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News Article


Home-care families deserve a break!
Tuesday, May 6, 2014


“Most voters we speak to agree that Australia’s huge debt should be reduced as soon as possible,” FamilyVoice research officer Ros Phillips said today.  “But many do not agree with the ideology underlying some key Audit Commission proposals .

“Single-income families (eg dad, home-based mum and kids) already pay significantly more tax per dollar than two-income families (dad, mum, both in the paid workforce, and kids).  The proposal by Abbott’s Commission of Audit would make this injustice far worse.”

Ros Phillips pointed out that:

  • Double income families get $36,000 tax free before they start paying tax.
  • Single income families get only $18,000 tax free, then pay tax on the rest of their income. 

“Family Tax Benefit B used to partly make up for the gap,” Ros Phillips said.  “If FTB is abolished, single income families would lose thousands of dollars – and double income families would be even further ahead.

“Double income families get up to $7500 in childcare assistance, and mums in these families get at least $10,000  in paid parental leave (up to $50,000 under Tony Abbott’s scheme).

“Single income families with home-based mums get no paid parental leave.  They receive only $2000 (first baby) or $1000 (later babies) as a “maternity payment” after the baby bonus was abolished last year.  They would miss out even more under Tony Abbott’s paid parental leave scheme,” Ros Phillips said.

“The Audit Commission’s underlying message is “home childcare bad, institutional childcare good” – the opposite of the findings of the latest Australian childcare study.

“That is why we are urging the Abbott government to abandon its paid parental leave scheme and retain Family Tax Benefit B – as a fairer way of balancing the nation’s budget.”

Categories:

  • Family and parenthood

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