Family Based Taxation

Australia has one of the most hostile tax systems against single income families in the world.

A single-income household with an income of $120,000 pays $10,000 more tax in Australia than a double-income family with the same joint income of $120,000.

This is unfair. People with similar ways and means should pay similar amounts of tax and our tax system should not seek to socially engineer parental decisions. If parents want to look after their own children they should not be discriminated against.

A recent OECD report found that, of the 37 countries examined, Australia had the 5th most discriminatory tax system against single-income families. One of the reasons things have got worse in recent years was the Labor party's decision to increase the tax free threshold from $6,000 to $18,200. 

In a submission to the Government's tax white paper, I have proposed a solution. All families should have access to two tax free thresholds so that all families do not pay tax before earning $36,400. This would help narrow the disadvantage that stay at home parent families face. 

A copy of my submission is available here.

I have also started a petition calling on the Government to provide a fairer system for stay at home parent families. To sign please go here.

Showing 16 reactions

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  • commented 2017-05-17 18:56:24 +1000
    Matt Canavan
    This is my experience with the Oz Gov’t tax system.
    I am on the aged pension, after having paid taxes to all persuasions of government for the past 50+ years.
    My family has been paying taxes since they were introduced. Actually my forefathers came as convicts on the first fleet … free transport there!
    Now, if I or my wife earn anything over $100 , I lose 50c in the dollar from my pension.
    If my wife earns over $100 she not only has tax to pay … 15c in the dollar, but I also am penalised by losing 50c in the dollar from my pension.
    All up between us we are hit with a tax of 65c in the dollar.
    Centrelink calls it a reduction in benefits?
    To me, if the government takes $$$ it is a tax. It can be called anything by the bureaucrats and powers that be, it is still a tax. So the final analysis is that aged pensioners in Australia are hit with the highest tax in the Western World. More than any multi-millionaire.

    David Knox, J.P.
  • followed this page 2016-07-19 07:32:12 +1000
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  • commented 2015-04-08 15:08:45 +1000
    Yes I agree. Stay at home mothers should not loose super and be put at a disadvantage in later life because they chose to care for children in the home.
  • commented 2015-04-08 14:50:36 +1000
    It’s incredible this burden on single-parent families hasn’t been addressed before! Perhaps a follow-up initiative might address the issue of the disappearing stay-at-home parents’ superannuation fund!
  • followed this page 2015-04-08 13:51:47 +1000
  • commented 2015-04-08 09:37:48 +1000
    It’s about time…
  • commented 2015-04-08 09:18:27 +1000
    I love being home with my baby. Who can care for her better than her own mum or dad? Please remove this discrimination in the tax system and ease the financial burden on single income families.
  • followed this page 2015-04-07 20:03:50 +1000
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  • commented 2015-02-10 13:19:37 +1000
    An excelldnt initiative.

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