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Is Early Childhood Relief Package taxable income for Childcare business?

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Newbie

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Replies 15

The department of education replaced Child Care Subsidy(CCS) with Early Childhood Relief Package(ECRP) from early April 2020 for the businesses in Early childhood education sector to survive through the pandemic period.

 

CCS had been considered as a taxable income but ECRP was exempted and not considered as a taxable supply when it came to the Jobkeeper eligibility test (gst turnover test). So I am just confused if ECRP is also not included in BAS for taxable income.

 

 

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Most helpful response

Community Support

Replies 6

Hi @RP1701 ,

 

The Early Childhood Education and Care Relief Package is mentioned in the Dept of Education, Skills and Employment FAQ's. The 'Exceptional Circumstance Supplementary Payment' questions mentions GST, and there are conditions here when this payment is considered revenue for GST purposes. If it fits the category of not being revenue for GST purposes (it seems like this would be the usual occurrence), then it would not be included in G1 (Total sales) (not included in the BAS).

 

Thanks,

 

 

15 REPLIES 15
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Most helpful response

Community Support

Replies 6

Hi @RP1701 ,

 

The Early Childhood Education and Care Relief Package is mentioned in the Dept of Education, Skills and Employment FAQ's. The 'Exceptional Circumstance Supplementary Payment' questions mentions GST, and there are conditions here when this payment is considered revenue for GST purposes. If it fits the category of not being revenue for GST purposes (it seems like this would be the usual occurrence), then it would not be included in G1 (Total sales) (not included in the BAS).

 

Thanks,

 

 

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Initiate

Replies 5

How is this treated in the tax return.  Is it taxable income?

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Community Support

Replies 4

Hi @Marisa1,

 

The Child Care Subsidy is an exempt Australian Government payment. This means that you do not pay tax on this amount.

 

There is more information about amounts you do not pay tax on 2020 on our website.

 

I hope this helps!

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Initiate

Replies 3


@Alyce wrote:

Hi @Marisa1,

 

The Child Care Subsidy is an exempt Australian Government payment. This means that you do not pay tax on this amount.

 

There is more information about amounts you do not pay tax on 2020 on our website.

 

I hope this helps!


This doesn't help.  Can I ask again, is the "Early Childhood and Care Relief Package" received by early childhood education providers due to COVID19 taxable income in the Early Childhood educaiton provider's tax return?  The link you sent did not state that it was an exempt.  It didn't mention it at all. 

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Community Support

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Hi @Marisa1,

 

Thank you for your reply. We are currently looking into this and will respond as soon as we have some up to date information for you. 

 

Your patience is appreciated.

 

Regards,

Jodie2.

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Newbie

Replies 1

Curious about this as well.

 

Did you ever get an answer on whether this is assessable income for tax purposes or not?

 

Thanks in advance

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Initiate

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@Nick6 wrote:

Curious about this as well.

 

Did you ever get an answer on whether this is assessable income for tax purposes or not?

 

Thanks in advance


Hi Nick

No, this hasn't been answered.  I have also phoned the ATO and they do not know.

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Community Manager

Replies 7

Hi @RP1701 @Marisa1 @Nick6 

 

The Early Childhood Education & Care Relief Package paid to approved child care providers was not consideration for a supply. Therefore, you don't need to record the payment received in your total sales (G1) on your BAS.

 

In contrast, the Childcare transition payment is for a GST-free supply and would need to be recorded in the BAS.

 

Let us know if you have any further questions on this.

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Newbie

Replies 6

Hi Nicola,

 

Thanks for you reply, however what I wanted to know is for when completing the  tax return does the Early Childhood Education & Care Relief Package count as assessable income for tax purposes?

 

Thanks