Daycare costs set to double as rebates run out, page-3

What is it they say "never let the truth get in the way of a good story".

There are some centres, especially in Sydney and Canberra, who have, since the beginning of February seen parents reach the $7500 cap. The majority of those centres have seen the families, reduce the days of enrolment. Those parents are using nannies, grandparents, using family day care or seeking flexible working options from their employers.

A child enrolled in a centre in Sydney, for four days per week at a cost of $140 per day, would reach their rebate ceiling after 26.78 weeks. The total cost of childcare, for that family, for a full year (assuming no CCB was applicable) would be $21,621.

When the government have been talking about flexible childcare options, the first thought is about centres opening longer hours or maybe opening on a Saturday. The "flexibility" IMO will be parents paying only for the hours they use. The savings to parents and the government would be significant.

The centres that IMO G8 have for sale, were not the first ones I thought they would unload. Some of the centres are mid to large size, 75 places plus. They have many smaller centres 24-36 place ones that, because of ratio's and regulations would not be as profitable as before. IMO I believe G8 have examined closely the number of working and non working parents registered in their centres, and that, together with a study of actual hours of attendance has prompted the sale of those centres.

Scott Morrison has stated on more than one occasion, that the government, under the new families package will not allow centres to "jack up fees" every time the government increases subsidies.

As suggested close monitoring of both government regulation changes and fee increases is required.

IMO & DYOR