Childcare Charging Fees during Fee Waiver Period

nickeveli on 31/08/2021 - 09:26

I'm in Victoria and all childcare centres are closed unless you are essential.

There are fee waivers in place if you can't use the centres, which in my case I qualify for.

However, my childcare centre is still charging the regular amounts saying that it will build up as a credit towards future amounts owing.

I checked with a neighbouring centre and they appear to be doing the same (I think they're under the same corporate umbrella though).

I'm concerned about the centre going bust and losing that prepayment. Or what happens if we move to another centre?

Anyone else in this situation?

Toys & Kids Childcare

Comments

  • Greem85 on 31/08/2021 - 09:49
    -3

    I guess you'll just have to wait this one out and see.
    If they stay afloat - great, you'll have credit with them.
    If they go bust - you'll sic'em with a debt collector.

    Either way, it will be entertaining ;)

  • robbyjones on 31/08/2021 - 10:20
    +1

    That $ can add up pretty quickly, not sure I would be paying for future services without any idea of when that might be. I know when my kids were little childcare places were hard to come by and if that is the case you might just have to suck it up and cross your fingers unless you have alternate options for child care. If child care places aren't that hard to find then just don't pay it and look for an alternate placement.

    • nickeveli on 31/08/2021 - 11:08

      It does add up quickly for sure. In my case nearly $300 a week for one child. Can't imagine families with 2-3 kids.

      We're on the waitlist for two other centres, so we don't have much leverage with the current centre since they're our only choice.

      It would be a big risk to take him out then try to get him back in.

      • John Kimble on 31/08/2021 - 15:16

        Is that all? Ours was around $170 a day. 😔

        • nickeveli on 31/08/2021 - 18:42
          +1

          That's after the CCS, but my daily rate is well below yours at $120 a day (regional VIC).

          Doesn't make sense for both parents to work after the second kid (esp if you hit the income threshold and are capped at $10k per child), but that's another topic altogether.

  • tsunamisurfer on 31/08/2021 - 10:25
    +1

    How will parents claw back that money?

    Can they simply pause payments once lockdown is finished to use the credit?

    If so, why not just pause now and save extra administration?

    • nickeveli on 31/08/2021 - 11:10

      I totally agree, that's my thought process too. So much extra work—honestly I think it's to paper over potential cashflow problems.

      No idea how we would claw that money back since it's going to pay fixed costs arising now. We're essentially providing an interest free loan.

  • orangetrain on 31/08/2021 - 11:15
    +1

    I bet the Centre is going to still charge after pandemic is over, saying you can afford it now and past payment was because you held a placement.

    You give them more chance to hold your money and you will feel compelled to keep using them due to gambler sunk fallacy.

    I would refuse to pay due to fee waiver but IANOP.

  • Duckie2hh on 31/08/2021 - 11:16

    My centre is waiving the gap payment fee for eligible parents. I would advise against pre-paying for a service where the childcare centre could collapse.

  • Seraphin7 on 31/08/2021 - 11:16
    +1

    They can &%$@ that right off if I were in your circumstance.

    What a load of horse dung.

    Tell them you'll refuse to pay fees while your kids are going … but it will build up future credit for them later.

  • Fredfloresjr on 31/08/2021 - 12:24

    My toddler is at Leichardt Montessori and is not charging any $$ as long as you informed them 1 week ahead.

  • LoneWolfPodcast on 31/08/2021 - 16:01

    It doesn't make sense that they can do that.

    I would ask the following, via email.

    What happens if you do not wish to build up credit?

    How long will they expect you to build up credit?

    When you will be able to use the credit? Eg if you have $900, does the credit get used the first 3 weeks back?

    • nickeveli on 31/08/2021 - 18:39
      +1

      I've finally got word back from the centre. They said they are charging everyone upfront and at the end of the week if your child didn't attend they would credit your account with the gap fee waived.

      Seems highly illogical since those who would attend would be in the minority, so just bill those individually.

      They 'assure' me that only 2 weeks of credit will build up. And they reminded that were meant to be 2 weeks ahead on payments anyway (but we already were).

      I still don't understand why even the two weeks needs to be charged. They said they're waiting on clarity from the government, which kind of sounds shonky to me.

      Anyway, I can live with 2 weeks of credit build up, but still think the whole situation is overly complicated.

      Thanks everyone for your comments!

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