Document ID: chunk:federal_register_of_legislation:C2005A00160:clause:1_2:p1
Version: federal_register_of_legislation:C2005A00160
Segment Type: clause
Provision Reference: sch 1 cl 2 (pt 1/6)
Character Range: 4117–6677

2  After Subdivision 61‑I
Insert:

Subdivision 61‑IA—Child care tax offset

Guide to Subdivision 61‑IA

61‑460  What this Subdivision is about

      You are entitled to a tax offset for an income year for child care fees if you meet certain conditions.
      The amount of the offset is 30% of the difference between the amounts for each child, in the previous year, of child care fees incurred and child care benefit entitlement. This is subject to an indexed cap of $4,000 per child.
      If the amount of the tax offset exceeds the amount of your income tax liability, the excess may be transferred to your spouse as a tax offset.

Table of sections

Operative provisions

61‑465 Object of this Subdivision

Entitlement to the child care tax offset

61‑470 Who is entitled to the tax offset
61‑475 Meaning of approved child care
61‑480 Meaning of entitled to child care benefit and entitlement to child care benefit

Amount of the child care tax offset

61‑485 Amount of the child care tax offset
61‑490 Component of formula—approved child care fees
61‑495 Component of formula—child care offset limit

Transfer of entitlement to unused balance of child care tax offset

61‑496 Entitlement to transfer
61‑497 Form of transfer

Operative provisions

61‑465  Object of this Subdivision

  The object of this Subdivision is to provide a *tax offset to assist families with the cost of child care.

Entitlement to the child care tax offset

61‑470  Who is entitled to the tax offset

 (1) You are entitled to a *tax offset for an income year (the child care offset year) for *approved child care provided in the previous income year (the child care base year) if:
 (a) you are an individual; and
 (b) there is at least 1 *child care base week for you and a particular child in the child care base year.

Example: If there is at least 1 child care base week for you and a child in the 2004‑2005 income year (the child care base year), you are entitled to a tax offset for the child for the 2005‑2006 income year (the child care offset year).

 (2) A week is a child care base week for you and a particular child in the child care base year if:
 (a) the week starts on a Monday in the child care base year (whether or not it finishes in the child care base year); and
 (b) you are *entitled to child care benefit for *approved child care provided for the child in the week; and
 (c) one or more of the following limits applies under Subdivision G of Division 4 of Part 3 of the A New Tax System (Family Assistance) Act 1999 to your *entitlement to child