{"id":"C2024A00140","name":"Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024","slug":"wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"140 of 2024","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":436419,"registerId":"C2024A00140-fast-fetch-1775953622954","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n![Commonwealth Coat of Arms of Australia](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nWage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024\n\nNo. 140, 2024\n\n \n\n \n\n \n\n \n\n \n\nAn Act to establish the Wage Justice for Early Childhood Education and Care Workers Special Account, and for related purposes\n\n \n\n \n\n \n\nContents\n\nPart 1—Preliminary\n\n1 Short title\n\n2 Commencement\n\n3 Objects\n\n4 Simplified outline of this Act\n\n5 Definitions\n\n6 Crown to be bound\n\n7 Extension to external Territories\n\nPart 2—Wage Justice for Early Childhood Education and Care Workers Special Account\n\n8 Wage Justice for Early Childhood Education and Care Workers Special Account\n\n9 Purpose of the Account\n\nPart 3—Grants\n\n10 Grants\n\n11 Terms and conditions of grants\n\n12 Application of this Act to approved providers that are not legal persons\n\n13 Conferral of powers on the Secretary\n\n14 Executive power of the Commonwealth\n\nPart 4—Miscellaneous\n\n15 Delegation by the Secretary\n\n16 Transitional provision—funding agreements made under A New Tax System (Family Assistance) Act 1999\n\n17 Sunset provision\n\n18 Rules\n\n \n\n![Commonwealth Coat of Arms of Australia](image.002.png)\n\n \n\n \n\nWage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024\n\nNo. 140, 2024\n\n \n\n \n\n \n\nAn Act to establish the Wage Justice for Early Childhood Education and Care Workers Special Account, and for related purposes\n\n[Assented to 10 December 2024]\n\nThe Parliament of Australia enacts:\n\nPart 1—Preliminary\n\n \n\n1  Short title\n\n  This Act is the Wage Justice for Early Childhood Education and Care Workers (Special Account) Act 2024.\n\n2  Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this Act The day after this Act receives the Royal Assent. 11 December 2024\n\n\nNote: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.\n\n3  Objects\n\n (1) The object of this Act is to support remuneration increases for workers in the early childhood education and care sector, a sector that provides an essential service, in order to:\n\n (a) address current workforce shortages by helping to attract and retain early childhood education and care workers; and\n\n (b) contribute to the ongoing professionalisation of the early childhood education and care sector; and\n\n (c) ensure that early childhood education and care remains accessible and affordable to families; and\n\n (d) encourage good faith bargaining and the making of enterprise agreements in the early childhood education and care sector.\n\n (2) Another object of this Act is to implement Australia’s international obligations under the Convention on the Rights of the Child done at New York on 20 November 1989.\n\nNote: The Convention on the Rights of the Child is in Australian Treaty Series 1991 No. 4 ([1991] ATS 4) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).\n\n4  Simplified outline of this Act\n\nThis Act establishes the Wage Justice for Early Childhood Education and Care Workers Special Account to support remuneration increases for workers in the early childhood education and care sector.\n\nAmounts may be debited from the Account to make grants to approved providers to support those remuneration increases.\n\n5  Definitions\n\n  In this Act:\n\nAccount means the Wage Justice for Early Childhood Education and Care Workers Special Account established by section 8.\n\nAppropriation Act means an Act appropriating money for expenditure out of the Consolidated Revenue Fund.\n\napproved provider has the same meaning as in the A New Tax System (Family Assistance) (Administration) Act 1999.\n\nnon‑corporate Commonwealth entity has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nofficial has the same meaning as in the Public Governance, Performance and Accountability Act 2013.\n\nSecretary means the Secretary of the Department.\n\n6  Crown to be bound\n\n (1) This Act binds the Crown in each of its capacities.\n\n (2) This Act does not make the Crown liable to be prosecuted for an offence.\n\n7  Extension to external Territories\n\n  This Act extends to every external Territory.\n\nPart 2—Wage Justice for Early Childhood Education and Care Workers Special Account\n\n \n\n8  Wage Justice for Early Childhood Education and Care Workers Special Account\n\n (1) The Wage Justice for Early Childhood Education and Care Workers Special Account is established by this section.\n\n (2) The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.\n\nNote: An Appropriation Act may contain a provision to the effect that, if any of the purposes of a special account is a purpose that is covered by an item in the Appropriation Act (whether or not the item expressly refers to the special account), then amounts may be debited against the appropriation for that item and credited to that special account.\n\n (3) The Secretary is responsible for the Account.\n\n9  Purpose of the Account\n\n  The purpose of the Account is to make grants under section 10 to provide funding to support remuneration increases for workers in the early childhood education and care sector in order to facilitate access to quality early childhood education and care.