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.

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