Salary Packaging In-house Child Care Expenses (Employer Provided)
Package your on-site childcare costs and save
You can salary package the cost of child care expenses if the child care facility is located on your employer's business premises. This benefit is exempt from FBT.
By packaging your child care fees, you could reduce your taxable income and save on tax. Plus, with Maxxia, you can set up regular ongoing contributions from your pre-tax salary directly to your child care provider - so we take care of the payments for you.
Note: An employee cannot salary package the in-house child care and claim the Child Care Benefit/Rebate at the same time.
Who can package child care fees?
You could salary package either child care fee option if you work for a:
- charity or other not-for-profit organisation
- private or public not-for-profit hospital
- private school, club, association or religious institution
and your employer offers this as part of your workplace benefits program.
You could salary package in-house provider child care fees if you work for a:
- corporate or private sector organisation
and your employer offers this as part of your workplace benefits program. Contact your employer to find out if this benefit is available to you.
What exactly can I package?
You could salary package your child care fees, as long as the child care facility is a registered provider.
There are two types of child care fees:
- non-employer owned
This could be a privately owned child care facility or one that is managed by your local council.
- in-house provider
This is a child-care facility which is operated in-house by your employer.
It's best to check with your employer to understand which type of child care fees you are eligible to salary package.
Note: Salary packaging child care fees may affect your entitlement to government benefits as salary packaging can affect the gross value of your salary. We recommend you seek independent financial advice to determine if salary packaging is right for you.
Contact your employer to find out if this benefit is available to you.
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