Publication:Sea Talk Autumn 2006/Update of Defence child care issues for Navy
From the Directorate of Navy Employment Conditions
Hundreds of Defence families are awaiting a ruling from the Australian Taxation Office on whether salary sacrifice will be allowed for use of six new Defence Corporate Centres added to the Defence Child Care program last November.
Salary sacrifice is currently only available in Defence Child Care Centres that were in operation before July last year (the list is at www.smartsalary.com.au).
We are hopeful of a favourable outcome.
In the meantime however, members accessing the new Defence corporate centres or any other registered form of child care can access the Child Care Benefit (CCB) and Child Care Rebate (CCR) to assist with child care costs. These forms of assistance are provided through the Government's Family Assistance Office and the Australian Taxation Office.
CCR and CCB are not available when you use salary sacrifice and some Navy people actually find that salary sacrifice options are not as financially beneficial to them as the CCB and CCR. This will depend on your individual financial situation.
Members are encouraged to seek independent financial advice when considering the benefits of salary sacrifice compared to assistance from CCB and CCR.
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Background
It is clear from feedback to both the Sea Change Implementation Management and Reporting System (SCIMARS) and fireside chats with the Commander Australian Navy Systems Command, CDRE Geoff Geraghty, that access to child care centres, cost of child care, and ability to salary sacrifice continue to remain concerns for many in the Navy.
The Directorate of Navy Employment Conditions (DNEC) is a member of the Defence Child Care Expansion Steering Committee and has responsibility for staffing issues relating to child care for Navy members. The Defence Community Organisation (DCO) is responsible for the operation of the Defence Child Care Program, including managing the contract for the provision of child care services for Defence.
New Defence child care contract
Most would be aware that, after wide consultation with the child care industry and stakeholders, a new contract to provide child care services for the Defence Child Care Program was awarded to ABC Corporate Care Pty Ltd on July 1 last year.
ABC Corporate Care provides long day care and outside school hours care through:
- Managing the Defence child care centres around Australia;
- Embarking on a significant expansion program over the next 12 months that will be achieved through the provision of new Corporate Centres that support significant numbers of Defence children;
- Ensuring that all Corporate Centres utilise the Defence priority of access guidelines to ensure that mobile Defence families have priority access to placement in these centres; and
- Providing a national call centre service on 1800 222 543 at no cost to Defence families.
The Defence Child Care Expansion Steering Committee considers potential new sites for inclusion in the Defence Child Care Program. Navy requirements for child care by location are included in this forum.
For Navy, access to child care in the inner Sydney area is considered urgent while Darwin, Rockingham, Canberra and Cairns have also been identified as key areas for Navy.
An additional six Defence Corporate Centres were added to the Defence Child Care program in Nov 05 (one in Sydney, two in Townsville, two in Adelaide and one in Darwin), bringing the total number of centres in the program to 24. This expansion program is continuing with additional centres in key Navy areas expected to be added by the end of the year.
Cost, access and salary sacrifice
Defence recognises that access to child care can be difficult and that the cost of care is expensive, however the bottom line is that members are responsible for the cost of child care for their children.
The main reason Defence provides child care is to support mobility. Mobile personnel do not have the same opportunity to make arrangements for child care as those members who are already in location.
The Defence Priority Access Guidelines that operate in all Defence Child Care Centres reflect this principle.
While the ability to reduce child care costs through salary sacrifice is a significant inducement into Defence child care centres, it is not the reason why Defence provides child care.
Stay tuned for a result on the submission to the ATO on salary sacrifice. We'll let you know as soon as it's available.
More information
Further information and frequently asked questions and answers on the Defence Child Care program (including waiting list forms, a list of centres in the program, and the Defence Priority Access Guidelines) can be found at:
Information on the CCB andCCR can be found at:
- www.facs.gov.au/internet/facsinternet.nsf/childcare/nav.htm
- www.ato.gov.au/individuals/content.asp?doc=/content/52998.htm&page=4&H4
Points of contact
ABC's National Enrolment Call Centre: 1800 222 543 Smartsalary: 1800 632 496.
Defence Child Care Expansion Steering Committee can be contacted through the DCO website feedback link or by contacting the Executive Officer, Defence Child Care Program - karen.lange@defence.gov.au.
