Discounted care for early childhood workforce

Who can get a discount

The workforce discount is an optional incentive to help you attract and retain qualified staff.

You can offer the workforce discount to: 

• early childhood teachers and educators
• centre directors and coordinators who hold an ECEC qualification
• cooks.

The employee must:

• work at a Centre Based Day Care or Outside School Hours Care service
• have a child enrolled at a service where they work or that you own. 

How the discount works

The workforce discount:

• is a prescribed discount
• is applied after CCS calculation
• will not reduce a family’s CCS entitlement
• requires the employee to pay at least 5% of the gap fee.

The gap fee is the difference between your fee and the family’s CCS amount. Usually, families who get CCS must make a co-contribution to their child care fees.

A prescribed discount allows third parties or providers to contribute to a family’s gap fee without reducing the CCS entitlement. This can reduce or remove the gap fee.

As a provider, you can:

• choose whether to offer the discount to employees
• determine the discount amount, provided employees pay at least 5% of the gap fee.

How to report the discount

You must report the following in session reports and statements of entitlement:

• the total session fee before applying the discount
• the discount amount
• the type of discount, in this case the workforce discount.

You should not adjust the total session fee before reporting the discount. This is because prescribed discounts do not impact CCS entitlement.

Read more about how to manage prescribed discounts.

Scenarios

Sangeetha the educator

Sangeetha works as an educator at your Centre Based Day Care service. She has one child attending the same service 3 days per week. Your daily fee is $100 for an  8-hour session. Sangeetha’s CCS rate is 70%.

Without a discount:

• Sangeetha’s weekly fee is $300
• Sangeetha’s CCS covers $210 (70% of $300)
• Sangeetha must pay you a gap fee of $90.

With a 50% workforce discount:

• you enter the total session fee of $300 into the session report
• Sangeetha’s CCS remains at $210
• you apply a 50% discount to Sangeetha’s $90 gap fee
• Sangeetha now pays you a gap fee of $45 (50% of the gap fee)
• you enter the discount amount ($45) and select ‘ECEC Educator or cook discount’ on the drop-down menu in the session report.
• Sangeetha saves $45 every week while you retain a valuable educator.

Priya the director

Priya is the director at one of your Centre Based Day Care services. Her school-age child attends one of your OSHC services before and after school 5 days a week. You charge $30 per session. Priya’s CCS rate is 50%.

Without a discount:

• Priya’s weekly fee is $300
• Priya’s CCS covers $150 (50% of $300)
• Priya must pay you a gap fee of $150.

With a 90% workforce discount:

• you enter the total session fee of $300 into the session report
• Priya’s CCS remains at $150
• you apply a 90% workforce discount to Priya’s $150 gap fee
• Priya now pays you a gap fee of $15 (10% of the gap fee)
• you enter the discount amount ($135) and select ‘ECEC Educator or cook discount’ on the drop-down menu in the session report.
• Priya saves $135 every week, helping you retain your centre director.

Mark the cook

Mark is a cook at your Centre Based Day Care service. His child attends the service 2 days per week. Your daily fee is $110 for an 8-hour session. Mark’s CCS rate is 60%.

Without a discount:

• Mark’s weekly fee is $220
• Mark’s CCS covers $132 (60% of $220)
• Mark must pay you a gap fee of $88.

With a 75% workforce discount:

• you enter the total session fee of $220 into the session report
• Mark’s CCS remains at $132
• you apply a 75% workforce discount to Mark’s $88 gap fee
• Mark pays you a gap fee of $22 (25% of the gap fee)
• you enter the discount amount ($66) and select ‘ECEC Educator or cook discount’ on the drop-down menu in the session report.
• Mark saves $66 every week, making it more affordable for his family.

Maximum discount example

Afsa is an early childhood teacher with one child attending your service 5 days per week. Your daily fee is $120 for a 10-hour session. Afsa’s CCS rate is 85%.

Without a discount:

• Afsa’s weekly fee is $600
• Afsa’s CCS covers $510 (85% of $600)
• Afsa must pay you a gap fee of $90.

With a maximum 95% workforce discount:

• you enter the total session fee of $600 into the session report
• Afsa’s CCS remains at $510
• you apply a 95% workforce discount to Afsa’s $90 gap fee, noting she must still pay 5% of the gap fee
• Afsa now pays you a gap fee of $4.50 (5% of the gap fee)
• you enter the discount amount ($85.50) and select ‘ECEC Educator or cook discount’ on the drop-down menu in the session report.
• Afsa saves $85.50 every week, allowing her to continue working full-time as a qualified ECT.

Remember:

• you choose the discount amount
• the employee must pay at least 5% of the gap fee
• you always report the full fee to maintain their CCS entitlement.