The Australian must be getting desperate for subscribers. The...

The Australian must be getting desperate for subscribers. The title "Daycare costs set to double as rebates run out" is as misleading as a journalist can get without going to jail.

The title implies that Aussie families will pay twice as much for childcare next year. Not true. Dig deep into the article to discover the facts:

1. Childcare costs double AFTER families use up the $7500 rebate limit. They revert to regular rates at the beginning of the next financial year (i.e. 1st July). But don't expect The OZ to print an article on 2nd July with the title "CHILDCARE FEES FALL 50% FOR AUSSIE FAMILIES!"

2. The title implies this is an epidemic problem. Not true (yet). The percentage of families who use up the entire $7,500 rebate this year is -- wait for it -- 6.2 percent. Yes, one out of every 16 families use up the entire rebate, and for most it is used up towards the end of the year. The OZ does note that only 2.3 percent used up the rebate three years ago (why not compare to last year? Not dramatic enough, I guess.)

3. Almost NO ONE has costs "double" for most of the tax year. Even the 6.2% who use up the rebate do so in the last quarter of the year.

There is an important issue (buried in this messy article) that fees are currently rising faster than government subsidies. However, no mention of the fact that childcare ratios and other government regulations have increased costs this year. The fees vs govt rebate problem might be one-off as the industry adjusts to its higher costs.

However, it is important for investors to monitor childcare fee increases and costs because because customers will eventually walk away if fees become unmanageable.