Education Administration Levy

218 Mr GARDNER (Morialta) (9 August 2016). With respect to the 2016-17 State Budget—Budget Paper 4, volume 2, page 16: Program Summary indicates sale of goods and services has increased from $2.7M in 2014-15, and a $2.8M budget for 2015-16 to a $6M actual result in 2015-16. While on page 17, $3M of this is identified as being related to increased revenue from family day care due to the introduction of the educator administration levy.

1. What is the purpose and benefit of the educator administration levy and who pays it?

2. With $7.4M budgeted in 2016-17, the explanation for this increase from the $6M collected last year is $900,000 extra from the educator levy and $400,000 from higher revenue from the sale of land and buildings. What land and buildings were sold?

The Hon. S.E. CLOSE (Port Adelaide—Minister for Education and Child Development, Minister for Higher Education and Skills): I have been advised:

1. The educator administration levy is paid on a fortnightly basis by 'active' Family Day Care educators registered with the Department for Education and Child Development (DECD) Family Day Care (FDC).

In the May 2014 federal budget the Australian government announced changes to the Community Support Program (CSP).

These changes have had a significant impact on services across Australia, with the Australian government reducing support by $157 million. For DECD FDC, the changes have resulted in an estimated reduction of $3.2 million in operational funding for 2015-16. This represents a 75% reduction in funding from the Australian government.

As a result the educator administration levy was introduced on 5 October 2015 at 65 cents per child per hour.

DECD FDC did not make the decision to pass on the federal cut lightly. The funding has ensured that there is a viable and accessible family day care service for families.

DECD FDC is a not-for-profit service. The educator administration levy remains set at 65 cents per hour per child to continue operation of the FDC schemes on a cost recovery basis. The coordination units provide a range of services to support FDC educator including (but not limited to):

regular home visiting

home safety assessments

curriculum and planning support

ongoing professional learning

advice and monitoring compliance with the National Law, Regulations and National Quality Standards

referral of families

specialist business centre for the administration of, and compliance with, child care payments.

2. The increase of $400,000 from land sales is the estimated revenue to be received in 2016-17 from the sale of early childhood facilities.