AUSTRALIA - INCOME SPLITTING TO JOINTLY FILE TAX RETURNS
Couples with children would be allowed to split incomes and jointly file tax returns under a One Nation policy launched by Senator Pauline Hanson.
PRESS RELEASE - Tax Savings for Families One Nation 26 January, 2025
Couples with children would be allowed to split incomes and jointly file tax returns under a One Nation policy launched in Adelaide today by Senator Pauline Hanson.
Senator Hanson said the proposal sought to remove the disadvantage experienced by wage income earners with families, or couples considering whether they can afford to start a family.
“One Nation wants to give wage earning couples with families a choice to file tax returns separately or together,” she said. “In many cases it would save couples a considerable amount of money in terms of their taxes, providing immediate and much-needed cost-of-living relief.
“It can also encourage couples to start families sooner because they can better afford it, and reduce childcare costs for the government by better enabling one partner to stay at home if they choose.
“Income splitting is permitted in Australia for business owners and in property transactions. One Nation wants to extend this to wage earners with children.”
One Nation’s lead Senate candidate for South Australia, Jennifer Game, said a couple in which one person earns $120,000 per annum and the other person nothing would be $9533 better off under the proposal.
“Income tax on $120,000 is $29,467 but income tax on two $60,000 incomes is $19,934,” Ms Game said. “Income tax on a couple in which one person earns $120,000 and the other $30,000 is $31,709; under our proposal they could split incomes evenly ($75,000 each) and save $2022.
“One Nation will be taking a suite of practical measures to the Federal election to relieve costs for Australians and their families. Other countries such as the United States allow income splitting and joint filing. It’s time we caught up and provide greater choice to Australian taxpayers.”
Original release article here
Tax System Should be More “Family Friendly”, says Canavan
March 26, 2015 / Media, Media Releases / 2 minutes of reading
Australia’s income tax system should be made more “family friendly”, according to Queensland Senator Matt Canavan.
“The situation now is that families with a single breadwinner are disadvantaged compared with families where both parents have paid employment, mainly through the tax-free threshold,” Senator Canavan said.
“Figures from the Parliamentary Library indicate a single-income household earning $120,000, for example, now pays around $10,000 more tax than a double income family with the same joint income of $120,000. The disparities carry on across various income levels.
“To address this, Australia should introduce a capped form of income splitting similar to the successful scheme introduced by the Canadian Government last year.
“The proposal would allow a couple with dependent children to transfer an amount of income equivalent to the tax free threshold from the higher income earner to the lower income earner for tax purposes. This would in effect give single income couples access to the same tax free thresholds as dual income couples.
“I am suggesting that total tax relief per couple be capped at $2,000 a year. The program would deliver tax relief to upwards of 700,000 families.”
Based on costings provided by the Parliamentary Budget Office (PBO), the cost of this policy would be in the order of $1.5 billion a year, Senator Canavan said.
“While this costing looks to be on the expensive side, the scheme could be restricted to families with only a single income or with children younger than school-age,” he said. “We have a tight budgetary situation but our families package should look after all families, including those with a stay-at-home parent.”
Senator Canavan described Australia’s income tax system as one of the most hostile in the developed world for single-income families.
“Around half of all developed nations allow some form of shared tax arrangements ,” he said.
“Australia’s social security system, family law and child-support arrangements all assume that family income and assets are shared between family members. However, as it is presently structured, Australia’s tax system does not recognise this economic reality.
“Reforms are needed that recognise the reality of family economics, including family based taxation. This would remove the problem of so-called ‘middle-class welfare’ by encouraging family self-provision, and letting people take care of their own families, which is how it should be.”
Original release article here