Colleagues,
We've sent this email to Victorian providers and services about a Ministerial rule made this week. It enables further COVID-19 support for kindergarten in Victoria.
Please share across your networks as you see fit.
Regards, Digital Communications, ECCC
Vic Govt can pay kinder gap fees
The Victorian Government can make third-party payments towards the out-of-pocket fees for kindergarten children.
Parents who receive Child Care Subsidy (CCS) must make a co-contribution to their child care fees under Family Assistance Law by paying the gap fee. The gap fee is the remainder of the fees after CCS has been applied.
This week, a Commonwealth Ministerial rule was introduced in support of the COVID-19 recovery that allows the Victorian Government to pay out-of-pocket fees for four-year-old and eligible three-year-old children in state-funded kindergarten programs (i.e. enrolments that attract Victorian Government kindergarten per capita funding).
The measure supports Victoria’s Free Kinder initiative, which aims to provide families with free or cheaper kindergarten in 2021.
By way of example:
if a session of care fee was $100, and
family CCS was 85% ($85)
the Victorian Government contribution would be $15
meaning $0 gap fee for the family.
In this case, the Victorian Government can pay up to $15 as part of the $2000 fee offset over the 2021 calendar year, and CCS is not impacted for the family.
As the Victorian Government is covering the gap fee, the provider is not required to reduce the actual session fee before applying CCS.
Please note, you must keep records of third-party payments.
Session reports remain the same.
More information on third-party payments can be found on our website.
