11 December 2024
Parents at Tresillian’s Guthrie Childcare Centre in Wollstonecraft have expressed frustration following a sudden announcement of significant fee increases for 2025, with some accusing the facility of inadequate financial transparency.
In a letter dated 27 November, Tresillian CEO Rob Mills informed parents of a sharp rise in daily childcare fees, citing the Australian Government’s recent decision to grant a 15% pay increase to Early Childhood Education and Care workers over the next two years. The new fees, which range from $160 to $175 per day depending on age group, represent increases of between 22.1% and 27.7%.
“While we wholeheartedly support this increase for our early childhood educators, it has a direct impact on the costs of providing care,” Mills wrote. He explained that the fee adjustments were necessary to ensure the centre’s financial viability, given that the centre had operated at a loss of $268,000 in 2023. “Without a fee adjustment, we will be unable to support necessary wage increments for our dedicated staff providing high-quality care and services,” the letter stated.
But the announcement has drawn sharp criticism from parents, who described the timing and scale of the increase as unacceptable. A letter from some parents sighted by The Sun accused the centre of failing to communicate its financial difficulties earlier, noting that an August fee review did not indicate any looming crisis.
“The $268k deficit at Guthrie would have been known when the 3% fee increase was proposed in August. It is incomprehensible why a decision to impose a 20% increase has now been made with just one month’s notice,” the letter stated.
Parents also challenged the justification for the fee hike, arguing that the 10% wage increase set for December 2024 did not warrant such a steep rise. “At an absolute maximum, it could be expected that fees would increase by 14% from 2024 to 2025,” the letter claimed, suggesting that the proposed fees far exceed the actual cost increases tied to wage adjustments and standard inflation benchmarks.
In response, Mills addressed several of the concerns raised by parents, emphasising that the additional fees were solely to fund the mandated pay increases. “The additional staff pay increases imposed by the Federal Government are the only reason that the fees had to be adjusted to the current increase,” he wrote. He clarified that while the 3% fee adjustment in August was deemed sufficient at the time, it was based on increased occupancy rates following the completion of building works.
“This increment is not subsidising prior financial shortfalls. The additional fees raised are used to support the increased staff pay increments imposed by the government,” Mills stated.
Mills also contested parents’ interpretation of Tresillian’s financial performance, noting that the company’s overall $6.5 million surplus last year included $9.6 million from the sale of its Willoughby Centre. “Your summary of Tresillian’s financial performance is based on incorrect assumptions and is poorly understood,” he wrote.
To alleviate concerns, Mills extended the deadline for parents to submit their signed Complying Written Agreements by several days to tomorrow (12 Dec) and noted that many families had already expressed understanding of the challenges. “A large number of families have already submitted their signed CWAs, and I have received a number of personal emails from families respecting how difficult this fee increase decision has been for Tresillian,” he added.
Mills further highlighted that Guthrie’s new fees remain competitive. “The new Guthrie fees are still lower than the not-for-profit centres in the area, including those childcare centres managed by the Council,” he stated, encouraging parents to explore their childcare options.
But not all parents are not satisfied. Another letter sighted by the Sun questioned the claimed benchmarking of Guthrie’s fees against for-profit agencies, noting that those centres are subject to government-mandated caps on fee increases, which have seperately been reported at just over 4%. “The 2025 fee increase does not seem to take into consideration the rate cap and as such does not align with Guthrie’s / Tresillian’s values of the provision of affordable and accessible care to families, especially considering the financial stress many families are currently experiencing,” the letter said.
Parents proposed alternative solutions, including staging the fee increase over two to three years or committing to a freeze after the 2025 adjustment. They also requested detailed financial updates to rebuild trust.
Mills’ follow-up correspondence acknowledged further sector-wide pressures driving the fee hikes. “The Early Childhood Education and Care sector is in a workforce crisis, with high numbers of trained educators and teachers leaving due to burnout and low pay,” he wrote. Mills pointed to the Fair Work Commission’s upcoming review of the gender pay gap as another factor likely to drive costs higher.
However, some parents remain unconvinced. “Families are being asked to shoulder the burden of what appears to be poor financial management, with no accountability or explanation for why earlier adjustments weren’t made,” one parent commented.