Well the policy seems to be subsidising the wages, there is nothing said about the businesses not being able to adapt for higher wage costs - although have to see I guess. Throwing money at the segment sounds great to me. There will be higher occupancy rates, and better choice of staff (who will come (back) into child care), (some qualified nannies will go for work in the centres with higher pay I suspect), and more efficient running of centres, with overheads shrinking as a proportion of total expenses. Even if they cannot milk the subsidies for everything they would like, they can build/buy/expand more centres and take advantage of higher demand in that way.
No guarantee that the ALP will get in as well.
GEM Price at posting:
$3.12 Sentiment: Buy Disclosure: Held
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