Child Care Subsidy and Taxable Income

With the cost of childcare constantly rising, the Child Care Subsidy can often end up being more important for household finances than the tax returns.   However, as you may already know, your tax return is actually what determines how much Child Care Subsidy you get.

In that light, letting your accountant know your kid’s birthdays, how many days each are in childcare, and the fees for each could impact the tax advice you receive.

There are many timing decisions that you can legally make around June or July that impacts taxable income from one year to another, such as purchasing an asset (car), paying your employee’s superannuation, or realising (or not realising) a capital gain.

To make the most of your Child Care Subsidy, proactive planning with your accountant before the financial year ends can make all the difference.   By reviewing your family’s childcare arrangements and anticipated expenses, you can strategically time decisions to optimize your taxable income.   This not only maximizes your subsidy but also ensures your household budget stretches further in the face of rising childcare costs.

If you would like tailored advice on how to optimise your Child Care Subsidy and tax position, reach out to the team at Vawdrey Axton Turner for our expert guidance.