CHILD CARE BENEFIT AND CHILD CARE TAX REBATE CALCULATOR
This is designed as an estimator only and does not encompass every possible scenario. See assumptions below. You are encouraged to seek your own professional advice before making decisions regarding salary packaging. Instructions: insert data in shaded cells, hold cursor over cells to see further information regarding the information required
Information Required:
Family income Marginal tax rate of employee No. of children in care (not including school children) Days of care per week (assumes same for all children) Cost of care per day (assumes 8 hours care) Taxable income > $180,000 $80,000 - $180,000 $34,000 - $80,000 $6,000 - $34,000 < $6,000
Marginal Tax Rates
Marginal tax rate (incl Medicare) 46.5% 41.5% 31.5% 16.5% 0.0%
Cost Comparison:
Cost if salary package (after-tax) Initial cost (equals salary sacrifice) Tax would otherwise pay on salary Net cost Cost if pay directly Initial cost Less CCB (max 50 hrs/wk) Less CCTR Net cost Best to package or pay directly……. $0.00 $0.00 $0.00 With old CCTR With new CCTR $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Pay directly Pay directly
Assumptions include, but are not limited to: 1. Calculates for up to 3 children only 2. Calculates for non-school children only 3. Ignores uplift for part-time use of child care 4. Assumes all children use care for the same number of hours per week, 52 weeks of the year 5. Proposed new CCTR not means tested (yet to be confirmed by government) 6. Applies only one marginal tax rate to salary sacrifice amount, which may not be accurate if employee drops to next tax bracket
This tool is of a general nature and is not intended to be relied upon or to be a substitute for specific professional advice. No responsibility for loss occasioned to any person acting on or refraining from action as a result of any of the content of this tool can be accepted. Some parts of the tool may be subject to administrative or legislative changes.