What has been announced?
The Federal Government has committed to fund a new worker retention payment for early childhood education and care teachers and educators.
This funding will support a 15% wage increase, with a 10 per cent increase from December 2024, and a further 5 per cent increase from December 2025.
It means a typical educator who is paid at the award rate will receive a pay rise of at least $103 per week, increasing to at least $155 per week from December 2025.
Why is this good for my service?
This $3.6 billion commitment recognises the urgent need to address chronic workforce shortages in the early childhood sector, by directly funding services to pay professional wages.
Funded pay increases mean:
Who can access this and are there any conditions?
Teachers and educators who work in a Child Care Subsidy (CCS) approved centre will benefit from this funding.
This payment will be delivered in the form of a grant, which providers will need to apply for. The Department has said they expect applications to be open from October 2024 and with guidelines available soon.
Funded services will be required to limit fee increases to 4.4% over the next 12 months from 8 August 2024. Noting that service wage costs are usually around 50-80% of total expenditure, annual wage increases are the majority contributor to fee increases and these increases will now be covered by this funding.
Services will also need to engage staff through a workplace instrument that meets grant conditions.
Who is CELA?
Community Early Learning Australia (CELA) is a peak body for early education and care. We have been supporting the sector with advocacy, phone support and training for almost 50 years. We are proud to have been representing small and community managed providers in advocating for professional wages for the education and care sector.
We have been at the negotiating table with Government since July 2023, kicking off the process that has led to this funding announcement. We have been working to finalise the new long day care multi-employer agreement that will be one of the instruments for this funding.
Having played a crucial part in shaping the agreement, we have gained a significant amount of insight and knowledge on how the process works, and how to best support services.
How we can support your service in accessing this funding
CELA’s workplace relations service will directly help providers to meet the conditions and access the government funding. This includes supporting services to have an eligible workplace instrument by joining the multi-employer agreement.
This is a key part of the funding requirements, and one that we can support your service the whole way through the process.
What’s next?
Step 1 – Subscribe for updates
Make sure your service is the first to know all the details on how to access the funding by subscribing to CELA updates.
We have a short survey you can complete here. Once you have completed this, you will receive updates as more details are released, and will be the first to find out how CELA can support your service through this process.
Once completed you will also receive an information pack from us with more information to share with your service.
Complete the survey
Step 2 – Engaging a workplace instrument through CELA
CELA will be directly supporting services to meet the criteria to have an eligible workplace instrument, including by signing on to the Long Day Care Multi-Employer Agreement. We understand that this is a complex process, and we have the expertise and time to provide all the support you need.
A workplace instrument is needed to satisfy the conditions of the grant. The long day care multi-employer agreement would satisfy this eligibility. Access for OSHC providers is in progress through an equivalent workplace process.
The national long day care multi-employer agreement is still being finalised. Once finalised, long day care services can sign on and be covered by the new agreement. This will be one of the fastest routes to meet the eligibility criteria for the government funded pay increase.
Step 3 – Be informed when grants open
Once you have filled out the survey, we will let you know as soon as grant guidelines are released, and grant applications are open.
For further questions on the grant, please see the dedicated Department page: www.education.gov.au/early-childhood/workforce/wages
Timing: Guidelines will be released prior to applications opening in October 2024.