Brimbank families could face hikes in their family day-care fees of up to $1700 from July 1 when federal government funding changes take effect.
Under the current model, all family day-care services are eligible for the government’s community support program (CSP) funding.
But the Education Department will end all contracts with family day-care services at the end of this financial year, June 30.
Operators will have to reapply for federal funding and be assessed under tightened eligibility criteria.
There are 31 private family day-care services in Brimbank, as well as the council’s Brimbank Family Day Care [FDC] service, which has 56 educators looking after 481 children.
The changes mean most, if not all, Brimbank services will lose CSP funding next year, the council predicts.
Municipal Association of Victoria president Bill McArthur said the changes could cost families an extra $1700 a year for full-time care.
The council has vowed to continue to run Brimbank services based on a new financial model and new fee structure, following a review.
Brimbank council would not provide Star Weekly with a copy of its review for “commercial in confidence reasons”.
Nor would it disclose the new fees for the Brimbank FDC service.
Council administrator Jane Nathan said Brimbank FDC generated a gross income of $2.2 million a year. This goes back into the local economy through payments to educators, she said.
“It looks after 205 children; 58 per cent of all the services are located in Sunshine. There’s a diverse community – from Vietnamese, Indian, Sri Lankan and Bangladeshi – who are educators,” Ms Nathan said.
“Those educators are people who are operating a small business. Not only are they looking after small children but they are learning to manage a small business.
“They’re learning skills that will, as the children grow, contribute back to our community,” she said.
The federal government did not respond to Star Weekly’s request for comment on the impact of family day-care changes.
