Index
To read the message from Family Day Care Australia,click here(Word, 101k).
To read the latest update regarding Child Care Services, click here.
DEFGRAM 664/2008 refers. Due to technical issues, any Defence employees that have attempted to register for updates from the Defence Child Care Program using the defence.childcare@defence.gov.au address may get an "undeliverable" message.
Any employees that registered prior to 1300hrs on 24NOV08 are requested to re-register using the above address to ensure that they receive any updates.
Defence Child Care Program-Update- 27 November 2008
The purpose of DEFGRAM 684/2008 is to provide personnel with children at Defence Child Care Centres with updated information regarding the situation with ABC Learning Centres Ltd.
Reports in the Media on ABC Child Care Centres
You may have read reports in various media forums that ABC child care centres have been identified as been on hitlists or under the axe. You may have also identified that all the Defence Childcare centres are on these list.
All Defence child care centres are on the list for further review at the request of Defence to ensure that all 18 Defence centres are treated as one entity. This does not mean that they are identified for closure. Defence continues to work closely with the Receiver and DEEWR to ensure that all of our Defence owned centres are considered in an inclusive and comprehensive manner to enable all of them to continue operations.
The Receiver and Defence are expecting to be able to provide further updates within the next week on the Defence-owned centres and the Defence expansion centres.
Michael Callan
Director General
Defence Community Organisation
Purpose:
The Defence Child Care Program helps mobile Defence families by facilitating priority of access to child care. Defence families who are required to move on posting may seek priority placement at 39 Child Care Centres around Australia. The focus of the program is on helping families to get access to some form of child care on arrival in their new locality. You can find more information on the Child Care Policy here.
Defence has a contract with ABC Corporate Care to operate the Defence Child Care Centres. Since this contract started in July 2005, Defence families have more child care options available to them than ever before. This is due to more available priority places and the expansion of the industry. Further information on the contract with ABC Corporate Care is available here.
Priority of Access:
The Defence Child Care Centres use Defence’s Priority of Access Guidelines (POAG) to determine the order of families on the waiting list at any centre. This enables Defence families to be prioritised ahead of other families in these centres. Under the guidelines, families are allocated points based on their mobility and family composition. Families with more points are higher up the priority list than families with fewer. The guidelines have been designed to support the requirement for Defence families to move for service reasons, which is the reason for the child care program. The ABC staff in each Defence child care centre maintain their waiting lists and process applications according to these guidelines.
A copy of the Defence Priority of Access Guidelines can be found at POA Guidelines
Toll Free Enrolment Line – 1800 222 543:
Families can contact the ABC National Enrolments Call Centre on 1800 222 543, which will provide them with general information on childcare in their area of interest and advise on what options are available, such as Priority of Access and salary packaging. The Centre can also transfer callers through to the family’s preferred child care centre, where they can speak to the Centre’s Director about availability and waiting lists. The Call Centre operators have access to information on approximately 1000 child care centres in Australia, including the 39 Defence Child Care Centres.
The National Enrolments Call Centre is open Monday to Friday from 8.00am to 6.30pm EST, and an after hours service operates outside these times.
Fees:
The fees charged at Defence Child Care Centres are set at reasonable market rates, based on fees for similar services in the same location. Any fee increases are generally a direct result of increases in the cost of providing care. Fees remain at reasonable rates and similar fee increases occur at any child care centre in the community.
The contract requires that any fee increase proposed by ABC is approved by Defence following extensive benchmarking against like services in the locality.
Complaint Management:
As a licensed child care provider, and under the Defence contract, ABC is required to operate a parent complaint/grievance policy and to deal with all complaints. Where parents have a concern they should, in the first instance, address their complaint to the ABC Centre Director, who will respond as appropriate. If the Centre Director is unable to address the complaint or if parents are not satisfied with the response, the complaint can be elevated to the ABC Area Manager. If you want more detail on the ABC parent complaint/grievance policy, copies of the ABC Policy and Procedure Manual are available at each ABC Centre.
ABC prepares a report of each complaint that is provided to DCO so that any contractual issues are evident and can be actioned. The role of Defence Community Organisation (DCO) is to manage the contract, and DCO only gets involved in complaints where the complaint policy has not resolved the issue, or where contractual issues have been raised. Any complaints received by Defence are forwarded to ABC to action. Where the complaint process is used appropriately, issues are resolved promptly and effectively.
Further general information about lodging a complaint about child care services can be found on the following web site:
http://www.ncac.gov.au/families_and_children/families_children_index.htm#lodging
What is salary packaging of child care?
