News article - There is a better way to help mothers return to paid work

[AnyDream]

Upon reflection, they might have worded it that way so that the CC deduction happens against the highest earner's income. As it stands, the CC/benefits usually go to the lowest earner. So if your partner was earning, say $65K, and you were about to start work on a part time basis to earn $30K, as a couple you would want the CC fees to be deducted from the $65K person's tax, not the $30K person's tax. Or something.

[Astrid]

So are they saying have childcare as a tax deduction? Whilst overall, that might end up better looking at the whole year income, familes would be worse off, as they would be effectively paying all their income straight to childcare then waiting for massive tax return. Unless they are expecting the income earner to submit a yearly withholding variation to the ATO to have their tax rate adjusted. Which it itself is work for both the parent and the ATO.

[fionas]

The cost of childcare was never the deciding factor for me. I just wanted to work a mentally challenging job, part-time.

Very difficult to find.

[Astrid]

Cost of childcare is but one of many factors when it comes to returning to work. I am happy with the current system, it works well for our situation and am grateful for it existence. The CCB and CCR we receive, is in effect paid back by the tax I now pay, the reduced FTB we receive and the flow on effect of us spending/putting money back into the economy.
I can see though how the current arrangement would not suit other families