\n\nNote: See section 80 of the Public Governance, Performance and Accountability Act 2013 (which deals with special accounts).\n\nPart 3—Grants\n\n \n\n10  Grants\n\n (1) The Secretary may, on behalf of the Commonwealth, make a grant of financial assistance to a person or body (including a partnership) that is an approved provider, in relation to the remuneration of workers engaged by the provider.\n\n (2) Without limiting subsection (1), a grant under that subsection may be made by way of the reimbursement, or partial reimbursement, of costs or expenses.\n\n (3) Subsection (1) does not authorise the making of a loan.\n\n (4) A grant under subsection (1) must not be made to a person or body unless the person or body has applied for the grant.\n\n11  Terms and conditions of grants\n\n (1) The terms and conditions of a grant made under section 10 must be set out in a written agreement between the Commonwealth and the recipient of the grant.\n\n (2) The recipient must comply with the terms and conditions.\n\n (3) Without limiting subsection (1), the terms and conditions must:\n\n (a) include provisions to permit amounts paid to the recipient under the grant to be used in relation to the remuneration of workers within a class specified in the agreement for this purpose; and\n\n (b) include provisions to limit any increase in fees that may be charged by the recipient for providing early childhood education and care; and\n\n (c) provide for the circumstances in which the recipient must repay amounts to the Commonwealth.\n\nNote: An amount repayable to the Commonwealth would be a debt due to the Commonwealth.\n\n (4) An agreement under subsection (1) is to be entered into, and may be varied and administered, by the Secretary on behalf of the Commonwealth.\n\n12  Application of this Act to approved providers that are not legal persons\n\n (1) This Act applies to the following as if it were a person, but with the changes set out in this section:\n\n (a) a partnership;\n\n (b) an unincorporated entity or body, other than a partnership.\n\nPartnerships\n\n (2) An obligation that would otherwise be imposed on a partnership by this Act is imposed on each partner instead, but may be discharged by any of the partners.\n\n (3) A permission that would otherwise be conferred on a partnership by this Act is conferred on each partner instead, but may be exercised by any of the partners.\n\n (4) For the purposes of this Act, a change in the composition of a partnership does not affect the continuity of the partnership.\n\nUnincorporated entities\n\n (5) An obligation that would otherwise be imposed by this Act on an unincorporated entity or body (other than a partnership) is imposed on each member of the entity or body’s governing body instead, but may be discharged by any of the members.\n\n (6) A permission that would otherwise be conferred on such an entity or body by this Act is conferred on each member of the entity or body’s governing body instead, but may be exercised by any of the members.\n\n13  Conferral of powers on the Secretary\n\n  The Secretary may exercise a power conferred on the Secretary by an agreement under section 11.\n\n14  Executive power of the Commonwealth\n\n  This Part does not, by implication, limit the executive power of the Commonwealth.\n\nPart 4—Miscellaneous\n\n \n\n15  Delegation by the Secretary\n\n (1) The Secretary may, by writing, delegate any or all of the Secretary’s functions or powers under Part 3 to a person who:\n\n (a) is an official of a non‑corporate Commonwealth entity; and\n\n (b) has the expertise appropriate to the function or power.\n\n (2) In performing functions, or exercising powers, under a delegation under subsection (1), the delegate must comply with any directions of the Secretary.\n\n16  Transitional provision—funding agreements made under A New Tax System (Family Assistance) Act 1999\n\n (1) This section applies to a written agreement that is:\n\n (a) in effect under section 85GA of the A New Tax System (Family Assistance) Act 1999 immediately before 1 July 2025; and\n\n (b) entered into under the program known as the ECEC Workforce Retention Payment program.\n\n (2) The written agreement has effect, on and after 1 July 2025, as if it were a written agreement entered into for the purposes of section 11 of this Act for a grant under section 10 of this Act.\n\n17  Sunset provision\n\n  This Act ceases to have effect at the end of 30 June 2028.\n\n18  Rules\n\n (1) The Minister may, by legislative instrument, make rules prescribing matters:\n\n (a) required or permitted by this Act to be prescribed by the rules; or\n\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n\n (2) To avoid doubt, the rules may not do the following:\n\n (a) create an offence or civil penalty;\n\n (b) provide powers of:\n\n (i) arrest or detention; or\n\n (ii) entry, search or seizure;\n\n (c) impose a tax;\n\n (d) set an amount to be appropriated from the Consolidated Revenue Fund under an appropriation in this Act;\n\n (e) directly amend the text of this Act.\n\n \n\n \n\n \n\n \n\n[Minister’s second reading speech made in—\n\nHouse of Representatives on 12 September 2024\n\nSenate on 18 November 2024]\n\n \n\n(111/24)\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is narrowly focused on creating a special account and authorising conditional grants to approved ECEC providers to support worker remuneration increases, which aligns with the stated objects (s 3) and the simplified outline (s 4). The inclusion of a transitional provision (s 16) simply converts an existing ECEC Workforce Retention Payment program into the new grant framework, and the sunset clause (s 17) limits the duration. There is no material expansion beyond those core functions in the text: it does not create new regulatory powers beyond standard grant administration, does not set wages, and does not appropriate specific sums in the Act itself."