Index
Purpose
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.
Background
In November 2008 ABC Learning and its group of companies, entered Voluntary Administration and Receivership. Defence contracted with ABC Corporate Care Pty Ltd, a wholly owned subsidiary of ABC Learning Centres Ltd. This contract commenced in June 2005. As a result of the receivership, Defence terminated the contract with ABC Corporate Care under provisions permitting termination in a circumstance where the contractor entered administration or receivership.
Current Status
New Defence Child Care Contractor
Defence entered into a new contract with B4Kids Pty Ltd on 9 April 2009 following the termination of the ABC contract. The term of the contract is one year with a potential one year extension, this is in accordance with Commonwealth Procurement Guidelines, which requires Defence to go to an open tender after a direct procurement process. The terms and conditions of the B4Kids contract are very similar to those of the contract that Defence had with ABC Corporate Care.
The team at B4Kids has over ten years experience in the management of corporate child care programs and already has a high level of understanding of the Defence centres and a good relationship with centre staff. Since 2007, B4Kids (then known as Corporate Care Australia) has been engaged by ABC as a completely independent sub-contractor to manage the Defence contract, under the corporate governance of ABC.
The B4Kids Contract
Most of the team at B4Kids have been involved with the Defence Program since July 2005, in a contract management capacity via ABC Learning. In July 2007, they formed a new company, independent of ABC Learning, to perform the contract management duties for Defence. During this period they did not have management control over the Centres, so their capacity to make operational changes at a Centre level was very limited.
B4Kids is committed to providing a professional and personalised management service designed to ensure local support is readily available to the staff at each Centre. They recognise the importance of working alongside the existing Centre team to provide a supportive management structure which will result in the provision of high quality early learning services for Defence children.
B4Kids will focus on supporting the Centre Directors as Managers of their local Centre. They will be given greater flexibility and authority in their role, as they are closest to the families and the community they are supporting.
B4Kids’ management philosophy supports a collaborative and consultative approach to change, and they will encourage and rely on feedback and advice from the Centre Directors, team members, families and Defence when making decisions regarding the Centres. Their team also understands that each Centre has different needs which are determined by the families and children attending the Centre and the local community. So, wherever possible, the Centres will be run in accordance with these needs.
Further information regarding B4Kids Centre Philosophy is available at http://www.b4kids.com.au/
Priority of Access
Access to places at Defence child care centres is determined through the application of the Defence Priority of Access Guidelines (Defence POAG). This enables Defence families to have priority to available places in these centres, ahead of other families. The guidelines emphasise and support the requirement for Defence families to relocate for service reasons (referred to as mobility) as the principle driver for child care provision. This is achieved through applying a point system based on family composition and mobility. The B4Kids staff in each Defence Child Care Centre maintain waiting lists for care and offer child care places according to these guidelines.
A copy of the Defence Priority of Access Guidelines can be found at POA Guidelines
Enrolment
Families should contact the Centre directly when making enquiries regarding enrolment. They will be provided with general information on child care at the Centre and advised on what options are available in terms of Priority of Access and waiting lists.
A list of all Defence Centres, their locations and contact details is available here.
Locations of Defence Child Care Centres can be found here.
Employment Opportunities
B4Kids also offer employment opportunities for Defence partners working in the child care industry. This includes transferring Defence partners employed by B4Kids between their centres when posted, where vacancies exist.
Fees
Centre fees will remain at reasonable market rates and will not increase as a result of the change B4Kids management. Fee increases generally occur around July each year and are a direct result of increases in the cost of providing care and similar increases would be expected at any child care centre in the community.
The contract requires that any fee increase proposed by B4Kids 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, B4Kids is required to operate a parent complaint/grievance policy and to deal with all complaints. Parents should in the first instance, address their complaint to the 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 should be elevated through the B4Kids management structure. The parent complaint/grievance policy is available at each Centre. B4Kids will prepare 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 it is only appropriate for DCO to intervene in complaints where the resolution is inappropriate or raises contractual issues. Any complaints received by Defence are forwarded to B4Kids to action. Experience shows that 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.asp#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 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 FRP 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 Extended Child Care Program (ECCP) will provide funding to child care organisations 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,30k) and application form (PDF, 11k) can be downloaded from this site; or contact the Defence Child Care Program team on 02 6127 2310 for further information.
Completed applications for funding will be accepted throughout the year for consideration.
In response to the demand for more child care providers nationally, a range of initiatives are available through either the Defence Child Care Program (DCCP) or the Department of Employment Education and Workplace Relations (DEEWR) 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 DEEWR. 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?
Defence, through the DCCP, reimburses ADF members for FDC set-up costs incurred by their partner.
Is there an FBT liability?
Reimbursement of initial set-up costs through the DCCP 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 an 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
The above list is indicative only, as some FDC Schemes cover the cost of some of the prerequisites, and other FDC 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, 503k) 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.
DEEWR Family Day Care Start Up Payment.
Information regarding the Family Day Care Start Up Payment can be found at http://www.deewr.gov.au/EarlyChildhood/Programs/ChildCareforServices/SupportforChildCareServices/FamilyDayCare/Pages/FamilyDayCareStartUpPayment.aspx
or by Telephone: 02 6240 0650 Fax: (02) 6123 7336 or (02) 6123 7137 Email: fdc@deewr.gov.au .
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 Program (DCCP) team contacts are:
B4Kids –1300 265 600 . www.B4Kids.com.au
Depatment of Employment Education and Workplace Relations : www.mychild.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
8/01/10 - Media release - New online tool to help families budget for child care
Minister for Early Childhood Education and Child Care Kate Ellis today launched a new online tool to help families budget for child care.
Have a look at the Frequently Asked Questions page for responses to some of the common queries about the program.
Media Issues
For the latest Media Issue information, please go to the Media Issues page on this website.
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