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Kia ora and a warm welcome to our website Policy Funding System Change Ideas Is GST exemption a possible golden bullet for the problem of rising costs and funding cutbacks?

Is GST exemption a possible golden bullet for the problem of rising costs and funding cutbacks?

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Here’s an idea that could help to achieve two things that the government wants for the early childhood sector:

  1. Not to increase fees to parents when government funding to services with 80% or more registered teachers is cut from February 2011, and
  2. To reduce bureaucracy, unnecessary paper work, and reduce the costs of compliance. 

The idea comes from HP Luthera who writes:

“The early childcare sector should have exemption from GST like residential house rent. It will give big relief to working parents who do not receive any funding. ChildForum should seek views and pursue.”

This idea has merit.

Overseas parents don't pay GST on childcare in Australia (see information below)


 


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