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Early Childhood Education and Care (ECEC) Worker Retention Payment

Funding Providers

Department of Education

Location

Australia Wide

Funding Type

Cash grant G15351

Primary Category

Employment

Eligible to

  • State/Territory Governments
  • Not-for-Profits
  • Individuals
  • Unincorporated Groups
  • Local Governments
  • Businesses

Funding

Total pool: $3,500,000,000

Round(s)

  • Opened 08-Oct-2024 Closes 30-Sep-2026

Purpose

The purpose of this grant is to provide Australian Government funding to support a wage increase for all eligible ECEC workers from December 2024.

Overview

The Australian Government has announced a total investment of $3.6 billion towards the ECEC Worker Retention Payment, of this up to $3.5 billion has been made available for this grant opportunity. The grant funding awarded under this grant opportunity grant will be available from the first business day in December 2024 to 30 November 2026.

Funding provided is not capped but is dependent on a formula based on the labour costs for the charged hours of care provided by a service on a monthly basis and the Commonwealth contribution rate to support a wage increase. Charged hours of care is determined by administrative data held in the CCS system.

The objectives of the program are to:

  • support a meaningful wage increase for a historically undervalued, highly feminised sector that provides an essential service;
  • contribute to the ongoing professionalisation of the ECEC sector; 
  • ensure ECEC remains accessible and affordable to families; and
  • address workforce shortages as the Government considers a pathway to universal ECEC.

Limitations

Eligibility Criteria:

To be eligible you must:

  • be a legal entity that provides CBDC or OSHC services (a Provider). One Provider may apply in relation to one or multiple service locations (Services) that the Provider owns and operates.

The Provider must be:

  • an incorporated or unincorporated body or association; or
  • a private or public company; or 
  • a registered co-operative; or 
  • a state/territory government body, or 
  • a local council; or 
  • an Indigenous corporation; or 
  • a sole trader; or 
  • a partnership.

The Provider must for each service on the application: 

  • have a valid ABN; 
  • have a valid account registered with a recognised Australian financial institution; 
  • be approved by the Department of Education to administer CCS payments as evidenced by a valid and current CCS approval number;
  • meet and maintain all eligibility requirements of continued CCS approval for the duration of your Grant Agreement under this Grant Opportunity;
  • employ eligible ECEC workers under a workplace instrument that meets the conditions of Section 4.3; and
  • not increase their Service fees by more than 4.4 per cent in the 12 months from 8 August 2024 to 7 August 2025 and for each subsequent 12 month period, by more than the amount equivalent to the growth rate as specified in the new ABS input cost index which will be developed specifically for the ECEC sector or such other fee growth percentage caps as determined by the Department (see Section 9.1 for further detail) (Fee Constraint Condition).

Contact Details

Apply

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