An arrangement between Defence (the employer) and you (the employee) where you agree to forego part of your future entitlement to salary or wages, in return for a benefit in the form of child care to the same monetary value of the salary you would normally receive. The combined total of salary or wages and the benefit must not exceed the total of your normal salary. When you ask Defence to pay for your child care as part of your salary package, you are choosing to forego all entitlement to Child Care Benefit (CCB) and the Child Care Tax Rebate.
What is not salary packaging?
A regular pay deduction (or direct debit) from your salary or wages to pay for child care fees does not constitute a salary packaging arrangement.
Eligibility for Child Care Benefit and the Child Care Rebate
To be eligible for CCB, you or your partner must be liable to pay for the child care. The issue of liability depends on who has the obligation to pay the child care fees.
If you salary package the cost of child care fees, this means that Defence as the employer is liable for the cost of all child care fees that are paid under salary packaging arrangements, so Defence (and not you) has the legal liability to pay the fees. You are therefore not eligible for CCB or the Child Care Tax Rebate.
You must choose between either salary packaging OR receiving CCB and the Child Care Tax Rebate.
Considerations prior to salary packaging child care fees.
If you are considering entering into a salary packaging arrangement for your child care fees, you are strongly encouraged to seek independent financial advice.
This should help in determining whether the arrangement would be financially
advantageous for your family.
Salary packaging is not beneficial for many families and it is very important that you understand the relative benefits of salary packaging against claiming CCB and the Child Care Tax Rebate.
What to do if you salary package and have claimed CCB and/or the Child Care Tax Rebate
If you salary package you child care fees and have claimed the CCB and/or the Child Care Tax Rebate you should immediately contact Centrelink and arrange to correct the claim and repay the Child Care benefit. Centrelink will then correct their records and the Tax Office will issue an amended assessment regarding the Child Care Tax Rebate.
Further information.
Further advice on Fringe Benefits Tax can be obtained from the Defence Tax Management Office (DTMO) Hotline on 1800 806 053; however be advised that DTMO does not provide personal tax advice. Those who require advice on personal taxation matters should contact their personal tax advisor or the ATO direct.
Family Assistance Office 136151
Australian Taxation Office 132861
If you would like further information about the Defence Salary Packaging Scheme, contact Smart Salary on 1800 632 496. More information, including a list of Centres that offer the salary packaging option to Defence families, is available at:
http://www.smartsalary.com.au by entering the employer code A100.
The purpose of the Extended Child Care Program is to improve the availability and accessibility of work-related child care for Defence families, including occasional care, before and after school care and family day care. The Extended Child Care Program (ECCP) can provide funding to child care organisations that provide such services, with funding provided on a demonstrated needs basis as part of a competitive process.
Who can apply?
Organisations that provide work-related child care to Defence families particularly in relation to Family Day Care and Occasional Care.
Community groups must be incorporated to be eligible to receive Commonwealth Government funding and employ child care workers that meet the necessary State and Territory Regulations. All applications for funding must include copies of the incorporation, constitution and insurance policies.
How to apply:
A copy of the guidelines (PDF, 39k) and application form (PDF, 11k) can be downloaded from this site; or contact the Defence Child Care Program team on 02 6127 2311 for further information.
Completed applications for funding will be accepted throughout the year for consideration. Applications should be directed to:
In response to the demand for more child care providers nationally, a range of initiatives are available through either the Defence Child Care Program or the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) to assist with the initial set-up costs involved in establishing a Family Day Care (FDC) business.
Reimbursement can only be claimed through one agency: that is, either Defence or FaHCSIA. Once you/your partner have received reimbursement the set up expenses cannot be claimed as work-related expenses in preparing your annual taxation return.
What does Defence reimburse?
Through the Defence Child Care Program, Defence can reimburse the ADF member for set-up costs incurred by their partner in establishing a family day care business.
Is there an FBT liability?
Reimbursement of initial set-up costs through the Defence Child Care Program will be used in calculating the total fringe benefits tax (FBT) liability for the Department of Defence. While you are not required to pay this amount, the grossed up fringe benefits amount will be reported on the ADF member’s payment summary where the total benefits received by the member over the FBT year (1 April to 31 March) exceeds $2,000. This may have an effect on eligibility for Government pensions or benefits and on child support payments.
Approved initial set-up costs.
The following initial set-up costs have been approved for reimbursement on completion and return of receipts to the Child Care Program:
- First aid certificate
- Public liability insurance
- Police checks
- Car safety certificate
- FDC scheme registration fee
This list is only to give an indication of what can be reimbursed, as some Family Day Care schemes cover the cost of some of the prerequisites, and other Family Day Care schemes do not. Each application will be individually assessed and processed by the Defence Child Care Program in DCO HQ.
