How the NSW Government can further assist over 5,600 early childhood education and care services and over 66,000 employees

Dear Minister Mitchell,

Please note that this letter will be publicly shared with the Australian Childcare Alliance (ACA) NSW members who operate over 1,600 services, as well as non-members.

Thank you for your letter dated 26 March 2020. Under the circumstances, we respectfully ask for more assistance from the NSW Government, especially to ensure that the sector remains financially and operationally viable during and after the experiences with the Novel Coronavirus (COVID-19) so that over 330,000 children (and the families) can be educated and cared for across New South Wales.

banner what more nsw govt can do

Click here to download a copy of the letter to the
NSW Minister for Education and Early Childhood Learning, the Hon Sarah Mitchell MLC

Although we appreciate that the impact of and responses to the Novel Coronavirus (COVID-19) continues to be evolving, we sincerely believe the following are additional and practical ways in which the NSW Government under its own power can do to assist the over 5,600 early childhood education and care services and its over 66,000 employees:

  1. Appropriate additional NSW funding to all service(s) (when needed) who are called by frontline personnel as parents to assist with their education and care of children, especially if the service(s) has been financially negatively affected by COVID-19.
  2. A written guarantee from the NSW Government that the education and care of frontline personnel’s choice of education and care for their children will be the parents’ decision only.
  3. A fairer Start Strong Funding for privately-owned, community and not-for-profit long daycare services at least similar to that provided by the South Australian, Queensland and Victorian Governments and as originally recommended by Professor Deborah Brennan since 2012. This means an increase of the quantum of funding (ie from $459 per child per year to at least $1,729 per child per year, a relaxation of the 600-hours-per-year requirement, as well as the use of such funds to support for labour costs that currently is denied).
  4. Distribution of the funding for all 3-year-old children and not just those in community preschools as originally announced by Treasurer Perrottet in the NSW Parliament on 19 June 2018.
  5. Should any service be temporarily closed because of COVID-19, that the NSW Government provide written guarantee all grandfathered regulatory provisions relevant to those affected services remain intact when the service(s) is re-opened.

Through Premier Berejiklian’s advocacies at the National Cabinet as well as yours through the Education Council, we ask for your (continuing) assistance for immediate implementation of the following in light of COVID-19:

  1. The distribution of the Commonwealth’s Child Care Subsidies (CCS) without the need for co-contributions from parents regardless of whether the service remains open or shut.
  2. The temporary suspension of the requirement for children to attend their last day of service in order for services to receive the CCS.

In the context of what the NSW Government can additionally provide in terms of relief and support in the face of COVID-19 to businesses that also benefit the service providers of early childhood education and care, they would be:

  1. The increase of the payroll tax threshold for small businesses to $2,000,000 (and not $1,000,000) beginning FY2020/2021.
  2. Grants to businesses to pay 50% of their annual premiums for their workers compensation insurance policies that are due in the next 6 months.
  3. Grants to either local governments or to businesses to pay for Council Rates (or at least the difference between commercial and residential rates) relating to commercial properties that are due in the next 6 months.
  4. Deferral of any debts of small businesses to Revenue NSW for the calendar year 2020.
  5. Grants to small businesses to help them pay for their business insurance policies due in the next 6 months in order to ensure cover for third parties (especially children and families).

We are most appreciative of the fact that our Australian governments and 98% of banks have moved to defer repayments of bank loans and ensure the protection of leases.

ACA NSW would be happy to elaborate further of any of the above proposals should you require any further information and clarification.

Thanking you in anticipation.

Yours sincerely,

Chiang Lim
CEO

PUBLISHED: 30 MARCH 2020