Parents will not have to pay childcare fees if centres close because of the coronavirus pandemic, but the sector is warning government funding would fall short in the event of widespread shutdowns.
This overrides individual childcare agreements that often have clauses allowing centres to charge during times they are closed, such as public holidays.Mr Tehan said childcare providers could access grants through the $14 million Community Child Care Special Circumstances Fund to help cover costs, including wages, in the event of closures.
Ms Page said it was unclear whether the special circumstances fund would reimburse childcare centres for all lost revenue, or just lost Child Care Subsidy. All childcare centres charge more than the subsidy since the legislation requires a co-payment from parents and many charge well above it. "Small business [owners] have mortgaged their own homes, small not-for-profits have very little reserves, even big organisations can't claim on business continuity insurance because of the nature of the pandemic so they'd have to draw on reserves."Ordinarily, Child Care Subsidy is only paid when children attend childcare but Mr Tehan said individual families in self-isolation could use their entitlement of 42 days of absence without losing the subsidy.
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