},"complexity_factors":["Short statute: 18 sections across 4 Parts (concise structure).","Limited number of defined terms in the interpretation section (Account, approved provider, Secretary, Appropriation Act, non‑corporate Commonwealth entity, official) — fewer than 10.","Direct cross‑references to other legislation (Public Governance, Performance and Accountability Act 2013; A New Tax System (Family Assistance) Act 1999) create some external dependency.","Simple conditional logic: grants require application, must be under written agreement, may be reimbursements, not loans (ss 10–11).","Delegation and rule‑making powers (ss 15, 18) introduce administrative discretion but are standard and constrained (s 18(2) lists prohibitions).","A transitional provision converting existing program agreements into this Act’s framework (s 16) adds a modest implementation complexity.","Sunset clause limits duration (s 17), simplifying long‑term regulatory layering."],"plain_english_summary":"**What this law does (mechanics)\n\n- Establishes a named special account in the Commonwealth budget called the \"Wage Justice for Early Childhood Education and Care Workers Special Account\" and places responsibility for that Account with the Secretary of the Department (s 8).\n- Permits the Secretary, on behalf of the Commonwealth, to make grants out of that Account to \"approved providers\" to support increases in the remuneration (pay) of workers in the early childhood education and care (ECEC) sector (ss 9–10).\n- Grants must be paid under written agreements that set terms and conditions. Those agreements must specify which classes of workers the money may be used for, must include limits on any fee increases charged by the recipient, and must state when repayments to the Commonwealth are required (s 11).\n- Grants may be reimbursements (or partial reimbursements) of costs; loans are explicitly excluded (s 10(2)–(3)). A provider must apply to receive a grant (s 10(4)).\n- The Act applies to partnerships and unincorporated entities as if they were persons, with obligations and permissions falling on partners or governing-body members (s 12).\n- The Secretary may delegate functions under Part 3 to appropriately skilled officials of non‑corporate Commonwealth entities, and the Minister may make rules by legislative instrument to carry out the Act (ss 15, 18). The Act stops operating on 30 June 2028 (s 17).\n\nWho is affected\n\n- The Commonwealth: it funds the Account (through appropriation processes) and administers grants via the Secretary (ss 8, 10).\n- Approved providers in the ECEC sector (as defined by the Family Assistance legislation) are the intended recipients of grants (s 5 definition; s 10). This includes corporate and non‑corporate providers (s 12).\n- Workers in the ECEC sector: the grants are intended to support increases in their remuneration (ss 3, 9). The Act does not itself set wages; it provides funding to providers to support pay increases.\n- Families using ECEC services are affected indirectly: grant agreements must include provisions limiting fee increases by recipients, which constrains how providers can pass costs to families (s 11(3)(b)).\n\nWhy it matters (stated purpose and how it operates in practice)\n\n- The Act’s stated objectives are to help attract and retain ECEC workers, contribute to professionalisation of the sector, keep ECEC accessible and affordable for families, and encourage good faith bargaining and enterprise agreements (s 3(1)). It also cites implementation of Australia’s obligations under the Convention on the Rights of the Child (s 3(2)).\n- Mechanically, the policy instrument is a time‑limited grant program funded through a special account. That means the Commonwealth will authorise and disburse funds to eligible providers under contract-like agreements that impose conditions on how the money is used (ss 8–11).\n\nPractical effects, incentives and trade‑offs (testing the stated objectives against costs and implementation mechanics)\n\n- Who pays: the Commonwealth funds the Account (s 8) from appropriations; public funds are the source of the grants.\n- Who decides and how much discretion they have: the Secretary (and delegates) decides grant recipients, negotiates agreement terms and enforces compliance (ss 10–15). The Minister can make rules to support administration (s 18). This concentrates administrative discretion in the executive branch and in the Secretary’s office.\n- Incentives for providers: because grants can be reimbursements of documented costs (s 10(2)), providers are incentivised to allocate funds toward the pay items specified in agreements. However, providers must accept limits on fee increases (s 11(3)(b)), which may constrain the ability to pass costs to families.\n- Costs and fiscal trade‑offs: public cost is the total value of grants authorised and appropriated. The Act imposes no fixed appropriation amount in text; appropriation occurs through standard budget and appropriation processes (s 8 note; s 18(2)(d) prohibits rules from fixing appropriation amounts).