More services will now be eligible for the Worker Retention Payment (WRP) from 1 December 2025.
Previously, services who exceeded the 4.4% Fee Growth Cap from 08/08/2024 to 07/08/2025 were not eligible to receive the WRP.
The Department have now changed this rule so that more ECEC services can receive the grant. From 1 December 2025, these services can become eligible for the worker retention payment if they comply with a new combined cap over 2 years.
- Services must abide by a combined fee growth cap of 8.6% across the 2 years
- They will not be eligible for funding for year 1 of the WRP
- The fee increase must not exceed 4.2% from 08/08/2025 to 07/08/2025
- A new form will be released in SmartyGrants from 1 December 2025 to apply under the new fee growth cap.
Sunny Smiles Early Learning Centre increased their hourly fees by 5.0% between 8 August 2024 and 7 August 2025.
Because this exceeded the original 4.4% fee growth cap, they were not eligible to receive the Worker Retention Payment (WRP) in Year 1.
However, with the new combined 2-year fee growth cap, the service may now become eligible from 1 December 2025, if they meet the following conditions:
How they can become eligible
Year 1 (08/08/2024 – 07/08/2025)
→ Fee increase = 5.0% → Above the 4.4% cap → Not eligible for Year 1 WRP
Year 2 (08/08/2025 – 07/08/2026)
→ They plan a fee increase of 3.4%, which is below the 4.2% limit for the second period.
→ 5.0% + 3.4% = 8.4% total growth, which is within the new 8.6% combined fee growth cap
Summary
Because Sunny Smiles has stayed under the 8.6% 2 year fee growth cap and kept their year 2 increase below 4.2%, they may now become eligible for the Worker Retention Payment from 1 December 2025.
All other services remain subject to the original fee growth caps
The fee growth cap is calculated on your hourly service fees
Providers may request an alternative fee growth cap still if financial viability is impacted
