Contact: Elizma Bolt
Deloitte
National Employment Taxes Leader
0411 144 405

Contact: Amanda Kennedy
Deloitte
Media & Communication Manager
0419 267 676

The government missed an important opportunity in its child care announcement last night by failing to link workforce participation to the funding for child care according to Deloitte National Employment Taxes Leader, Elizma Bolt.

“We’re ignoring the fact that business wants to be part of the child care solution,” Ms Bolt said.

“The Government has again failed to consider the ways in which business can work in partnership with Government to meet Australia’s child care needs.

“Through an FBT exemption, employers can provide employees with sponsored child care or the opportunity for employees to salary sacrifice their child care costs.

“This makes it easier and more financially appealing for people, particularly women, looking to re-enter the workforce.”

The substantial benefits that could be achieved by offering child care assistance through an FBT exemption was outlined in Deloitte’s pre-budget submission to the Treasurer on behalf of more than 40 high profile companies.

 “An FBT exemption could help draw people back to the workforce especially after maternity and paternity leave,” Ms Bolt said.

“It would increase returning employees’ take home pay by allowing them to salary package their child care costs or have the child care provided by the employer, free from FBT.

“Business wants to attract the most talented people available, and an FBT exemption could help provide Australia with a competitive edge.”

NB: See our media releases and research at www.deloitte.com.au