Nursery World - Childminders given tax advantages

A five-year childcare strategy unveiled by the Irish government that will create a further 50,000 places by 2010 has stirred controversy by allowing most childminders to earn c10,000 a year tax-free without being inspected or regulated. Nursery providers accused the Fianna Fail and Progressive Democrats government of treating other childcarers unfairly and argued that the exemption should be extended across the childcare sector.

Nursery providers accused the Fianna Fail and Progressive Democrats government of treating other childcarers unfairly and argued that the exemption should be extended across the childcare sector.

Finance minister Brian Cowen, who unveiled his keenly-awaited budget last week, also announced an annual childcare supplement of c1,000 for every child under six, a modest increase in child benefit and new capital grant schemes for both the private and community sectors.

Mary McGrat, communications officer of Childminding Ireland, welcomed the tax exemption but said her organisation was disappointed that it did not exclude social welfare benefits from the income calculation.

Childminders looking after three children or fewer will qualify for the exemption but must notify their local county childcare committee, which has no regulatory or inspection function. If they look after four or more children they will not be entitled to any tax relief.

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