Have read Eva B's report and am unable to reconcile some of the percentages. The recommendations of the Productivity Commission to simplify the current subsidy scheme is long overdue and will be welcomed within the industry.
The government currently subsidise long day at the rate of $4.10 per hour. If you receive a rebate from the government of 50% , the 50% applies to the $4.10 not what the centre is charging you per hour. Parents are currently entitled to claim 24, 50 or 60 hours of care per week. Parents who access 24 hours care (2 days) also receive a loading of 110% on their entitlement, any increase in days over that sees the loading deteriorate very quickly on a sliding scale, so your third day may cost you almost as much as the two days combined. The report implied that parents who utilise minimum days may be encouraged to enrol for additional days, they will now have to consider the loss of that loading and meet the proposed activity test. There was also no mention of the proposed introduction of the other two forms of subsidised care and the affect that they may have to enrolments.
G8 were the main player for so long, but the last 12 months have seen another 3 corporates list on the asx. That together with private operators still building centres will bring some strong competition to the field of early childhood. I do think that there is a possibility of a takeover within the other three corporates.
GEM Price at posting:
$3.91 Sentiment: None Disclosure: Not Held
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