Education minister Simon Birmingham, has today, been encouraging providers of early learning to follow Goodstart's lead and offer services that match the needs of the families enrolled in their centres. To date I am unaware, of releases, from other large providers on the structure of the hourly blocks, they will be offering families after 2 July.
IMO the structure of the hourly blocks by G has been implemented to maximise the hours allocated to families through the activity statement.
An example would be a centre they operate close to Sydney CBD:
Fees $155.70 per day, operating 12 hours per day, currently with no hourly blocks offered.
A family receiving a 85% rebate would pay $1.95 per hour. Below are calculations based on the brackets allocated through the activity test.
(1) Qualifying for 50 hours through the activity test, attending 5 days they would pay $227.30.
(2) Qualifying for 36 hours through the activity test and attending for 3 days they would pay $70.56.
(3) Qualifying for 18 hours through the activity statement and attending for 2 days they would pay $112.98.
From the 2 July those fees, using the blocks introduced fees would be as follows:
(1) 50 hours over 5 days charged as 10 hourly blocks they would pay $97.50.
(2) 30 hours over 3 days charged as 10 hourly blocks they would pay $58.50.
(3) 18 hours over 2 days charged as 9 hourly blocks they would pay $35.10
The most important aspect is, that these blocks are being linked to the hours families are entitled to through the activity statement and G are, now introducing flexibility into their operations, whether it's political rhetoric or not is immaterial if it is (a) helping families financially and (b) allowing children more access to early education and care.
Reporting to the government and providing parents, through a new billing process, the actual hours they are attending against those they are actually attending, IMO is the government's attempt to increase parent pressure on providers to keep fee increases to a minimum.
Casualisation of the sector has been increasing for the past 5 years and has increased significantly in the past few years as centres struggle with occupancy and seek to reduce wages whilst still maintaining ratios.
Apologies, I should have said vacancy figures.
IMO & DYOR
GEM Price at posting:
$2.46 Sentiment: None Disclosure: Not Held
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