Double taxation for working mothers

• edenboy

  8 Mar 06, 13:55

  Not sure about the law...... but this thought came into my mind.
  Assuming 2 working parents who send there only child to Child care centre.
  
  Also assuming that Childcare centre charges GST, Working mother also get taxed on child care fees as part of her income....
  
  Is the above true????
• Yi Peng

  8 Mar 06, 14:13

  Not true. GST taxes expenditure, not income.
  It is because of GST that income taxes are kept low. Taxing expenditure is a fairer tax because you get taxed when you spend. The more you spend, the more you get taxed. People won't spend more unless they have the means to.
• edenboy

  8 Mar 06, 14:42

  What I meant was...
  
  Childcare Fees ------- GST
  Money paid for Childcare Fees -------- Income Tax.
  
  I thought they were promoting child birth.
  
  So I feel that Fees paid for the year should not be included as your assessable income.
• Yi Peng

  8 Mar 06, 15:17

  So where is the double taxation?
• stellazio

  8 Mar 06, 15:26

  Originally posted by edenboy:

  What I meant was...
  
  Childcare Fees ------- GST
  Money paid for Childcare Fees -------- Income Tax.
  
  I thought they were promoting child birth.
  
  So I feel that Fees paid for the year should not be included as your assessable income.

  erm assessable income is salary+bonus+other income - donations ma..
  
  where got fees paid for the year?