On 5.4.17, the Minister for Education and Training registered a legislative instrument: the GST-free Supply (Child Care) Determination 2017, to ensure that supplies of child-care remain GST-free.
As a result of the introduction of the child care subsidy, new s38-150 of the GST Act ensures that, in limited cases where child care is provided by a kind of service that may not hold approval under the family assistance law, but is nevertheless in receipt of Commonwealth funding for child care related purposes, supplies of child care made by the service remain GST-free.
The Determination specifies the only 2 kinds of child-care that is funded under Commonwealth funding programs, where the service is not required to maintain approval under the family assistance law, being:
- in-home care provided by a service that does not hold approval under the family assistance law under the auspices of the Interim Home Based Carer Subsidy Programme of the Commonwealth; and
- centre-based child care provided by a service that does not hold approval under the family assistance law under the auspices of the Budget Based Funded program of the Commonwealth.
DATE OF EFFECT: The Determination commenced on 5 April 2017.
[Federal Register of Legislation: Legislative Instrument; LTN, 6/4/17]