My feeling is that the Productivity Commission report into early childhood, handed to the government on 31 October is creating a few jitters within corporate childcare. Two of the main points of concern are the CCB and the CCR being replaced with one rebate, means tested, paid directly to the centres. Great to streamline the system, but the CCR which currently stands at 50% non means tested, will be replaced a means tested system with a minimum rebate of 30%. The introduction of rebate for nannies in the home, will be attractive to many families, especially families who have two or more children in care at any one time. The rebate for nannies is a positive solution for families who work irregular hours and will be embraced by families.
I see both of those, together with the change to ratios to be introduced in 2016 as having a detrimental effect on the profitability of centres.
GEM Price at posting:
$4.45 Sentiment: None Disclosure: Not Held
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