\n- Compliance and administrative burden: recipients must apply (s 10(4)), enter into written agreements with detailed conditions (s 11), and may need to provide evidence for reimbursement claims. The Commonwealth must monitor use of funds and enforce repayment when conditions are breached (s 11(3)(c)). These create administrative work for both providers and the department.\n- Concentration of benefits and eligibility scope: only \"approved providers\" as defined in the Family Assistance legislation are eligible (s 5). That means benefits accrue to providers within the existing approved-provider system; providers outside that system are not directly eligible. The Act treats partnerships and unincorporated providers as eligible but assigns legal obligations to partners or governing‑body members (s 12).\n- Risk of distortion or substitution: the Act funds pay increases via grants; absent strict terms, there is a risk that funding could substitute for other pay components or employer investments unless agreements specify use (s 11(3)(a) requires specified classes of workers to be identified). The reimbursement model can reduce risk if agreements require supporting documentation.\n- Implementation risk and enforcement: effectiveness depends on clear, enforceable grant terms, active monitoring, and capacity to recover funds where terms are breached (s 11(3)(c)). Delegation (s 15) and rules (s 18) permit administrative design decisions but also require careful specification to avoid inconsistent practice.\n\nLimits and guardrails in the Act\n\n- Grants cannot be loans (s 10(3)).\n- The rules power cannot create offences, impose taxes, provide coercive powers (arrest, search), set appropriation amounts, or amend the Act directly (s 18(2)).\n- The Act is time‑limited and ceases to have effect after 30 June 2028 (s 17).\n- Existing ECEC Workforce Retention Payment agreements made under the Family Assistance Act are transitioned into this Act’s grant framework from 1 July 2025 (s 16).\n\nNet description in one sentence\n\n- The Act creates a Commonwealth special account and authorises time‑limited, conditional grants to approved ECEC providers to support pay increases for ECEC workers, with oversight and contractual conditions set out in written agreements administered by the Secretary (ss 8–11)."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation remains tightly focused on its original purpose of establishing a funding mechanism for childcare worker wage increases. The scope has not expanded beyond the establishment of the Special Account and the grant-making framework. The transitional provision (s.16) merely preserves existing agreements under the previous program rather than expanding coverage."},"complexity_factors":["Short statute: only 18 sections across 4 Parts","Minimal defined terms: only 5 definitions in section 5, most referencing external legislation","Simple conditional logic: grants require applications (s.10(4)) and written agreements (s.11), but no nested exceptions","Single cross-reference mechanism: relies heavily on definitions imported from Family Assistance legislation and PGPA Act","Straightforward administrative structure: Secretary has clear powers, delegation permitted only to officials with appropriate expertise (s.15)","Limited operational detail: substantive grant criteria, eligibility thresholds, and payment rates left to delegated legislation (rules under s.18)","Sunset provision provides clear temporal boundary (s.17)"],"plain_english_summary":"**What this law does:**\n\nThis Act creates a dedicated bank account (called a \"special account\") to fund pay rises for childcare workers. The government can put money into this account and then use it to give grants to childcare providers (like daycare centres and preschools) to help them increase wages for their staff.\n\n**Who it affects:**\n\n- **Childcare workers** – the intended beneficiaries of the wage increases\n- **Approved childcare providers** – businesses and organisations that run early childhood education and care services and can apply for grants\n- **Families** – because the law requires providers who receive grants to limit how much they increase fees for parents\n\n**How it works:**\n\n- The **Secretary of the Department** (a senior public servant) manages the account and decides who gets grants\n- Providers must **apply** for grants and sign a written agreement\n- These agreements must:\n  - Specify which workers get pay rises\n  - Cap fee increases for families\n  - Set out when money must be paid back if misused\n- The law automatically converts existing workforce retention agreements from the old system to this new one from 1 July 2025\n- The whole scheme **shuts down on 30 June 2028** (sunset clause)\n\n**Why it matters:**\n\nChildcare is facing severe staff shortages. This law aims to make the sector more attractive by improving pay, while trying to keep childcare affordable for families. It also references Australia's obligations under the UN Convention on the Rights of the Child."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024","history":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024/history","analysis":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024/analysis","conflicts":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024/conflicts","importantCases":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024/important-cases","documents":"/api/acts/wage-justice-for-early-childhood-education-and-care-workers-special-account-act-2024/documents"}}