in brief: Australian tax institute says childcare should be tax deductible
The Australian Tax Institute is urging the federal government to make childcare tax deductible.
The move is hoped to get parents back into the work force post-baby.
‘If we can encourage more parents – in the majority of cases, women – back to work after having a child, should they so wish, by removing disincentives in terms of the costs of childcare, then that’s good for the whole country,’ the Institute’s Robert Jeremenko told the ABC.
‘There are expenses attached to everything and we obviously have a burgeoning budget, but for the right decisions, expenses are acceptable.’
The childcare system is currently under review by the Productivity Commission and due for release in October, which would understandably be a platform for the ATI’s argument.
However, it appears the ATI has not yet made a submission to the review, which prompts a number of questions as the due date for comment has already passed for the draft report.
There is currently a $7500 rebate for child care in place, which is not means tested.
The Abbott government has also cited the potential for nannies to become tax deductible.