The move is blamed on higher costs including labour and rent, but arrives ahead of the Albanese government’s new childcare subsidies beginning July.
G8 emailed parents on Friday about another increase, effective July 10. G8 said parents should contact centre managers to understand fees and how changes to subsidies might impact out of pocket costs.“Like many other organisations we are being impacted by higher labour costs and other costs impacted by continued high inflation,” it said.
The main drivers include a 5.75 per cent award rate increase for staff, which it will pass on from July 1. Other hits came from rent increases, higher energy costs and inflation in food and consumables, the email said.it recognised “affordability is an issue for families and we have not taken this decision lightly”.
The company, which struggled for several years, posted a 19.9 per cent lower full-year profit to December 31 of $36.6 million while maintaining its underlying operating earnings before interest and tax had improved 0.2 per cent to $80.3 million. In April, it said normalised first quarter earnings were between $9 million and $10 million, below analyst expectations. At the time, G8 said problems sapping occupancy levels, a key factor in profitability, at some centres included workforce shortages.childcare operators sector-wide are facing lease increases linked to inflation as well as wage increases. “The cost pressures going into next financial year are significant,” he said.
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