No won't affect them at all - instead of paying $12k/pa the parents will be coughing up $14k/pa as the govt subsidy is around $2k per child - and I bet the waiting lists will be just as long as they are now - a good move by Latham - and before anybody jumps down my throat I have two boys going to a GPS school in Sydney so I'll be paying up more next year if he gets in.
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