Next year my boy is going into child care and my wife is returning to work.
We plan to put him in child care for three days a week and two days a week stay at home.
I'm currently trying to figure out whether it's better for my wife to just stay at home for those two days or if we split it whereas we both work 4 days.
I currently earn more than her (I earn about $110k and she earns about 90k) and I'm fairly sure both of our workplaces will be open to part time work if we gave them notice now.
So that means my day off will be more "expensive" than her but I believe there are other considerations
- Having a higher tax income means I'm in a higher tax bracket so doesn't that mean I actually save more on tax than her if I don't work the 5th day?
- she's due to return to work in January which is the middle of financial year. She's had no income this year whereas I've been working. So therefore, her annual salary for this financial year should be low - so does that mean her income from now till the end of the fin year will be taxed at a lower income bracket?
All this tax stuff is very confusing. I'm tempted to just make a decision based on our gut preference (I'd love to have a 3 day weekend every weekend) but money is going to be tighter so I'd like to at least investigate these options from a financial point of view.
I'm in Australia if that helps.