20 October 2026
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The extension of the Australian Government’s Worker Retention Payment (WRP) will enable eligible early childhood education and care (ECEC) providers to continue accessing funding to support improved wages and workforce retention until 30 June 2028. The extension also introduces changes to eligibility and grant conditions, with the program now entering its next phase of implementation.
With the Worker Retention Payment (WRP) Extension Variation Agreement now available, below is a set of guidance on what service providers need to do to continue participating in the program, including the steps they must take and the key deadlines they need to meet.
WRP Extension Variation Agreement - Key steps & deadlines
The Worker Retention Payment (WRP) Extension Variation Agreement is now available in SmartyGrants for current grantees wishing to continue participating in the program until 30 June 2028.
To continue receiving funding for the extended grant period, early learning service providers must complete and submit their extension variation by 11 December 2026.
Providers do not need to update their workplace instrument before submitting the variation. This is a separate process, with a later deadline of 28 February 2027.
What does the extension include?
The Australian Government has committed $3.6 billion to extend the WRP through to 30 June 2028, supporting continued wage increases for eligible early childhood education and care workers.
As outlined in ACA’s earlier extension update, the announcement also included:
- A 5.8% hourly fee growth cap for existing grantees for the period 8 August 2026 to 7 August 2027.
- Expanded eligibility to include eligible Family Day Care and In Home Care services.
- Stronger child safety requirements, with services not rated as meeting Quality Area 2 of the National Quality Standard potentially ineligible for funding from July 2027.
Current grantees should now review their extension variation and complete the required steps in SmartyGrants.
Workplace instruments: a separate process and deadline
Grantees have until 28 February 2027 to update their workplace instrument to cover the extended grant period.
This means service providers can complete their extension variation now while progressing the required changes to their workplace instrument. There is no need to wait for an updated instrument to submit the variation.
For services using ACA’s Individual Flexibility Arrangement (IFA) templates, ACA will provide updated templates in November to reflect the new grant guidelines.
How to access the extension variation
Early learning service providers can locate and complete their WRP Extension Variation Agreement as follows:
- Go to SmartyGrants.
- Select ‘Login’.
- Select ‘SmartyFile’ from the menu.
- Select ‘My Submissions’.
- Locate and open your relevant WRP Grant Agreement.
- Select ‘WRP Extension Variation Agreement’.
- Review the documents and complete the execution process through SmartyGrants.
NOTE: The variation must be completed by a person authorised to approve legal changes on behalf of your organisation.
Key dates to remember
- 11 December 2026: deadline to complete and submit the extension variation.
- 28 February 2027: deadline to update the workplace instrument.
- 30 June 2028: end of the extended grant period.
What if a provider does not wish to extend?
Service providers are not required to accept the variation. Those who choose not to accept, will remain subject to thte terms of their existing grant agreement. However, CCS sessions of care provided after 30 November 2026 will not be eligible for WRP funding.
Providers who do not intend to extend their participation are encouraged to contact the ACA WRP Support Service to discuss their circumstances and next steps.
Free support for all service providers accessing the WRP funding
The ACA's free WRP Support Service can help service providers understand the extension process, key deadlines and workplace instrument requirements.
Contact us on 1300 856 379 or wrp@childcarealliance.org.au.
