Thursday, October 06, 2011

Work or not to work?

So I just met with a friend who came down from Tasmania today. Since she is a mother of a one year old child and is also working, she had a better understanding of the childcare benefit system.

Childcare was at least minimum about 16k Aud per year for five days a week in Tasmania. Whereas it was about 25k Aud per year for the rate in Sydney.

Considering that my current childcare workplace charges 70Aud for preschool and 75 for nursery per day, and does not provide food, and is located half an hour from the city by train,
that is considered expensive.

If one parent is not earning at least 50k minimum treshold, it was not worth going back to work, as the childcare charges is enough to eat off the entire wages earned. With a second child, one parent should be earning 75k.

There is also a yearly rebate for each child when doing tax returns, which is about 8k but I am not sure if this for combined incomes, or on a single income.

Hence, I think as a result of this, many people have opted to put themselves as 'single parents', as the benefit for them is much more. Or some couples opt to divorce, separate, but still live under the same roof.

Tsk Tsk Tsk.

Really abusing the tax system.

Sent from my Nokia phone

1 comment:

CheaYee said...

Apparently the Child Care rebate is per year paid into families account, and is probably paid into one parent's account. It is not income tested. The CCB on the other hand is income tested, and is different from the rebate.

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