Wage Justice for Early Childhood Education and Care Workers (Special Account) (Extending Support and Strengthening Safety) Bill 2026

Senator WALSH (Victoria—Minister for Early Childhood Education and Minister for Youth) (18:52): The full costings of the extension of the worker retention payment will be published in MYEFO. This is an announcement that was made after the budget, and further information will be available at MYEFO. More generally, the government has been aware that there is a mix of employees and contractors in in-home care and in family day care.

What we are doing with this bill is locking in the pay rise for over 215,000 educators and making the pay rise available for up to an estimated 273,000 educators. The way that providers can access the worker retention scheme is by having an eligible workplace instrument in place. As I said earlier, we believe that that is an important way to ensure integrity in the scheme.

Of course, I think it's important to note that the worker retention payment itself is, as described on the label, a worker retention payment. Eligibility for it extends to employees and to providers with employees. But we recognise that there are also operational challenges and constraints for in-home care providers and for family day care providers who operate on different models, and the worker retention payment is not the only scheme that is available to assist these providers.

We recently announced an in-home care sustainability package of $11 million to the in-home care sector, which comprises funding for the extension of the worker retention payment to employees in that sector. It also comprises CCCF funding. That, as well as a dedicated in-home care sustainability grant, has been provided to the in-home care sector.

That whole sustainability package for in-home care has been welcomed by the sector. It's been called 'monumental' by the sector as an intervention by the government to support what is a critically important sector for those families who are unable to access mainstream long day care. We also provide operational support for family day care.

In the recent round 5 of the Community Child Care Fund, there was $14 million in operational support provided to the family day care sector and family day care providers. With this worker retention payment, we are supporting those providers in the sector who have employees. It is a historic commitment to a 15 per cent pay rise.

We think it is important that the worker retention payment applies to employees in the sector and that there is an enforceable instrument to support workers, providers, taxpayers and the Commonwealth in knowing that the money is being directed exactly where it is needed. At the same time, as I say, this is not the only support that is being provided to small businesses that operate in the sector and small providers who operate on a contractor model.

The Commonwealth is providing significant operational support to the sector—to in-home care and to family day care. It is support that has been welcomed.