ATO Guide On Child Care Providers

The Tax Office has released a new fact sheet outlining recent changes to the tax law that apply to charities and how the changes impact on Not for Profit child care providers.

The fact sheet explains that, from 1 July 2004, Not for Profit child care providers are now charities for Australian tax law purposes, provided they meet all the characteristics required of charity.

Childcare providers that are charities because of the new law will be:
– eligible to receive charity tax concessions, and
– subject to the endorsement requirements that apply to charities.

Childcare includes day care, long day care (full-time and part-time), casual care, before and after school care, vacation care and occasional care. It is not limited to pre-school aged children.

Although the provision of these services is a charitable purpose under the new laws, childcare providers are still required to meet all the other characteristics of a charity to be charities for tax purposes.

The fact sheet outlines the requirements to be a charity, how to access charity tax concessions (including endorsement requirements) and organisations that are not affected by the changes.

If you would like a copy of the Fact Sheet in PDF format just send us an email with ATO Child Care in the subject line to probono@probonoaustralia.com.au.