Australia's tax system discourages working mothers

3 March 2009



Australia's tax policy has a negative impact on women's entire life cycle by making it difficult for them to work when they have young children, argues  Professor Patricia Apps.

A member of the expert submission to the Rudd Government's Henry Tax Inquiry, Professor Apps said working mothers on low and middle incomes are being slugged with tax rates of more than 56 per cent - and the money is being used to pay for tax cuts for those on high incomes.

"Successive tax cuts at the top of the income distribution have been financed, at least partly, by higher taxes on working married women," said Professor Apps, quoted in today's  Daily Telegraph.

"This tax policy is one of the prime reasons women have half as much invested in superannuations savings accounts as men.

"And by bolting a family tax benefit system based on joint incomes on to a tax system based on individual earnings, we no longer have a progressive tax system."

To view the entire article - Battling mums taxed to help rich

Contact: Greg Sherington

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