G8 Education investigation cost regulators $2.8 million, resulting in one penalty

Regulators spent more than $2.8 million investigating G8 Education’s attempted takeover of Affinity Education, a case that ended with one financial penalty and no convictions.

The Australian Securities and Investments Commission (ASIC) and the Commonwealth Director of Public Prosecutions (CDPP) pursued charges over several years stemming from the 2015 bid by G8, Australia’s largest listed child care provider, to acquire its then rival.

The investigation included litigation, multiple legal challenges and engagement of external counsel. Details, obtained by the ABC through Freedom of Information, show ASIC incurred more than $2 million in costs, while the CDPP spent $754,000.

At the centre of the case was former G8 chair Jenny Hutson, who was committed to trial in 2020 over allegations related to undisclosed shareholdings and the use of company funds. The charges were dropped in March 2025, reportedly after a key witness was found unfit to testify due to illness. Ms Hutson has consistently denied wrongdoing.

The only successful outcome was a 2019 penalty against former adviser Mary-Anne Greaves, who was fined $5,000 after admitting to misleading ASIC. She received no conviction.

Sector relevance and governance lessons

G8 Education operates more than 400 centres nationally under brands including World of Learning and Kindy Patch Kids. With thousands of families and educators relying on its services, strong governance in organisations like G8 remains essential to sector trust and long-term sustainability.

The investigation and its outcome raise broader questions about the costs and effectiveness of corporate regulation in the ECEC sector. The case unfolded during a period of rising scrutiny around fee transparency, provider accountability and the growing influence of large for-profit operators.

ASIC defended its approach, stating the evidence was strong enough to proceed and that enforcement decisions consider a range of legal and public interest factors. Legal experts note that regulatory action can still serve as a deterrent, even when cases do not result in convictions, due to reputational impacts and the financial cost of defending charges.

G8 declined to comment on specific legal costs, citing ongoing matters. Ms Hutson, through her legal representative, also declined to comment.

Looking ahead

The investigation concludes at a time when sector-wide oversight is under renewed focus. Recent reports from the Australian Competition and Consumer Commission and the Productivity Commission have highlighted the need for stronger transparency and governance in early education.

With further reforms underway and the role of large providers expanding, corporate accountability and transparency in early education are likely to remain under the spotlight.

This article is based on information first reported by ABC News.