Uncertainty over future funding of Worker Retention Payments

Since the Federal Budget was released on 12 May 2026 (see ACA NSW's summary), the absence of certainty about the future of the $3.6b Worker Retention Payments (to support the 15% wage increase subsidy) has caused substantive unrest and concern.

Federal Minister for Education (the Hon Jason Clare MP) made the strongest public statement thus far: “It’s working and we will have more to say later this year". (SOURCE: The Australian, 15 May 2026)

ACA and ACA NSW believes without clarity around this funding, our sector will be unable to plan their operations for the immediate future, let alone the years ahead. 

ACA NSW too also publicly engaged a Federal Government Minister (the Hon Chris Bowen MP), a teal Federal Parliamentarian (Allegra Spender MP) and Senator Andrew Bragg at the Business Western Sydney's Budget Forum.

Federal Minister Bowen publicly suggested that ACA NSW's question is for Federal Minister Clare to answer. And Ms Spender and Senator Bragg effectively deferred our sector's concerns to Minister Bowen.

ACA NSW invites members and Approved Providers to attend the upcoming Inner Circle evening on Monday, 25 May 2026 where the future of the Worker Retention Payments will be discussed, amongst other issues facing our sector.

For any further information/clarification, please contact the ACA NSW team via 1300 556 330 or nsw@childcarealliance.org.au.

PUBLISHED: 15 MAY 2026