DEEWR centre over-payments - is your centre affected?

[~Kaz~]

Is anyone else's centre affected by the recent legislation changes that are allowing DEEWR to take back over-paid money from child care centres? They over-paid hundreds of centres around Australia in late 2008 and early 2009. They could not immediately get the money back because the legislation at the time basically said, Dept mistake = Dept loss. They've had the law changed, waited until the ABC centre sales were finalised (because they wiped all ABC centre debts) and now they've given child care centres that were overpaid, three weeks before they simply take their money back.

Don't get me wrong, I'm all for the support of the ABC centres and wiping their debt makes sense if you want another company/group to purchase them. I am really pleased for all of the families and children in those centres that the govt was able to support them.

BUT I am really angry and upset that they've now turned around to the centres they overpaid and basically given them no choice, no ability to negotiate a payment plan and done no assessment of whether individual centres can actually afford to pay this money back!

The centre that DS attends is a community based, not for profit centre. It was already in a touch-and-go position financially before this. Now DEEWR have just given them a 52 week payment plan to repay nearly $39 000. This is money the centre does not have and it basically adds up to a wage. They will not drop their standards so if DEEWR goes ahead and takes this money (starting next week I think), they will have to close a room and potentially it could see the centre go under. This totally stinks. The centres were over paid through no fault of their own and had no way of knowing they had been over-paid either. They were informed by mail about 3 weeks ago. They can't just refuse to pay it back because DEEWR are going to take hundreds of dollars a week before the centre even sees it.

How can the government carry on about providing quality child care and save so many ABC centres with one hand, while with the other hand, taking money from centres like DS's - quality centres that are struggling to survive anyway! If the centre closes, I will have to stop work.

Just wondering if anyone elses centre is affected and what your centre is doing about it? I have written to my local member and plan another e-mail to Kate Ellis.

[butterfly_warrior]

I'm assuming that if our centre was effected, we would know by now? I hope they manage to find a way to stay open - it's going to have a huge impact on a lot of families in a lot of places if a whole heap of centres close.

BW

[~Kaz~]

Yeah BW if they were affected and going to have difficulty paying, they would surely have let you know. My centre received their letter on the 27th May and they're planning to start taking the money next week. I have heard there are some centres (obviously for profit ones) that are just going to pay the money without question. I guess if a centre can afford it, that's probably the right thing to do but my centre really can't afford it. They lost a $40 000 subsidy for being the only centre in the town when another one opened last year and they are still recovering from that loss without this new issue.

[Nai]

That is really bad! I would definitely be lobbying your local MP, councillors and Kate Ellis. The centre should also put forward it's case a notice to the government of likely closure and hardship as well as to the local council - the council may be able to loan the money in the short term and arrange a payment plan if the government won't come to the party.