UBS Reiterates GEM "Buy", page-58

What we know so far:

The breakup of the promised $859m as follows:

$409m for inclusion support. Currently, children receiving inclusion support funding are entitled to an additional member of staff to be employed on the days that they attend childcare. The support funding contributes towards the salary of that employee. That employee is not included in the required daily staff to child ratios. The maximum number of hours that can be funded per day are five, which is totally unacceptable, children with additional needs should be entitled to funding for the number of hours they attend. I expect that the hourly rate of ISF ( inclusion support funding) will be increased and the accessible hours also. Long overdue! It will also allow centres to seek out specialist equipment and resources should they be required by the centre for that child.

$156m for children at risk, families suffering severe financial hardship and increased subsidies for families moving from welfare to employment. Children at risk, can remain within their family environment with the government subsidising their attendance at childcare, offering additional support to families. An increase to this already stretched funding. Severe financial hardship can be granted by centres to families for a period of 13 weeks, this will be increasing this much needed assistance scheme. Moving from welfare to employment, this is a new form of support, no details released on this so far.

$304m community fund that will assist low income families in high cost childcare areas. Will benefit families who attend centres in metropolitan areas, where fees far exceed the national average and centres in remote and regional areas, that are necessary for the community they service, but are struggling to remain financially viable.
Co contributions to establish new buildings in areas of high demand, this will be metropolitan areas and perhaps newly developed areas with no childcare facilities.

Co contributions scheme, welfare to work and the community fund are welcomed additions. The others mentioned are already in place but look to be getting a rehash. Until Scott Morrison releases the finer details it is hard to say what effect it will have on corporate childcare, but I hope all shareholders end the week with a green day.

IMO