Father & Child supports the ‘Income Splitting’ Bill currently before select committee. The bill would treat parents who live together as an economic unit for taxation purposes rather than tax them as individuals, as is presently the case. The present taxation system disadvantages families with only one income earner compared to a family where the same earnings are split about equally over both parents. This affects almost all parents who just had a new baby.
Father & Child believes that choices over how parents divide income earning and caring responsibilities should be tax-neutral.
The bill is not expected to make it into law as it does not have the support of either National or Labour. It was brought into parliament by United Future leader Peter Dunne under a coalition agreement with National.
Father & Child’s support for the bill does not indicate support for any political party.
Full text submission here: Submission Income Splitting