Childcare costs: tax rebates are fairer than tax deductibility

11 Aug 2017 10:36 AM | Jean Murray (Administrator)

The federal government released its workforce policy last month: Towards 2025 - An Australian Government Strategy to Boost Women's Workforce Participation.  It covers a range of matters including childcare where it sets out the government’s rebate strategy.  A recent Daily Telegraph article interviewed 7 mothers (but no fathers) who advocated for tax deductibility for childcare.  BPW Australia advocates for rebates because all children are equally precious and equally expensive; richer parents should not be offered cheaper childcare than those on lesser incomes.  Rebates treat every child the same whereas tax deductions are proportional to the salary earned: essentially the more you earn, the higher your tax rate, the greater your tax deduction, the cheaper your childcare costs.  

BPW Australia
Australian Federation of Business and Professional Women
Suite 154, 16 Beenleigh Redland Bay Road Loganholme QLD Australia 4129
Ph: +61 7 3103 1391  |  Fax: +61 7 3112 6838  |  ABN 50 956 174 998 

 

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