Scenario

The scenario on this page offers a practice example of how reserved fee relief funds are applied through the Start Strong for Community Preschools program. Learn more about reserved fee relief funds in the program guidelines.

Fee relief in practice

In 2024, Happy Learners Community Preschool had 25 children enrolled for 600 hours or more at their service at the time of the Annual Preschool Census. This data is used by the department to calculate the service’s Fee Relief Payment funding for 2025.

Term 1

In 2025, Happy Learners received Start Strong Fee Relief Payment for 25 children ($4,347 per child or $1,086.75 per child per 10 week term). Only 20 children were enrolled and claimed fee relief during Term 1. This means that 20 children received fee relief funding. The fee relief for the remaining 5 places became reserved fee relief funds, where 5 places worth of reserved fee relief funds equates to $5,433.75 ($1,086.75 x 5 = $5,433.75)

Term 2

At the start of Term 2 2025, Happy Learners receives 2 new enrolments who complete a declaration form to receive Start Strong Fee Relief. Happy Learners now have 22 children claiming fee relief and they now have 3 fee relief places as reserved fee relief funds.

Term 3

In Week 4 of Term 3 2025, another child who was receiving fee relief left the service. Happy Learners reserved the fee relief funding allocated for this place. In Week 7, a new family was welcomed and decided to claim fee relief. Happy Learners applied the reserved fee relief funding to reduce this child’s fees from week 7 to the end of the term. The fee relief funds that were reserved for weeks 5 and 6 became surplus fee relief funds.

In Week 8 of Term 3 2025, a child who was receiving fee relief, left the service. Happy Learners reserved the remaining two weeks of fee relief funding allocated to that child. That place was not filled during the remainder of Term 3. At the end of Term 3, the 2 weeks of reserved fee relief funds become surplus fee relief funds.

This means at the end of Term 3 there are now 3 reserved fee relief places, 1 fee relief place that has become surplus fee relief and 21 children claiming fee relief (from a total of 25 fee relief funded places). The amount of reserved fee relief for Term 3 totals $3,260.25 (1,086.75 x 3 = $3,260.25)

Term 4

At the start of Term 4 2025, Happy Learners have 21 children claiming fee relief and 4 fee relief funded places that are considered as reserved fee relief funds totalling $4,347 ($1,086.75 x 4 = $4,347). There are no enrolment changes in Term 4.

The end of year result

Reserved funds

The table below outlines the reserved fee relief enrolment pattern for Happy Learners at the end of each term.

Term Number of places Calculation
Term 1 5 places worth of reserved fee relief funds $1,086.75 x 5 = $5,433.75
Term 2 3 places worth of reserved fee relief funds $1,086.75 x 3 = $3,260.25
Term 3 3 places worth of reserved fee relief funds $1,086.75 x 3 = $3,260.25
Term 4 4 places worth of reserved fee relief funds $1,086.75 x 4 = $4,347
Total 15 places across the year $16,301.25

These reserved fee relief funds for the program year will need to be returned to the department. This will be captured in the financial accountability completed by the service.

Surplus funds

Throughout the year Happy Learners experienced short periods of vacant enrolments. The fee relief funds that were reserved for these periods became surplus funds, with 4 weeks of fee relief funds in total.

Happy Learners used the funds to reduce the cost of additional charges to families accessing fee relief, in line with the Fee Relief Payment spending rules.

Contact

Get in touch with the Early Childhood Education Information and Enquiries team:

  • 1800 619 113

Category:

  • Early childhood education

Business Unit:

  • Early Childhood Outcomes
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