Family Tax Benefit B to be scrapped?

[FabFiona]

I read in the report that tackling the homelessness problem is too expensive so the govt should basically give up. Good think they recommended 50% child care rebate for nannies though.

[wysiwyg]

The Audit Commission has some strange findings it is true (regarding homelessness, reduction in minimum wage, not looking at negative gearing at all) - and really doesn't look properly at costs and benefits of the proposals (The Conversation had a good article - Commission of Audit fails to consider costs and benefits).

Introducing the CCR for nannies (which is really CCR for 'in home childcare') makes good economic sense though - the demand at childcare centers outstrips supply - meaning people can not choose to use the centers only when they need them - e.g You have work for 6 months then no work for 3 months before finding another job - you can't pull your children out of childcare for the three months as won't get them back in - so you send them for the 3 months, when you could have them with you at home, which hits your pocket but also the governments as it is paying the CCR for that time and also the CCB if you are eligible. With the 50% rebate for in home childcare made more widely available (currently it exists but is very limited) - some people due to above work situations for example would switch from center based to 'in home care' and due to its flexibility would be able to only utilize it when required therefore saving everyone - plus freeing up childcare places for other people. Some people end up not working due to the inflexibility of child care which costs in terms of tax revenue, and depending on circumstances triggers the payments of FTB B etc.

The alternative would be to increase the number of childcare places available at centers so that people can only use them when they need them - but that would be a far more expensive option.