2 children in full - time care - anyone else - 50% of probable income is this right?

[wysiwyg]

So I am now looking at perhaps having to go back full time for a while as not having much luck yet with part-time. Trying to get my head around it from lots of different ways but according to my calculations 5 days a week for two children would equate to at least 50% of my probable income, a quarter of joint monthly income and more than our mortgage.

Is this right? Is a lot more than I thought (I think I had forgotten about the yearly CCR cap)

(I believe I have taken into account Child Care Rebate - and have done a variety of scenarios with CCB and is still around the 50% or higher)

Nanny would work out even more expensive as no CCR - Au pair is a no go as we live in a 2 bed flat. Family daycare I assume might be a bit cheaper than long daycare - but limited availability.

[BrightSparkles]

have you taken into account CCB and CCR?

[wysiwyg]

I believe I have - the 5 days a week makes a big difference because of the 7500 ceiling on the CCR - so part-time work would actually result in a lower percentage of income spent according to my calculations. I don't know anyone else with 2 children in full-time long daycare, to really try and confirm with because most people even if work full-time have family who will take the children some days etc.

[chody47]

I think it could be correct. Even with 4 days a week in care, the $7500 ceiling doesn't quite cover it in my case, so if you are essentially paying that 5th day out of your own pocket at full rates, and for two kids, it could get very expensive.

EDIT: These are the calculations in my case - are they similar to yours?

Full daily rate: $80
4 days per week: $320

Yearly cost: $16640
Less CCR of $7500: $9140 out of pocket

I get my CCR taken off my fees each week, but it still equates to the same total. Luckily for me we have only gone to 4 days this year, so we didn't reach the cap last financial year and wont this one either as I'll be dropping DD back to 1 day a week when I go on maternity leave.

In our case, the rate of CCB we would receive is so low I asked them not to take it out. At tax time I think I got a grand total of about $200 back after an entire year of childcare....

[Santosha]

I have no idea about CC rates. Just wanted to say that I wish I lived closer. I'd look after them for free - your kids are GORGEOUS!

[wysiwyg]

I have no idea about CC rates. Just wanted to say that I wish I lived closer. I'd look after them for free - your kids are GORGEOUS!

Ah thanks - I would rather be looking after them too, at least part of the week - hopefully it won't come to having to go back full-time (losing half the income to child care certainly makes it seem unfavorable!) - if it does I think will ship my mum over and pay for her to rent somewhere close by so she can look after them - would be cheaper and I would feel better about it too I think.

[Amity]

When I had two in full time day care, I was a single parent.

Family day care cost (in Melbourne) was $110 per child per day. That's $1100 per week. I did get *some* CCB, but this was before the CCR. It was phenomenally difficult. I ended up living with my parents for a while because I couldn't afford rent or mortgage because I was paying daycare. XH didn't help with CS either - it was all me.

[wysiwyg]

Wow Divvy I had thought family day care might have been cheaper but long daycare is 100 per day per child, so still cheaper and assume FDC would have gone up over last few years too.

[wysiwyg]

Yes my calcs are similar Chody am assuming no CCB as if went back full time would be to something similar to previous and that would take our combined to just over the threshold (as an aside was surprised so little difference between the threshold for one and two children as you are doubling your fees ).

[The[cookie]Doctor]

Mine works out at roughly 44% of weekly income AFTER tax, including CCB, however does not include CCR.
I would then get back roughly $12000 in CCR without taking into account for reconciliation.
If I were to count that $12000 as income it makes it roughly 36%