28 July 2006

Australia’s peak business tax forum, the Business Coalition for Tax Reform (BCTR), welcomes the positive measures announced by Labor leader Kim Beazley in his “Care for Kids” Blueprint.

Under the current tax system, only childcare provided on employer premises is exempt from Fringe Benefits Tax (“FBT”). This represents a significant barrier for small and medium organisations that do not have the infrastructure to provide on-site childcare facilities, and only benefits working parents of larger employers.

This morning’s announcement means that the FBT exemption would be extended to employers that provide spending that increases “the overall number of childcare places, or improves the quality of current facilities”.

The BCTR sees this announcement as a useful contribution to the development of a policy framework that provides appropriate incentives for parents to participate in the workforce.

About the BCTR

The Business Coalition for Tax Reform is a coalition of business groups seeking to promote a more efficient and robust taxation system for Australia. BCTR members share a common vision: to create and implement a tax system that enhances business competitiveness and fairness, and assists in creating a business climate conducive to investment, growth, job creation and private saving.

Contacts:

John Stanhope, Chair, BCTR through Stephen Morrison on (03) 9632 3701.