RS7 Return – Can You Afford to Opt In/Opt Out of Bonus Funding – ONLINE HUI for Service Providers

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Early childhood education financial and money matters

UPDATE: A calculations sheet you can use, a copy of the presentation, questions, and further information has been published and is now available for all our ECE Service Provider members – to access and view go to Pay Parity Funding

1 Step – 5 Steps Towards Pay Parity Online Hui

Can Your Service Afford to Opt In? Or Maybe it Can’t Afford to Out?

To explain the math and discuss issues there will be an online hui.

Tuesday 5th October 2021, 7pm

Presented by David Haynes

David will talk through the key factors you need to consider:

  • Pay parity – the background.
  • The Minister’s promise.
  • How did 6 steps become 5 steps?
  • What exactly is on the table?
  • Things to consider in your calculations.
  • What happens after you make your decision?
  • What else is coming?

There will be discussion and time for your questions.

Tap or Click here to Register

Registrations close at 10pm Sunday 3rd October, unless all places are taken earlier. 

No charge for Service Provider members
$150.00 per non-member

Further Information and Funding and Wages Tables

As before, the attestation question requires the signatory to attest if their service is paying all employed certificated teachers who are ECE qualified teachers and non-qualified ECE primary teachers at least at the minimum salary rate (Step 1 of the KTCA).  Should the signatory answer YES then they may choose to answer a second question on paying all teachers at least up to Step 5. Should the signatory answer YES then the service is eligible for bonus funding.

Services can opt-in, or opt-out, three times each year (usually February, June, and October).

Services that opt-in to the funding bonus for parity rates up to and including Step 5 through their October 2021 RS7 Return will be attesting in advance to paying not only Step 1 but also Steps 2 – 5 from 1 January 2022 (this attestation does not apply to the entire funding period).

If you opt-in on the RS7, your 1 November funding will be higher due to the attestation response.  If you then change your mind and opt-out from 1 January, the service may receive a significantly reduced wash-up payment.

If you opt-out on the RS7, your 1 November funding will only increase by the 1.2% that all services will receive.  If you then change your mind and want to opt-in from 1 January, the advance funding may not adequately subsidise the cost of employing certificated teachers. 

TABLE 1:  Teacher-led long-day centre funding rates linked to the attestation requirement to pay all certificated teachers at least at salary step 1.

From 1 Jan 2022Under 22 & over20 Hours
100% teachers$13.78$8.08$13.19
80-99% teachers$13.20$7.30$12.45
50-79% teachers$11.95$6.30$11.34
25-49% teachers$9.64$5.02$9.97
0-24% teachers$8.25$4.17$9.08

TABLE 2. Teacher-led centre long-day funding rates linked to the attestation requirement to pay all certificated teachers at least up to salary step 5.  

From 1 Jan 2022Under 22 & over20 Hours
100% teachers$14.13$8.29$13.52
80-99% teachers$13.54$7.49$12.77
50-79% teachers$12.25$6.46$11.63
25-49% teachers$9.88$5.15$10.22
0-24% teachers$8.46$4.28$9.31

Kindergarten associations must pay their teaching staff in accordance with the full-scale shown in Table 3 below.  Table 4 shows the funding table for pay parity at which kindergarten associations are paid.  

All other teacher-led centres and hospital-based services can choose to attest to paying their certificated teaching staff at Step 1 to receive funding rates for employing a higher-proportion of certificated teaches (see Table 1), or attest to paying at least up to and include Step 5 to receive the additional funding bonus (see Table 2). 

TABLE 3. Teacher pay rates equivalent to the primary qualified teachers’ scale

STEPQUALIFICATION LevelsPay rates
1P1E, P2E, P3E$51,358
2 $53,544
3P3+E$55,948
4P4E$58,133
5P5E$61,794
6 $65,776
7 $70,040
8 $75,190
9 $79,413
10P1M, P2M, P3M$85,490
11P3+M, P4M, P5M$90,000
 Head teacher$94,175
 Senior teacher$99,327
 Senior teacher (equiv. to primary school principal)$107,770

Table 4. Pay parity funding rates paid to Kindergartens operating long-days 

 Under 22 & over20 Hours
100% teachers$15.76$9.23$15.05
80-99% teachers$15.17$8.45$14.31
50-79% teachers$13.71$7.27$13.01
25-49% teachers$11.02$5.77$11.37
0-24% teachers$9.37$4.76$10.35

Kindergartens are required to provide full pay parity and provide specified benefits and working conditions (such as weekly non-contact time and 6 weeks paid holiday leave).  Funding also contributes to meeting the costs of regional management offices and staff. Revenue from fees can be limited due to no-fees and low-fee charging policies. Most kindergartens also employ a part-time administrator.  

Register Now for the Online hui – tap or click here
Registrations close at 10pm Sunday 3rd October, unless all places are taken earlier. 

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