The inherent disincentive of the Child Care Subsidy
Source: Taxation In Australia Journal Article
Published Date: 1 Apr 2022
As a part of our transfer system, a fair, efficient and effective Child Care Subsidy (CCS) plays an important role in incentivising workforce participation, increasing Australia's productivity and reducing discrimination against primary carers. The various components of the current CCS, including the current rates, the hourly rate cap and the activity test, all work together to create disincentives within the system, effectively capping the productivity gains which result. Getting the CCS balance wrong results in lost access to valuable employees to provide the necessary services across our economy, increasing labour shortages and wage pressures beyond what we are already experiencing. Getting the balance right, unlocks the potential of not only increased productive hours, but also the knowledge of more individuals who can bring new ideas and concepts to the table which can only ever help Australia improve as a country.
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Details
- Published By: Scott Treatt CTA
- Published On:1 Apr 2022
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