As the Worker Retention Payment (WRP) grant continues into 2026, it’s important to stay ontop of key compliance requirements.
As a recipient of the grant, abiding by the grant guidelines is crucial to your ongoing eligibility to receive the WRP for your service.
This article will provide an overview on key compliance points, such as:
- Fee constraint condition
- Workplace instruments
- Onboarding new employees
- Notice of Requirements & how to action them
Fee Constraint Condition
The fee constraint condition is one of the most important compliance points for the WRP.
→ For individuals who applied for the WRP prior to 1 December 2025, you must abide by the below conditions:
- Unless alternative fee growth percentage caps are determined by the Department of Education (see further details below), to be eligible for funding from 2 December 2024, the fee growth percentage caps are as follows: ECEC Workforce Retention Payment Grant Opportunity Guidelines November 2025 16
- ·a maximum 4.4 per cent increase to Service fees applies from 8 August 2024 to 7 August 2025 (12 months post announcement);
- ·a maximum 4.2 per cent increase to Service fees applies from 8 August 2025 to 7 August 2026; and
- for subsequent periods until the conclusion of the grant, a maximum increase equivalent to the specified growth rate based on the new annual Childcare Services Cost Index which has been developed by the ABS specifically for the ECEC sectorection 9.1 – Fee constraint condition of the ECEC Worker Retention Payment Guidelines.
- Section 9.1 – Fee constraint condition of the ECEC Worker Retention Payment Guidelines.
→ For individuals who applied for the WRP after 1 December 2025, you have the option of abiding by the below cumulative fee cap:
- a maximum 8.6 per cent increase to Service fees from 8 August 2024 to 7 August 2026 (with no more than a 4.2 per cent increase between 8 August 2025 and 7 August 2026); and
- for subsequent periods until the conclusion of the grant, a maximum increase equivalent to the specified growth rate based on the new annual Childcare Services Cost Index
Important Fee Constraint Reminders
The Department of Education will review all hourly Service fees of every Service receiving grant funding, according to submitted session reports from the last CCS reporting fortnight before 8 August in each year of the term.
- New Services, and Services subject to change of ownership, face the same constraints on annual fee growth over the relevant period as existing Services participating in the grant
- If abiding by the fee constraint condition will impact your service(s) financial viability, you can apply for an alternative fee growth cap.
- As the fee constraint is monitored based on hourly fee changes, it is important to note the implication changing session lengths may have on your compliance with the condition.
Notices of Requirement - what are they?
- The Department of Education may issue you with a Notice of Requirement should they find you are potentially breaching a section of the grant guidelines.
- Typically, these are presented to service providers when the Department have recognised a breach in the fee constraint condition or inconsistencies in your WRP Annual Declaration (i.e, WRP expenditure does not match WRP funding received)
- Receiving a notice of requirement does not automatically mean your funding will cease. The Department typically provide an option for explaining your situation or remedying changes within a set time period.
- The Department of Education may issue you with a Notice of Requirement should they find you are potentially breaching a section of the grant guidelines.
- Typically, these are presented to service providers when the Department have recognised a breach in the fee constraint condition or inconsistencies in your WRP Annual Declaration (i.e, WRP expenditure does not match WRP funding received)
- Receiving a notice of requirement does not automatically mean your funding will cease. The Department typically provide an option for explaining your situation or remedying changes within a set time period.
What to do if you receive a Notice of Requirement
- Review carefully which section of the grant guidelines they believe you have breached
- Review if the Department have provided opportunity for you to remedy your error or provide further information. Assess whether this is a viable option for you. If yes – ensure you action any changes by the deadline outlined in the notice.
- If you believe the Department have made an error or the notice has been sent because of you inputting incorrect information – notify them immediately by replying to the email provided in the notice.
- Ensure you action your response and changes by the date outlined in the notice.
- If you are uncertain on how to action your notice, get in touch with our WRP support service ASAP.
Compliant Workplace Instruments
- If you utilised an IFA for the Compliant Workplace Instrument section of your WRP application, you must ensure that you retain 95% compliance throughout the grants lifetime.
- New employees who are onboarded & considered eligible for the grant must sign an IFA after their employment contracts have been signed. Their signed IFA must be retained on file but does not need to be uploaded to SmartyGrants.
New Employee Eligibility
- Employees who join your service after you have lodged your WRP application/been approved can still be eligible to receive the grant.
- Despite not being included in your initial application, if they are employed under the Children’s Services Award (2010) or the Educational Services (Teaching) Award 2020, they can still be considered an eligible employee for the purpose of receiving the grant.
- You should ensure you assess new employee’s eligibility to be receiving the WRP and action their payments as necessary, should they be eligible under the grant guidelines.
More resources available!
Should you require further assistance, access our below resources:
