Plan for tax-deductible child care is on the table, but there is a catch

Families would be able to claim child care costs of up to $60,000 a year as a tax deduction under a proposal to be launched on Tuesday.

The plan would represent a windfall gain if it was extended to cover nannies and in-home care, which is not covered by the existing childcare rebate system for most families.

However, the report’s authors Rosalind Dixon, Richard Holden and Melissa Vogt recognise that tax deductibility offers little benefits to low-income earners.

Source: Plan for tax-deductible child care is on the table, but there is a catch

Leave a Reply

Your email address will not be published. Required fields are marked *