The Australian --- Page: 2 : 9 December 2006 Original article by Caroline Overington and Danah Behbehani
ABIX Summary
Employers and industry groups say that working Australian parents should be allowed to salary-sacrifice child-care fees. The call follows a report released by a government committee in late 2006 which recommends tax cuts on child-care. The most recent comments suggest a removal of fringe benefits tax (FBT) on child-care and the ability to salary-sacrifice. CSIRO, Westpac, the Department of Foreign Affairs & Trade and ANZ are amongst the larger entities that can afford to provide on or off-site child-care. Salary-sacrifice is permitted under a special exemption from the Australian Taxation Office, but this tends to privilege large businesses. The removal of FBT will potentially encourage more women to enter the workforce.
