The latest article published by 'The Fool' on 26th May, paints a rosy picture of the governments generosity to childcare. Selective reporting at its best, in my opinion. It suggests that families earning under $165,000 per year will benefit by $30 per week in reduced fees. What they should have added was, only, if they meet the governments proposed Activity Test. The Activity Test is tough, and many families, who do not meet the Test, will have to make the decision on whether to pay full fees, reduce the number of days they attend or leave childcare completely.
All of this has to pass The Senate and if successful, will not be implemented until July 2017.
The Fool also failed to address the effect the changes to ratios will have on the profitability of centres. That has already been legislated and comes into effect in January 2016.
More informative and balanced articles on the child care industry can be obtained on www.careforkids.com.au and click the Childcare News link.
GEM Price at posting:
$3.78 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)