Application form.
To apply, complete the application (PDF, 16k) for reimbursement of initial set-up costs, attaching receipts. The form requires the signature of the ADF member to acknowledge that receiving reimbursement may result in the grossed up FBT amount being reported on the ADF member’s payment summary.
FaHCSIA Family Day Care Start Up Payment.
Information regarding the Family Day Care Start Up Payment can be found at www.facsia.gov.au or by telephoning 1300 653 227 and asking for the Family Day Care Start Up Payment Assessment Team.
Fact sheets and claim forms are available through this service.
Child Care Policy
The purpose of the Defence Child Care Program is to aid mobility by facilitating priority of access to child care for Defence families where the local community is unable to meet the demand for child care places.
Mobility is the principal driver for the facilitation of child care. Accordingly, the focus of the program is on facilitating priority of access to child care for mobile Defence families so that they can access some form of child care on arrival in the gaining locality.
Salary Packaging Policy
Salary Packaging of child care is not a Defence policy, as the benefit derives from taxation law; namely the Fringe Benefits Tax Assessment Act 1986. In order to offer FBT-exempt salary packaging of fees, the child care must meet the requirements of the FBT Assessment Act and Defence must have a supportive ruling from the Australian Taxation Office. Obtaining a ruling so that Defence can offer FBT exempt salary packaging in the Defence Corporate Centres that offer priority for Defence families remains an ongoing project.
The Defence Child Care Contract
The contract between Defence and ABC Corporate Care Pty Ltd came into effect on 1 July 2005. The contract requires ABC to manage the original 18 Defence-owned child care centres, and also includes an expansion program to improve access to child care for Defence families. When ABC took over the contract for the original 18 Defence child care centres, they inherited the existing fee structure; however unlike the previous contract, ABC is responsible for meeting all the costs of providing child care in accordance with the contract, including building maintenance, through income derived from parent fees.
Defence always intended the contract with ABC to mark a significant change to Defence’s relationship with child care. This change was necessary to achieve increased access to child care and to ensure the longevity of the child care program, while still maintaining the same general types of services. One aspect that remains unchanged, however, is the minimum contractual requirement that services provided by ABC meet or exceed community standards.
In essence, the Defence contract with ABC requires that all centres must, at a minimum, meet the relevant State and Territory licensing regulations and participate in the National Childcare Accreditation Council Quality Improvement program. Centres must be staffed to meet the licensing requirements of the relevant State or Territory. These requirements are different in every State and Territory and are regulated by the relevant State or Territory body. All staffing matters are ABC’s responsibility and Defence plays no role in resolving industrial issues, except where they raise contractual issues in relation to licensing requirements.
Each centre also provides different services; for example, each Defence centre has different operating hours, a different number of places available in each age group, and only some provide services such as meals, nappies and linen.
Expansion Program
ABC has also implemented the Defence Child Care Expansion Program, which is a significant element of the contract. Through the program, Defence is increasing the number of priority child care places available to Defence families. These centres are known as Defence Corporate Centres.
The Expansion Program is guided by a steering group including representatives from the three Services, the Defence Housing Authority, Defence Families of Australia, Defence Support Group and the Defence Community Organisation. The focus of the group is to secure additional centres both in areas of high unmet need and significant Defence population.
As a result of the contract with ABC, the number of priority long day care places offered now exceeds 2,400 and management of Defence child care centres occurs at no cost to Defence.
The Defence Child Care Program (DCCP) team contacts are:
ABC Corporate Care - http://www.childcare.com.au
ABC National Enrolments Call Centre - 1800 222 543 (from Overseas +61 7 3906 3398) or email enrolments@childcare.com.au
Department of Family, Community Services and Indigenous Affairs – http://www.facsia.gov.au
Family Day Care Australia--http://www.familydaycare.com.au the national industry association for family day care.
Office of Early Childhood Education and Childcare - fact sheets : http://www.oececc.gov.au/child_care/fact_sheets.htm
Child Care Benefit – http://www.familyassist.gov.au/internet/fao/fao1.nsf/content/payments-ccb
National Childcare Accreditation Council - http://www.ncac.gov.au/
Child Care Access Hotline - 1800 670 305
Flexible Remuneration Packaging Scheme – Smart Salary http://www.smartsalary.com.au or 1800 632 496
Have a look at the Frequently Asked Questions page for responses to some of the common queries about the program.
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