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.
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
Bookmarks