If you’re eligible, your employer will deduct a portion of the cost of childcare from your pre-tax salary and pay it directly to your approved childcare provider. This means you benefit from reduced taxable income while ensuring seamless payments for your childcare services.
This benefit is generally available to permanent full-time employees of charities, not-for-profit organisations, and hospitals. However, eligibility criteria may vary depending on your employer’s salary packaging policies.
Important: You can’t salary package your childcare fees and claim the Commonwealth’s Child Care Subsidy (CCS) – or the former Child Care Benefit or Rebate – at the same time.
If you choose to salary package childcare, you must not claim these payments.
