While many businesses across Australia are increasingly amending their workplace practices in order to recruit and retain talented staff, more still needs to be done by the Federal Government in the area of childcare tax exemptions, an Institute of Chartered Accountants survey has revealed.  
 
The Institute’s National Childcare Survey of 1597 business professionals has revealed that 82% of respondents believed that the deductibility of childcare or childcare as an FBT exemption would attract more women back into the workforce and assist in improving the current skills shortage that is affecting the business, industrial and commerce industries across the nation.  
 
A staggering 90% of respondents said they would support the option to exempt employer paid childcare services from Fringe Benefits Tax (FBT) and a further 60% said that they would consider providing access to childcare if the costs were FBT free.  
 
Similarly, 81% of respondents also supported the proposal to make childcare costs tax deductible to individuals who incur childcare fees to work.  
 
The Institute of Chartered Accountants, CEO, Graham Meyer said that of the businesses surveyed, 97% indicated that they had a formal flexible workplace policy including variable work arrangements, leave without pay and work from home arrangements.  
 
“Despite businesses re-evaluating their own workplace arrangements, the Government needs to become more involved. While the Institute welcomes the government’s commitment to create an additional 25,000 childcare places, more still needs to be done with tax-based solutions that will give more women the choice of returning to the workforce,” Mr Meyer said.  
 
“Today the Commonwealth Budget is in substantial surplus, most recent tax reforms are now well entrenched and the Government has given simplification to the system a high priority. The Institute believes that, in the context of this environment, the case for the tax deductibility for childcare should be revisited,” he said.  
 
The Institute also conducted a Newspoll of Australians and found that the general community would also welcome the introduction of tax exemptions for childcare.  
 
The survey found that 53.8% of respondents would consider going back to work full time if childcare costs were made tax deductible and a further 62% would consider working full time if their employer could cover the cost of childcare as part of a salary package.  
 
Mr Meyer said with both the business and general community supportive of the move it is hard to understand why there should be any resistance to the idea, as it will definitely assist in improving the skills shortage facing many businesses.  
 
The accounting profession amongst other professions is suffering a definite skills drought and in an unsustainable marketplace, the contributing factors to this employee famine include, not enough women in the work force, inflexible work practices, an ageing population, globalisation and reduced immigration.  
 
“The Government has so far focused on immigration but more needs to be done and women in the workforce is part of the solution for the skills shortage,” Mr Meyer said.  
 
“Across Australia, it costs families on average between $40 and $100 a day to place youngsters in childcare, a tax-based solution and a push for greater workplace flexibility will encourage women back into the workforce and effectively work to plug the skills drain in Australia,” he said.