4. Child care
Clients with young children will have rejoiced at government’s decision on April 2 to ensure child care was free – at least until June 30. For some families, this meant a cost saving of up to, and over, $1000 per week.
Not everything has been smooth sailing in the child care sector though. Some centres have refused to accept children back into care without notes frovm their parents’ employers declaring them to be essential workers. Other centres have cut back staffing as their revenue was effectively halved by the new funding mechanism.
Most child care agreements have notice periods, commonly 4 weeks, that must be provided in order for a child’s place at a care centre to be cancelled. With all indications suggesting that the standard Child Care Subsidy (CCS) arrangements will be back in place by June 28, parents who have been considering changing provider, or withdrawing their children, have only a short time to provide notice without having to pay for the notice period.
Under normal CCS arrangements, unless a child is present in care on their final day, no CCS is payable to the parents from the last day the child physically attended the care provider’s premises. In the current environment, that may be as long ago as March – and could result in some nasty bill shock if the last care day is at a time when normal CCS arrangements have resumed.
This time is unlike any in living memory – and this is equally true for the planning profession. To help clients through these difficult weeks, months and, potentially, years, planners cannot rely on their old plans and strategies. Nimble thinking and forward planning is as important to helping clients survive this pandemic financially as it is to preserving the population’s health.
The information contained in this publication is based on the understanding KeyInvest (ABN 74 087 649 474 AFSL No. 240667) has of the relevant Australian legislation as at the date shown in this publication.
The information contained in this publication is of a general nature only and is intended for use by financial advisers and other licensed professionals only. It must not be handed to clients for their keeping nor can any copies of sections of this publication be given to clients. KeyInvest is not a registered tax agent under the Tax Agent Services Act 2009. We recommend that your client be referred to their registered tax agent or legal adviser prior to implementing any recommendations that you may make based on the information contained in this publication.