Research shows that concerns around the Productivity Commission inquiry into Childcare are overstated

Research shows that concerns around the Productivity Commission inquiry into Childcare are overstated. We have reviewed the terms of reference as well as many of the submissions to the Productivity Commission in regards to early childhood learning. A draft commission report is expected early July ahead of a final report to the government in a few months. Judging from public documents including submissions, it appears funding is highly unlikely to be reduced and could be increased. If there is any change, we view the more likely outcome as a move towards a single, streamlined form of payment accompanied by either a similar level of funding or a mild increase. The public response to the recent budget would also indicate the Government will treat changes to childcare funding with kid gloves. It appears G8 Education (ASX:GEM), one of our key picks, looks well positioned to continue on its merry way.