28 April 2013

Needing to save on child care fees while at work? Employees can salary package child care fees from a facility that is a registered child care provider.

There are two types of child care facilities that can have the fees salary packaged. These are:

  • Non-employer owned – privately and government owned
  • In-house provider – it is operated by the employer.

Employees of the following can salary package both of these options if allowed by their employer:

  • charities
  • not-for-profit organisations
  • public or private not-for-profit hospitals

Those employed in a private or corporate sector organisation can only salary package in-house provider child care.

Employees should contact their employer to see if their organisation supports the salary packaging of child care fees.

Note: As these fees can be salary packaged, they can enable employees to save on tax and reduce their taxable income which could affect their entitlement to government benefits. With any salary packaging product, sgfleet recommends that employees seek their own independent financial advice to fully understand the implications and benefits of salary packaging.