the cost of the new child care funding arrangements. This FlagPost was first published on 6 April 2020.
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