Federal Budget: Important Changes To The Child Care Rebate Cap
Couples or as a household who earn over $189,000 combined receive a childcare rebate of $10,560 per child. This is relatively easy to do when you've got a profitable business, and you might be distributing $100,000 each, you're already over that limit. The good news is the cap per child is now removed.
But if you've got two or more children in care, then you also get a 95% rebate on your child care, which is massive compared to what you would have ordinarily got, which is 65%. So that's an incredible move. And I thought we wouldn't normally talk about this stuff in the lens of business and SMSF but I do think it's going to be relevant for at least a quarter of our clients. Keep in mind it starts in just over a year's time. So I guess that's the downside of this one. We've got to wait.